Technology Key to Bridging the Gap Between Millennials' and Baby Boomers'
Banking Needs, Reports Microsoft Study
Half of millennials embrace the Web, while only a third of baby boomers prefer
to bank online.
BOSTON, Nov. 3 /PRNewswire-FirstCall/ -- As retail banks struggle to recapture
customers in the wake of the global economic crisis, emerging generational
differences in the way consumers wish to bank will require financial
institutions to adapt to the divergent needs of their customers, reports a
study released today by Microsoft Corp. at the BAI Retail Delivery Conference
& Expo.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO)
The Microsoft "Millennials and Baby Boomers Banking Channel Preference Survey
2009," conducted by Washington, D.C.-based KRC Research, found that adult
millennials (ages 18-29) and baby boomers (ages 45-63) prefer very different
channels for their banking activities. These preferences vary from high-touch,
in-person experiences at the branch to more automated experiences on the Web,
on mobile phones or at interactive kiosks.
"Generational differences are a challenge for banks as they try to create
consistently positive, integrated banking experiences, regardless of channel,"
said Colleen Healy, general manager, U.S. Financial Services, Microsoft.
"Banks are building loyalty with boomers today primarily through in-person
retail branch interactions, while creating new offerings via online and mobile
channels to attract millennials, the next generation of customers. Microsoft
is focused on helping banks create this seamless, connected experience across
multiple screens and channels, tied together through cloud computing."
Varying Channel Preferences
The Microsoft study shows that different generational groups of respondents
have very different preferences for conducting banking transactions.
Millennials represent an untapped customer base for banks, but they have
specific high-tech needs in terms of how they communicate and network with
their financial institutions. For example, they are much more likely than baby
boomers to use Web banking (49 percent versus 35 percent) and to find online
service capabilities to be very important when researching a new bank (54
percent versus 42 percent).
Baby boomers, on the other hand, are much more likely to prefer banking
transactions in person at a branch (44 percent versus 32 percent), and half
(50 percent) report that they never bank via the Web using a personal computer
or phone browser.
Millennials and Baby Boomers Find Common Ground on Bank Criteria
While generational gaps in banking channel preference exist, both millennials
and boomers found similarities in their criteria for choosing a new bank.
Customer service ranked as the highest priority for both millennials and
boomers (98 percent versus 96 percent), followed by rates and fees (97 percent
versus 96 percent) and superior security against identify fraud (96 percent
versus 95 percent). Also ranking high were access to bank retail branches (95
percent versus 94 percent) and insurance on deposit accounts (92 percent
versus 92 percent).
About the Survey
Washington, D.C.-based KRC Research conducted the Microsoft "Millennials and
Baby Boomers Banking Channel Preference Survey 2009" Aug. 23-30, and garnered
responses from more than 600 adult millennials between the ages of 18 and 29
years old and baby boomers between the ages of 45 and 63 years old. The full
results are available at
http://www.microsoft.com/presspass/presskits/msfinancial/Default.aspx.
About Microsoft in Financial Services
Microsoft's Financial Services Group provides software that helps financial
firms transform the customer, employee and operations experience so they can
maximize opportunities for increased market share and profitability. Microsoft
software helps empower people and IT staff within financial firms -- and
across key focus areas such as advisor platforms, channel renewal, insurance
value chain, enterprise risk management and compliance, and payments. Through
a combination of Microsoft- and partner-provided solutions, customers enable
their employees to turn data into insight, transform ideas into action and
turn change into opportunity.
More information about Microsoft's Financial Services Group can be found at
http://www.microsoft.com/financialservices.
About Microsoft
Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software,
services and solutions that help people and businesses realize their full
potential.
SOURCE Microsoft Corp.
Matt Pennacchio of Ruder Finn, +1-212-715-1613, pennacchiom@ruderfinn.com, for
Microsoft; or Caitlin McCabe of Microsoft, +1-646-220-2261,
cmccabe@microsoft.com
