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Mobile Builds Loyalty - and Revenue - with Gen X and Millennials

December 21, 2017
Aaron Junod

Aaron Junod, Vice President, Product Management

Mobile banking is something that has been around for a while. But the fact is, with advances in mobile technology and the growing sophistication of customers, Mobile banking is not ‘nice to have’ but a ‘need to have’ moving forward.

And Mobile-First is becoming the best way to build out your entire PFM platform.

If you’re not on a strong, forward-looking mobile platform, you’re going to miss out on the lion’s share of Gen Xers that use mobile banking. Gen Xers are basically 36-56 year olds. And remember, these are the peak earning years for most people, which means these are your best customers when it comes to marketing products.

According to Statista, 80% of this key demographic currently use mobile banking services.

Share of Gen X US Mobile Banking Users 2014 - 2019

Statistic: Share of Generation X mobile phone banking users in the United States from 2014 to 2019

According to Bank Innovation, nearly 70% of Millennials, the newest generation to draw FI’s and retailers’ attention, use mobile banking.

What’s more, Millennials tend to use their mobile banking more often than older generations. A study done by The Financial Brand shows that Millennials access their mobile banking app nearly 3 times more often than their non-Millennial counterparts.

That means there are nearly 3 times the opportunities to touch these customers with products or other messaging about your FI’s services.

Mobile is becoming the first choice for most of your customers, regardless of the demographics. It’s why having a Mobile-First strategy is crucial, not optional.

Malauzai Software, the Austin, Texas based digital banking firm, takes a different approach to mobile strategy. They believe, a MOX™ (mobile only experience) boosts customer and member engagement and optimizes the digital channel for the members and customers. On average, a typical bank or credit union has 25% of their end-users exclusive to the mobile channel. Best-in-class is 45% mobile-only.

"That’s why we call it ‘mobile-only’ and not mobile-first, because so many people use the channel exclusively," said Robb Gaynor, CPO for Malauzai. "Financial institutions that migrate to a true platform are able to further engage, while significantly driving down overall digital banking costs by 35%."

New Generations, New Solutions

There are added benefits to a ‘Mobile-First’ strategy. As a white label digital financial management company, Geezeo’s main goal is to make products as easy and compelling for the end user as they are data rich and valuable for the FIs that incorporate them.

We see our role as an integration provider that allows customers to develop a more comprehensive understanding and control of their overall financial picture. That gives FIs a deeper understanding of their customers’ needs, so they can deliver the kinds of products that their customers truly want.

As we move through the next stage of the Digital Age, mobility is becoming the key. Just as Millennials have never known life without computers, so too is mobile computing becoming a given, whether it’s retail shopping, communicating, or banking.

By focusing on these unique experiences and allowing customers to integrate their complete financial accounts – we can aggregate more than 17,000 financial institutions and service providers – our Mobile-First platform creates a unified view of customers’ finances that they can access whether in their office, at home or sitting in the stands at a basketball game.

The Mobile-First Benefits

This data enrichment builds a personalized experience and the mobile platform that’s frictionless and much more responsive than older, desktop-based digital financial management tools. A cleaner and faster experience means users want to stick around and do more. The more they do, the better off you are since you can see where they go, what they do, and what they’re interested in.

For example, when it comes to opening accounts, 28% of new savings accounts and 39% of new investment accounts were opened by Millennials online, according to The Financial Brand. If you aren’t catering to these online relationships, especially in the mobile sector, this is money you’re leaving on the table. Remember, both Gen Xers and Millennials are not the one-bank-for-life customers that Baby Boomers are.

If you don’t have the services that fit their needs, they will take their business elsewhere. Just look at legacy retailers, cable companies, and phone companies if you need examples of sectors that tried to make their customers adapt rather than adapt to their customers. No transactions

Tiles: A Winning Solution

For our own part, we have developed a tiles-based Mobile-First strategy.

Tiles are user interface components for clients to help quickly deploy our PFM features. They’re built with the same API that all FIs can access, so adoption is a breeze.

Our clients that are currently using them find them easier - and faster - to incorporate into their white-labeled PFMs. And they’re easily customizable and configurable. What’s more, their customers love them.

The Payoff

There’s no doubt that the potential of mobile is closer to its beginnings than it is to its end, which means there’s still plenty of time to get a comprehensive mobile strategy (Mobile-First or something else) in place.

The upside to delivering what the new generations of customers expect is that they are very loyal when you give them what they want. Research shows that it’s tougher to earn Gen X and Millennials’ loyalty, but when you get it, you’ve got it for a long time. Gen Xers are the most brand-loyal generation in the marketplace today. As you find ways to personalize your marketing and messaging to your individual customers, the more responsive they will be.

This is the true power of Mobile-First. It’s a win-win for your marketing and branding efforts as well as for your customers. And in the digital world we’re now in, win-win is the way to succeed. I’m always happy to discuss the strategies, products, and processes Geezeo is implementing to meet the needs of technology savvy consumers. I can be reached at ajunod@geezeo.com or on Twitter at @tranqy

Aaron Junod, Geezeo’s VP, Product Management, is a lifetime technologist and digital tinkerer professionally specialized in Financial Technology solutions for the core banking sectors and payment sectors. With more than 20 years of experience, Aaron has broad experience across many technical roles ranging from network administrator, to SaaS executive. Aaron has spent the last 12 years professionally specialized in the Financial Services industry previously managing hundreds of integration points, and billions of dollars of payments as the Manager of Integration at Evolution Benefits. As a full time tinkerer, Aaron spends some of his spare time dabbling in CryptoCoin development and trading, as well as learning Data Science and ML, as well as traveling and playing board games with his family.

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