Gen Y would happily bank with tech giants

Trevor Chappell
(Australian Associated Press)


Most Gen Y-ers would consider banking with a tech giant such as Google or Apple if it was possible, but not Facebook.

A report from professional services provider KPMG says 84 per cent of Gen Y-ers would consider banking with a tech giant if they offered a better product or deal than a traditional bank.

The finding highlights the importance of utilising technology if banks are to secure business from younger customers.

“This is in line with the importance given to getting the best value out of their investment and the fact that tech giants are already integrated into their daily lives and are able to deliver a more seamless experience,” said KPMG’s Banking on the Future Report.

Gen Y-ers are more likely to consider Google and Apple, but are unlikely to use Facebook because of data and security concerns.

The KPMG report also says Gen Y-ers are only likely to set foot in a bank if they want something big or if there’s a problem.

They also have no loyalty to a lender.

Technology makes it easier to go where the fees and interest rates are lower, and there’s cash back or frequent flyer points.

Gen Y-ers also want to conduct all their transactions through do-it-all apps on their phone or watch without having to take out their wallet.

They like to spend on luxury items, experiences and travel, and aren’t rushing to own property, largely viewed as unattainable because of soaring prices.

Gen Y-ers prefer to access goods and services as needed, at a fraction of the cost, rather than buy them outright.

The KPMG report surveyed more than 1,400 Gen Y-ers on what they want and expect from banks and other financial institutions.

The respondents – aged between 18 and 30, university-educated, relatively well paid, tech-savvy and globally minded – make up 22 per cent of Australia’s population and are expected to make up 50 per cent of the workforce in five years, says KPMG.

KPMG’s head of financial services management consulting, Daniel Knoll, says banks and other financial institutions have to deliver an enhanced customer experience to attract and retain Gen Y-ers.

“Convenience, whether managing money, making payments or accessing funds, has become the cornerstone of true engagement,” Mr Knoll said on Wednesday.


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