How Technology Is Changing The Banking Industry For Gen-Y

How Technology Is Changing The Banking Industry For Gen-Y
Technology
Like Us On Facebook
Like Us On Facebook

When was the last time you went to the bank, walked through the main doors and actually spoke to a teller? Weeks ago, maybe? Or months, if you’re like most people whose birthdays place them in the mighty Generation-Y.

Technology has changed banking forever, and it’s no secret that Millennials love their gadgets. Younger members of this generational cohort may just become the highest earning adults in 10 years, and despite gloomy economic prospects, most Gen-Yers are optimistic about their financial futures.

This means banks are going to need to get on board if they’re going to keep these digital natives happy; a clunky website is no longer going to cut it.

After The App

Mobile banking – via an actual bank or otherwise – is on the rise according to a recent Federal Reserve study, which explains why most of us haven’t set foot in a bank in ages.

More traditional banks are placing their bets on apps and hoping the next generation comes along for the ride. But, considering how many awesome indie banking apps there are right now, big banks may need to predict what’s coming next to keep customers happy after the app craze settles down.

Take Venmo, an app that makes sending and receiving money, splitting checks, paying rent with roommates and collecting on debts easy among friends.

Or newcomer Coin, an app and physical card that works like any debit card, but stores the information from all your debit and credit cards so you can streamline your wallet.

Then there’s Isis Mobile Wallet from T-Mobile, which lets you use loyalty cards and even pay with a wave of your phone at a growing number of retail stores.


Banking Without Banks?

For those not satisfied with the offerings of traditional banks, new alternatives are popping up every day. T-Mobile’s Mobile Money program is there for people who either can’t use traditional banking institutions or just don’t want to.

Peer-to-peer lending platforms that offer interest rates near zero take retail banks out of the lending equation and put people back in control.

Simple is a bank without a bank (though they have a “partner bank” so user funds are FDIC insured). To put it another way, it’s a full-service banking app that’s more app than a bank.

With options like those mentioned above, some people are choosing to look outside of big banks for financial services solutions.


Millennials On the Move

As of December of last year, more than half of all US smartphone users had done some or all of their banking on their Android phones and iPhones. In the UK, rates of mobile banking transactions doubled over the course of a single year.

According to the most recent xAd/Telmetrics Mobile Path to Purchase Study, Millennials, with their love of technology, are leading the charge with more than half of all mobile banking customers being under 35. Sound like you?

You’re obviously in good company when it comes to depositing checks by snapping a photo, or in the case of young entrepreneurs, accepting payments with a card reader attached to a phone.

As for what banks need to do, the answer is pretty simple: Step up that mobile game to attract non-bankers or lose out on a generation that may not have a lot of money right now, but is well on its way to financial success.

Photo via We Heart It

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Jessica Oaks

Born and raised in sunny Southern California, Jessica Oaks was bit by the writing bug at an early age and loved telling stories. After graduating from California State University Long Beach’s journalism program, she began her professional writing career at a couple of local publications. Currently, Jessica is a freelance writer who loves to cover technology, finance, fashion, travel and more. She especially loves covering how technology can make life easier for people. Jessica is also the associate editor at www.freshlytechy.com, a fresh blog that puts a sassy twist on technology. Follow Jessica on Twitter @TechyJessy.

More In Technology

Technology Connor Toole

Crib Toys That Let Babies Take Selfies Will Ruin The Next Generation

You’ve probably never wondered why there’s no technology out there that allows babies to take selfies. Because of all the niches that exist in the world today, that’s probably the last one that needs to be filled. That doesn’t mean people aren’t trying. According to the International Business Times, a Dutch designer has introduced the […]

Technology Sean Levinson

Drone Ambulances Could Make It To People Faster And Save More Lives

A Belgian engineering student has designed a drone equipped with a defibrillator meant to service victims of cardiac arrest. Ambulances can take as long as 10 minutes to reach their destination, says 23-year-old Alec Momont, which is why just 8 percent of the 800,000 people who have heart attacks each year in the European Union survive. […]

Also On Elite

World

Grandma Caught Selling Up To 100 Pounds Of Weed To Support Grandkids

A 65-year-old Sarver, PA, grandmother pleaded guilty to selling around 100 pounds of marijuana over the past five years. Authorities first charged Candace Kelly of Butler County in October of 2013 when they discovered 64 pounds of hydroponically grown marijuana and approximately $393,000 in cash. Those charges were dropped, however, because the family said that police […]

World

Mom Accidentally Gives Her Baby THC Via Breast Milk After Smoking Weed

A baby’s life could be in danger because his young mother wasn’t aware that marijuana use could affect the quality of her breast milk. After receiving a tip that residents were growing marijuana on the roof of their apartment building in Satu Mare, Romania, police raided the apartment of Bogdan and Diana Curelaru. There, the officers uncovered 60 […]

Humor

These Kangaroos Fighting Each Other Set To Classical Music Is Perfect (Video)

This is really what the Internet is all about, folks. I humbly present two kangaroos fighting on the street set to Johann Strauss’ “The Blue Danube Waltz.” This is the Ali vs. Liston of kangaroo street fights. But, somehow, with the classical music under it, the whole thing seems rather serene. Also, as an aside, […]

World

Scientists Discover New Crystal That May Allow You To Breathe Under Water

Danish scientists created a crystal that can both absorb and release oxygen, possibly allowing humans to breathe underwater. According to VICE News, the crystal can hold approximately 160 times more oxygen than we breathe, and roughly 10 liters of it can absorb all the oxygen in a room. Under the right conditions, the crystal can […]