Moments of Truth (MOTs) are Seized by Value-Driven Experiences,
Every Moment that Harmonizes a Fitting Experience delivers Value
The only thread contemporary banks must be hanging by is experience-driven banking. If value-driven experiences are not realized, it’s going to be touch-and-go with the incalculable Millennial audience. The Millennial Disruption Index, conducted by Viacom Media, identified banking at the highest risk of disruption reporting that 33% of Millennials wouldn’t need a bank at all. Needless to say, Millennials are seeking much more than consistent, seamless and relevant experiences across channels. 73% reported that they’d be more excited about new financial offerings from Google, Amazon, Apple, Paypal or Square than their own bank. This threat needs to be offset by individualized experiences that would add value in a Millennial’s journey. Let’s jump straight into what a few banks of today are doing to lure their Millennial customers:
DBS- Boat Racing with the Millennials
If you’re not winning them hook, line and sinker, you need to plunge into new immersive experiences. This is exactly what DBS is betting on— boat racing that would ride the millennial wave and anchor their loyalty with a mind-blowing aquatic event. DBS Marina Regatta 2017, Singapore’s biggest Bayfest featured first-of-its-kind experiences with the country’s largest inflatable water obstacle course, Singapore’s largest interactive art dome, dragon boating, a 21,000 square foot ‘pop-up’ urban beach, a mass drone light display show and yoga workout sessions! The belief that Millennials value experiences was a motivation to embed them into their lives like never before. What started as a dragon boating event in 2013 has now morphed into an experiential pitch to Millennials!
Bank Leumi- Digital Banking with a Dose of Pepper!
You shouldn’t be taking this with a pinch of salt! With no branches, no website and a delayed launch one could have had one’s doubts about this new digital banking venture. However, at a press conference, Tamar Yassur, the Digital Banking Division Head of Israel’s Bank Leumi allayed all doubts with one categorical statement, “I know that our competitors are saying that Pepper is a gimmick. Were it a gimmick, it would be irrational to invest so much in it for two years.” This is a venture that can only be used on a mobile phone to attract the millennial audience. It took years of development with Switzerland’s Temenos Group, delays and a soft rollout for Bank Leumi to finally launch its digital bank Pepper. While it took $42.6 million, the strategy was to differentiate it from traditional banking. Pepper says it takes eight seconds for customers to open a new account. Not to be taken with a pinch of salt again!
Ally Bank- Embracing a Stellar Open Banking Model
There are banks that do and those that don’t. Those that do understand what flies with millennials and those that don’t— for reasons that can toast your brain. Giving away a toaster with a checking account goes into the latter category of frying a Millennial’s brain. Millennial savers just want a trustworthy financial institution rather than a marketing gimmick as bait to draw them in. But some banks are making all the right moves to woo their customers and keep them satisfied. Kiplinger’s Personal Finance, the first American personal finance magazine has published its “Best Banks” list. Ally Bank was Kiplinger’s top pick for both “Best Internet Bank” and “Best for Millennials”. With a straightforward top-notch digital product offering and lack of hidden fees, Ally Bank has embraced open banking with strong integration of social media and availability of Apple Pay, Android Pay and Samsung Pay making them a leader in this digital banking space.
Chase Mortgage- New Credit Card Award Program for Millennials
Following a trend from Housing Wire that pegged 93% of Millennials to want to own a home in the near future, Chase Mortgage introduced an added incentive for Millennials to secure a mortgage with their bank. Their existing Sapphire credit card customers who purchase a mortgage with Chase would get 100,000 Chase Ultimate Reward points that can be used for travel, gift cards, cash back and much more. Pam Codispoti, President of Chase Branded Cards remarked, “Half of Chase Sapphire customers are Millennials, many of whom are looking to buy their first home now or in the near future.”
Experiences are necessary, banks are not. Banks that realize this harsh reality would be able to create differentiated experiences and grow their Millennial customer base. DBS has taken the plunge in extending its dragon boating event to one that captures the Millennial’s imagination with unique experiences. Pepper would need to follow in the footsteps of an Ally to embrace the open banking ecosystem and Chase a rewarding experience for their Millennials. It can be safely taken with a grain of Pepper.
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