Over the next ten years, the United States will experience an immense transfer of wealth from older Americans to largely Millennials, Generation Z (Gen Z), and Generation X (Gen X). $16 trillion to be exact. Wouldn’t you want your financial institution to retain or acquire a piece of that pie?
These consumers are about to inherit the greatest transfer of intergenerational wealth, which is a huge opportunity for financial institutions to capture deposits and establish life-long relationships. But winning trust and loyalty comes with diligence and commitment to meet the expectations of these generations. According to Alkami’s primary research, 48% of Gen Zs and Millennials have had such a bad digital experience with a financial provider that they opened a new account with another. Meaning if account holders are dissatisfied with your digital experience, they will look elsewhere, most likely without closing their existing account – opening the door to silent attrition.
Many consumers leverage a multitude of financial relationships to manage their finances. They turn to different providers to deposit their paycheck, manage their budget, check their credit score, invest, make person-to-person (P2P) transfers, monitor their home value, purchase via buy now pay later, and more. With each provider offering a niche solution, consumers have grown accustomed to a network of providers. However, each of these disparate relationships is targeting your hard-earned account holder with enticing competitive offers. Rather than letting millennials and Gen Z leave your institution, financial institutions must deploy a strategy to prevent “ghosting.”
To inform retention efforts, The Financial Brand recommends that banks and credit unions:
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