Boston, MA, September 28, 2009 – A new report from Aite Group, LLC analyzes Generation Y's level of activity and involvement with the financial products they own, the extent to which they trust banks, and the impact that trust and engagement has on their referral behavior and purchase intention. Intended to help bank marketers understand the product ownership trends among younger Gen Yers, the report segments the generation into levels of financial engagement, and discusses tactics for winning Gen Yers' financial services business. It is based on a May 2009 Aite Group survey of 307 Gen Yers between the ages of 19 and 24, completed in collaboration with the Participatory Marketing Network.
After failing to develop strong relationships with older consumers, banks are now turning to Generation Y - with its emerging demand for banking products - as a source of growth in a weak economy. In addition, banks have an opportunity to start fresh and avoid the relationship sins they have committed in the past. Gen Yers' trust in banks is slipping, however. Only 14% of Gen Yers report that their trust in their primary bank has increased over the past year, while 22% say that their trust level has decreased over that time frame.
"Banks must avoid alienating Gen Yers as they did older consumers," says Ron Shevlin, senior analyst with Aite Group and author of this report. "Building strong banking relationships with Gen Yers involves getting them engaged with their financial lives and financial providers. Social networks and the online channel will be insufficient in accomplishing this. The tactics and strategies for winning Gen Yers' business must be cross-channel and even cross-family."
This 20-page Impact Note contains 25 figures. Clients of Aite Group's Retail Banking service can download the report by clicking on the icon to the right.