Millennial Banking special reference to PSU

1. MILLENNIAL
BANKING
MILLENNIAL BANKING REFERS TO THE BANKING SERVICES THAT ARE TAILORED TOWARDS MILLENNIALS.
PRESENTED BY :
NEHA PANDE
JMG/S-I , 123183
SOLAPUR REGION

2. • The Silent Generation: Born 1928-1945 (78-95 years old)
• Baby Boomers: Born 1946-1964 (59-77 years old)
• Gen X: Born 1965-1980 (43-58 years old)
• Millennials: Born 1981-1996 (27-42 years old): ACTIVE WORKFORCE IN A COUNTRY
• Gen Z: Born 1997-2012 (11-26 years old)
• Gen Alpha: Born early 2010s-2025 (0-about 10 years old)
• When Pew Research revised its guidelines for generational classifications in 2018, Gen Z and
Gen Alpha didn’t appear on the list as separate categories. People born between 1997—the
cutoff for Millennials—and the present year were simply called “Post-Millennials.”

4. WHY TO FOCUS ON THIS SEGMENT : MILLENNIAL BANKING?
DREAM DEMOGRAPHICS
GLOBALLY, MILLENNIALS, OR GEN Y, ACCOUNT FOR ROUGHLY 23% OF THE WORLD POPULATION, OR 1.8
BILLION PEOPLE.
IN INDIA, MILLENNIALS ARE 34% (AT 440 MILLION) OF THE COUNTRY’S TOTAL POPULATION. THE LAST
FEW YEARS HAVE SEEN INDIA BECOME THE WORLD’S LARGEST MILLENNIAL MARKET, DRAWING
ATTENTION FROM ACROSS THE WORLD TO INDIAN MILLENNIALS.

5. WHY IS THE COHORT FINALLY TAKING CENTRE STAGE AT THIS INFLEXION POINT,
A SPOTLIGHT THEY HAVE NEVER HAD THE OPPORTUNITY OF SHARING WITH THEIR AMERICAN AND
CHINESE COUNTERPARTS?
• Fascinatingly, Indian millennials’ contribution to their national economy is of particular significance.
• Millennials in India, unlike in other countries, are among the main breadwinners of their households.
• The median age in the country is 28.4 years, which makes it one of the youngest major nations in the world,
especially compared with the ageing populations and workforce in the US, China, Germany, and Japan.
• This factor is likely to keep India buoyant for a long while to come.
• According to Deloitte, this demography will continue to dominate the Indian workforce for at least the next 10
years, if not more. Capture the Demographic Dividend mentioned in economic survey earlier.
•
As the first generation to grow up with the Internet, Millennials have also been described as the first global
generation.[4] The generation is generally marked by elevated usage of and familiarity with the Internet, mobile
devices, and social media.[5] The term "digital natives", which is now also applied to successive generations,
was originally coined to describe this generation.[6]

6. WORLD’S MOST POWERFUL CONSUMERS:
INDIAN TREND-SETTERS
•
Looking at sheer numbers and the disruptive force that Gen Y is becoming, this generation can no longer be ignored.
successive generations are growing up as digital natives – an indication of the massive technological advancement the country
had undergone.
•
In the context of the future being digital, this shift in the consumer profile and behavioural tendencies of the Indian millennial is
even more promising than it appears.
• With ready access to smartphones and high-speed internet connection, India is expecting to have 900 million internet
users by 2025, the majority comprising – you guessed it – millennials.
• And it isn’t simply access, but also usage that is likely to rise.
• According to a report by McKinsey, this cohort’s internet usage had increased markedly to 17 hours per week in 2018, and is
only expected to further increase in the coming years.
•
Add to that Morgan Stanley’s estimates that India’s 400+ millennials will spend $330bn annually by 2020, and it is no
wonder that the Indian millennials are being paid close attention to from Indian and global consumer companies alike.
• As the Indian millennial’s share of wallet is increasing, this generation will play a crucial role in India’s economic growth
trajectory.
• And, as such, this generation’s function, unlike generations before it, is expected to be particularly significant as they will
reshape and redefine the Indian growth story, a consumer one.
• The role that Indian millennials play hereon will be pivotal, not just in India, but the world at large.

8. BANKING NEEDS OF MILLENIALS:
1. Receive Realtime analytics of their spendings including safe
spending forecasts.
2. Receive recommendations on products and services that they
might need
3. Seamless experience across channel platforms, including
presence of brick and mortar branches .
4. Bank anytime
5. Gain personalized advice on budgeting and set financial goals.
6. Willing to trade financial returns for greater social impact: ability
to bank within Financial Institutions that reflects their self image
and values in the community.
7. Transparency and authenticity
8. Instant debit card ,prepaid cards issue
9. Seamless access to accounts, bill pay,estatments,P2P money
transfer, eliminate paper transactions: Digital mostly
10. Positive banking experience with lower fee cost.

10. POTENTIAL ACTIONABLE FORESIGHTS : BANKS NEEDS THAT ALIGN WITH
MILLENNIALS NEEDS & PRIORITIES
1. Increase relevance amongst millennials of Banks their branch
network: need based products.
2. Identify efficiencies which lower margin & cost services to online
experiences while incurring higher customer engagement.
3. Overcome negative perception: Branding
4. Provide cost effective approach to delivering personalized services.
5. Improve conflict resolution score as its key driver for Brand
Switching- causes Volatilality & less loyalty
6. Adapt to current delivery systems & channel strategy to appeal
Millennials: Tokenization , ATM, MOBILE,ONLINE BRANCHES.
7. Provide transparency & authenticity greater disclosure of loan
terms and community involvement.
8. Position banks as trusted & reliable platform to access funds &
investments.
9. Create efficiencies within systems while deriving 1-1 interaction to
drive high margin transactions and sales.
10. Proactive analytically based approval systems to speed up service to
open account, loan or credit card approvals.
ICICI BANK : MINE concept

12. BANK OF BARODA INITIATIVE FOR MILLENNIALS INCLUDE:
• BOB WORLD , M INVEST, BARODA E-TRADE, WATSAPP BANKING,DIGITAL RUPEE, MERCHANT
GATEWAY, DIGINEXT CMS,INSTA SMART TRADE, DOORSTEP BANKING, ETC.
• SPECIAL SEGMENT ON THE WEBSITE FOR MILLENNIALS,
• OFFERING REWARDS AND LOYALTY POINTS FOR TRANSACTIONS
• USE NEW AGE TECHNOLOGIES LIKE VOICE ASSISTANTS, AI, AND CHAT BOTS, BOB WORLD WAVE:
WEARABLE PAYMENT SMART WATCH.
• OFFERING EXCLUSIVE DEALS AND BENEFITS ON PURCHASES
• OFFERING INTUITIVE AND HASSLE FREE SERVICES
• PROACTIVE ANALYTICS TO AVOID CONFLICT ISSUES
• ADVISORIES- FINANCIAL DECISIONS : SRM /RM FOR PERSONALIZED
• START UP SUPPORT

13. CONCLUSION:
• Millennials provide banks with a continued growth opportunity as this cohort
tend to use primary banking products more than Baby Boomers and carry
higher minimum balance in their checking accounts. They also tend to become
advocates for institutions that treat them with respect and understand their
needs in reducing financial stress and confusion. This segment is also open to
allowing banks to migrate lower margin transactions to mobile and online
platforms and value physical branches as place to build relationships and
resolve issues. Creating an ultimate MX coherent strategy will allow banks to
build a strong affinity with the future wealth generators who will easily
outnumber the current Boomer generation over time.