Three Ways IT is Helping Banks Win Millennials’ Brand Loyalty
Banks may not seem like the hottest of institutions, but technology is proving to be a game-changer. A recent survey of Millennials' favorite brands included not only expected winners like Instagram and Snapchat—but also Chase and JPMorgan. The latter ranked 13 and 14, respectively, among brands that have improved their standing with Millennials.
JPMorgan has been winning over Millennials with its successful integration of the online/offline experience, including strategic investment in mobile apps. The financial services juggernaut's CFO went so far as to declare "we are a technology company," not just a bank. As of 2016, the company employed a team of 40,000 technologists, including 18,000 developers.
Millennials aren't the only demographic that appreciates a convenient, safe, and seamless digital banking experience, either. Currently close to 70 percent of the Gen Z generation uses mobile banking apps daily. Meanwhile a Google-backed app developer has said the so-called generational gap in mobile banking is "non-existent." Google research shows that roughly 60 percent of Boomers use banking apps—only slightly fewer than the 64 percent of Millennials who do.
So, how can today's back-end IT strategy make tomorrow's front-end experience more successful, not just for Millennials and Gen Z, but for all of today's increasingly digital consumers?
Three ways to win in financial services IT strategy
The future-friendly IT roadmap will differ for every institution, naturally, but the following are a few landmarks to consider along the way:
1. Accept that change is critical to survival. Fast-moving fintech companies are disrupting big institutions by bringing in niche services and products that they can sustain at much lower operating costs than traditional institutions can. You can remain ahead of the curve by sticking with agile solutions that offer built-in flexibility for future moments when a pivot might become necessary. Be on the lookout for more innovations in cloud-based solutions, too.
2. Invest in the customer experience. While not every team can make like Citibank and invest $20 million in a behavioral analytics software venture, you can adopt customer intelligence systems to learn more about customers and improve interactions. Another primary way to ramp up customer engagement is to enable mobile payments with virtual payment credentials. To succeed, it helps to stay informed and partner with experts whose knowledge of the solutions can help keep costs in line.
3. Keep cybersecurity strategy on the front burner. Financial services CEOs are more concerned about cyber-threats, on average, than CEOs in other industries—for good reason. The technologies they're using are changing fast, and their customers are more mobile than ever. A comprehensive, scalable security program can proactively ward off advancing threats.
Any financial service brand's success depends on customer loyalty. With forward-looking IT solutions, backed by partners that understand industry-specific challenges, you can spark and sustain consumer trust and satisfaction. And those are values that customers of any age can appreciate.