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SINGLE ORIGINATION PLATFORMS FOR LOANS AND ACCOUNTS ARE LENDERS’ GOLDEN TICKET A single system allows lenders to ramp up their cross-selling efforts, deliver a seamless account opening process, and eliminate the service gaps that lower net promoter scores. learn more Close The Financial Brand - Banking Trends, News & Insights Subscribe Free Articles Banking Trends & Strategies Digital Banking Customer Experience in Banking Banking Innovation Bank Marketing Digital Marketing in Banking Fintech Banking Payments Trends Buy Now, Pay Later Digital Transformation in Banking Banking Technology Data Analytics in Banking Artificial Intelligence in Banking Branch Design Bank Culture Gen-Z Banking Millennial Banking Forum 2022 Forum Homepage Featured Keynotes Registration Info Sponsors & Exhibitors Forum+ Video Channel Webinars All Banking Webinars Marketing: Perks, Potholes and Pitfalls 5 Ways Automation Moves FI’s Forward, Faster Originate 20% More Checking Accounts Harness the Power of Intelligent Automation Reports View All Banking Reports Banking Podcasts Resources List of Digital Banks Social Media Ranks in Banking INSIGHTS Digital Magazine Vendor & Supplier Directory Bank & Credit Union Slogans Clicks vs ROI: Learn the Truth of Effective Email Marketing learn more ( sponsored content ) ( SPONSORED CONTENT ) TRENDS IN DIGITAL ACCOUNT OPENING To deliver the changes desired, strategic alliances and partnerships are suggested to simplify business operations, utilize data, improve revenue, and enhance CX. Learn more in this report. Read More about Trends in Digital Account Opening ( SPONSORED CONTENT ) TOKEN-BASED API'S: THE FASTEST, MOST SECURE, AND MOST RELIABLE CONNECTIVITY The most innovative banks, credit unions, and fintechs are providing their customers a fast, secure, and reliable way to connect financial accounts. Read More about Token-Based API's: The Fastest, Most Secure, and Most Reliable Connectivity ( SPONSORED CONTENT ) DISCOVERY2022 REGISTRATION OPEN Join us on August 11 for Discovery2022 - a free conference offering inspiration for your strategic planning. Connect on strategy. Reconnect with colleagues. Register Today! Read More about Discovery2022 Registration Open MILLENNIAL MARKET SHARE: HOW BANKS CAN GRAB AN UNFAIR ADVANTAGE A huge gap exists between the need of Millennials for financial guidance and the skills and resources of bankers to provide it. That leads to bad experiences that hinder growth. With Millennials now the largest demographic group and in their prime earning years, banks need to find ways to close that gap before others do. Here's how they can do it. By Anand Subramaniam, SVP of Marketing at eGain * LinkedIn * Tweet * Share * Email * Print Subscribe Now! Stay on top of all the latest news and trends in banking industry. Email(Required) Untitled(Required) I accept the Terms & Conditions and Privacy Policy. Born between 1981 and 1996 and numbering over 75 million, Millennials have become the largest demographic group in the U.S., according to the Brookings Institution. Millennials are better educated than any other group and are entering their prime earning years. Banking and financial services companies that acquire and expand wallet share with this group will be positioned for market dominance in the new decade. THE MILLENNIAL OPPORTUNITY Millennials didn’t have it easy, growing up amid financial and global upheavals — 9/11, the dot com bust, the Great Recession. No wonder they are in financial doldrums: * Millennial wealth levels were 34% below what they would have been without the Great Recession of 2008, making them the slowest cohort to recover from the downturn, according to the Federal Reserve. * They have the highest student loan debt, twice the average of Gen X, Experian notes. * 53% have credit card debt and only 36% have a retirement account, per a GFLEC study. Among those with retirement accounts, 31% are borrowing from it or raiding it for cash. * Only 30% of the Millennials are home owners, according to SmartAsset Report. Moreover, they have to pay 39% more than boomers to buy their first home, while dealing with soaring rents. It can take them nearly a decade to save for the 20% down payment needed for home purchases. There’s more. Only 24% of Millennials have basic financial literacy and a meager 8% have advanced financial literacy, the lowest among all generational groups, GFLEC says. This is not a surprise, given that only 12% of Millennials have sought financial advice for debt management and 27% for savings and retirement, PwC reports. All that said, Millennials are the largest and the most educated demographic group. This presents a huge opportunity for forward-thinking banks and credit unions to gain market share through personalized advice and guidance. LOOKING FOR SUCCESS: GEN Z IS TEMPTING FOR BANKING, GIVEN THE GENERATION'S FRESH EYES AND WALLETS. YET MILLENNIALS ARE SO FAR THE LARGEST AND MOST EDUCATED GROUP — DON'T FORGET THEM. STATE OF BANKING SALES AND GUIDANCE Selling to Millennials presents a critical imperative and a compelling opportunity, but banks struggle with a wide variation in sales performance. Per the Boston Consulting Group, top sales reps in retail banks perform eight times better than the bottom reps in sales conversion and new account acquisition. We list some of the reasons for this. * Financial products keep proliferating at a rapid pace. * One needs a PhD to understand financial concepts, products, features, and regulations — loan amortization, debt to equity ratio, compounding, digital services, and so on. * Millennials and Gen Z, an increasingly growing part of the sales workforce, turn over at a faster rate than older workers. * Millennials and Gen Z have short attention spans. While Millennials have an attention span of 12 seconds, Gen Z has a “gnat” attention span of eight seconds, reports cultural intelligence company Sparks & Honey. They also hate training, preferring to “learn on the job” instead — 65% of Gen Z say so, according to Capita. Verbatim: What financial services executives say about the state of sales “We have a structural problem. Most of our young, financially struggling customers never encounter a banker skilled enough to help them. All the best bankers are decked against the affluent segment.” “Every bank is worried about inappropriate sales practices and being the next Wells Fargo.” “I have to be honest, most of our branch bankers are just order takers. We spend lots on training to move beyond that, but so far, we have not succeeded.” “Our bank’s strategy is to advise our customers. The problem is we have not yet equipped our bankers to successfully deliver the strategy.” It is evident that most banking sales reps have become either brute-force product pushers or passive order takers. Apart from generating bad publicity and mistrust in professional financial advice, they are also missing the golden opportunity to grab Millennial market share by getting them from woes to wellness with personalized advice. TRANSFORMING FINANCIAL SALES AND ADVICE You may have seen this with Uber and Lyft. Any driver is able to take you from Place A to Place B regardless of his or her navigational skills, thanks to GPS-enabled, real-time driving guidance. Likewise, in-band guidance during the sales interaction, powered by artificial intelligence and knowledge, provides step-by-step real-time conversational guidance to agents, making all sales agents — even novices — as good as the best. Such AI-powered tools facilitate quality sales conversations that can be scaled cost effectively. More specifically they automate conversations through a “banker bot” and augment agents, in the case of human-assisted advice, across channels, including digital, call center and branch. That enables consumers to easily switch across channels during the course of conversations. Sales agents in turn have an omnichannel view of customers. Unlike rigid scripts and brittle decision trees that break down when the customer takes the conversation in an unexpected direction, an AI-powered platform adapts to the conversation and, in some cases, can work with incomplete or imprecise data. This level of capability makes financial guidance and coaching available to price-sensitive, digital-first Millennials. AI-GUIDED SALES AND ADVICE AT WORK Let us take the case of getting Millennials ready to buy a home. The AI advisor will guide the assessment session to recommend a prioritized action plan to the customer with successive next best steps (reducing debt, increasing their credit score, or saving for a larger down payment). The bot will also check in with customers as they execute their plan, encouraging progress and celebrating success. The process repeats until the customer is ready to buy a home and eager to discuss mortgage options. In other words, the real-time assessment guidance and ongoing coaching creates demand for the financial institution’s mortgage offerings. This article was originally published on April 7, 2022. All content © 2022 by The Financial Brand and may not be reproduced by any means without permission. SIGN UP FOR THE FINANCIAL BRAND'S EMAIL NEWSLETTER Get the best articles from The Financial Brand — with big ideas and actionable insights — delivered straight to your inbox. * Email Address* Enter Email Confirm Email * Your Name* First Last * Hidden Your Company * Type of Organization* * Bank * Credit Union, Co-op, Building Society * Vendor, Ad Agency, Consultant, Analyst, Solutions Provider * Other * Consent Granted* * I give The Financial Brand permission to send me newsletters, updates about the Forum conference, invitations to webinars, and emails from partners like the Digital Banking Report. Read The Financial Brand's privacy policy. * * Phone This field is for validation purposes and should be left unchanged. Featured Webinars Jul 06 Marketing Perks, Potholes and Pitfalls Jul 13 5 Ways Automation Moves FI’s Forward, Faster Jul 20 Originate 20% More Checking Accounts Jul 27 Harness the Power of Intelligent Automation On-demand Webinars Watch Now Re-Engaging Dormant Customers Watch Now Building a Better Digital-First Bank Watch Now Using Customer Centricity to Fuel Growth ( SPONSORED CONTENT ) GROWTH IS YOUR FUTURE. Play an active role in helping your members protect what matters most and plan for something brighter. Read More about Growth Is Your Future. ( SPONSORED CONTENT ) MEET MAGIC JOHNSON AND JAY LENO AT THE FINANCIAL BRAND FORUM! The all-star lineup at banking's best conference — packed with celebrity keynotes and world-class speakers from Apple, Disney, Southwest Airlines, Pixar and much more! Read More about Meet Magic Johnson and Jay Leno at The Financial Brand Forum! ( SPONSORED CONTENT ) AUTOMATE OR DIE HIRING: 5 WAYS AUTOMATION MOVES FI’S FORWARD, FASTER How are financial institutions staying competitive in the wake of the labor shortage? Automation of manual labor. Learn more in this webinar. Read More about Automate or Die Hiring: 5 Ways Automation Moves FI’s Forward, Faster ( SPONSORED CONTENT ) BUILD A WINNING RETENTION STRATEGY WITH INTELLIGENT AUTOMATION Powering onboarding, reboarding, and retention strategies through the right technology can empower your institution to deepen customer relationships and create customers for life. Read More about Build a Winning Retention Strategy With Intelligent Automation THE FINANCIAL BRAND SubscribeAboutForum+ VideosContact UsPrivacy Policy & Terms ADVERTISE Display AdsEmail AdvertorialsWebinarsCustom EmailsPodcasts RESOURCES List of Digital BanksWebinarsBanking PodcastsBanking Reports & White PapersSupplier Directory © 2022 THE FINANCIAL BRAND Check out The Financial Brand on LinkedIn Check out The Financial Brand on Twitter Check out The Financial Brand on LinkedIn Check out The Financial Brand on YouTube * * * * * Notifications