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Gen Y'ers Look For Mobile When Choosing Banks: Poll

A poll commissioned by technology vendor Bancvue and conducted by Harris Poll also finds that rewards programs are important to this demographic.

Gen Y consumers primarily look for mobile services and rewards programs when shopping for a new bank, according to a study conducted by Harris Poll and technology vendor Bancvue.

The study -- commissioned by BancVue on behalf of the more than 200 community financial institutions offering its Kasasa brand of checking account products and conducted online by Harris Poll in December 2013 among more than 1,000 U.S. adults -- found that Generation Y adults ( those between age 18 to 34) with a checking account are more likely to say mobile banking is at least somewhat important when choosing a bank (78 percent) than those in the 35-54 age group (66 percent) or those ages 55 and up (44 percent).

Members of Gen Y are also more likely to believe customizable rewards are at least somewhat important (86 percent versus 73 percent of 35-54 year olds and 63 percent of those ages 55 and up) and that cash back options are at least somewhat important (88 percent versus 74 percent and 67 percent, respectively). A recognizable brand name is also more important to Gen Y adults (81 percent say it’s at least somewhat important) than it is to those ages 35-54 (68 percent), the study found.

While 72 percent of Gen Y adults say banking locally is at least somewhat important to them, roughly one-quarter of those same people who have a checking account but not bank with a community financial institution say they don’t use one because they don’t believe a community bank or credit union will offer the same benefits they’re getting at their current bank. Additionally, 30 percent of these Gen Y consumers say they don’t use a community bank or credit union because they’ve never thought about it.

[Related Content: 2014 Forecast: Many Community Banks to Increase IT Investment Next Year]

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio

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Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
4/29/2014 | 7:57:38 PM
re: Gen Y'ers Look For Mobile When Choosing Banks: Poll
And because community banks and credit unions that have increasingly thin margins can't spend $$ to market to customers that aren't profitable.
Byurcan
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Byurcan,
User Rank: Author
4/28/2014 | 11:08:24 PM
re: Gen Y'ers Look For Mobile When Choosing Banks: Poll
That's cause these Gen Y punks are empty-headed
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
4/28/2014 | 9:25:42 PM
re: Gen Y'ers Look For Mobile When Choosing Banks: Poll
Me.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
4/28/2014 | 9:23:45 PM
re: Gen Y'ers Look For Mobile When Choosing Banks: Poll
I want a free microwave. And cash. And points. Hi, I'm your extremely demanding Gen Y customer.
Becca L
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Becca L,
User Rank: Author
4/27/2014 | 9:35:46 PM
re: Gen Y'ers Look For Mobile When Choosing Banks: Poll
Mobile is a standard ask now, so any banks without it are immediately off the table. From there, rewards are definitely important when sizing up which bank to open an account with. We are no longer in the days of free toasters and microwaves or whatever, we want miles and cash back and concert tickets. Banks can be pretty stingy in this area so it's definitely a way to differentiate, and something credit unions may want to look into considering that 30% figure :-/
Becca L
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Becca L,
User Rank: Author
4/27/2014 | 9:32:07 PM
re: Gen Y'ers Look For Mobile When Choosing Banks: Poll
"30 percent of these Gen Y consumers say they donGÇÖt use a community bank or credit union because theyGÇÖve never thought about it." Does anyone else feel that's a little depressing?
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
4/24/2014 | 1:51:52 AM
re: Gen Y'ers Look For Mobile When Choosing Banks: Poll
Sounds like bigger institutions, direct banks and new players like Moven will have an advantage going forward with Gen Y'ers. That kind of makes me sad though as I think credit unions and community banks can provide a great experience and are an important option to have for consumers. I've kept a credit union account for a long time and am a pretty big advocate of credit unions, so this sounds like bad news to me.
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