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Millennials Bank Differently, But Not In The Way You Think

It’s no secret the way Millennials bank and make purchasing decisions is drastically different than previous generations. (We even wrote a white paper about differences in generational lending.) But when it comes to helping Millennials choose a financial institution, do you know what they really want?

Below are three important things to know about how Millennials bank and how your financial institution can leverage these unique differences to convert them into loyal customers.

Millennials Want Low Fees and Lots of Mobile Capabilities 

One thing is clear — Millennials know what they want and are unwilling to settle for anything less, and what this generation values above all else when it comes to banking are low fees and flexible options. Forty-five percent of Millennials cited high fees as the primary reason for switching banks, and late payment fees ranked second.

Another reason Millennials may forgo banking with a financial institution is a lack of technology to keep up with their digital lifestyle. Six percent of Millennials cited absence of social media or a poor website experience as reason for switching brands, while five percent cited the lack of a mobile app as reason to switch.

They Want to Be Engaged Via Social

Over half of the Millennial population has shared a brand experience on social, which means this generation can be particularly big advocates for your brand, or negative voices in the market depending upon how they feel about your institution. This generational trend of sharing life in real time on social echoes their desire to be engaged by brands on social.

Sixty percent of Millennials want to be engaged on social media and say if a brand does so, they’re more likely to become a loyal customer. Conversely, a failure to effectively meet complaints and questions on social can lead to a 15 percent churn rate.

The good news is that while they value digital interaction, Millennials are more brand loyal — a reported 1.75 x more than Boomers — and they don’t hold grudges.

Millennials are substantially more likely to reuse a product or service after a problem has been resolved.

… But They Still Want to Talk on the Phone 

With all of the statistics on how Millennials use social media, it’s easy to believe the myth they don’t want to talk on the phone (unless texting), or that the need for a contact center is dying out.

This simply isn’t true. Results from this retail banking survey display an even desire among all generations for personal interaction with their financial institution, with 27 percent of Millennials wanting the option for a contact center (vs. 26 percent of Boomers), especially in the event they need to escalate a problem from self-service to call.

Having an all-star contact center and implementing a social media customer service process ensures Millennials are able to get the answers they seek from your institution “on demand.”

This will go a long way toward making these account holders — and any Millennial prospects — feel your financial institution is truly there for them, one of the most authentic feelings of all.

View our webcast to learn more about how consumers of all ages interact with their financial institution and ways to enhance the customer experience during digital conversions and other change events.

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Harland Clarke Corp. is a leading provider of best-in-class integrated payment solutions and marketing services, serving multiple industries including financial services, retail, healthcare, insurance, and telecommunications.

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