THE rapid pace of the technology revolution has created many trends like cloud computing and big data analytics which are changing the business world.
But the effect on humans is being felt by an entire generation. Millennials or Gen Y are the world’s first digital natives. They have very different expectations of banking and spending.
Millennials use apps for transport, to buy food, rent accommodation, for fashion and beauty and they expect the same convenience from customer service.
Millennials are aged 21 to 37 or so and represent 14 million consumers – 27% of the South African population. They are arguably the most dynamic and prominent consumer base out there.
In order to connect with young people, a bank needs to be able to walk with them from the moment they are tweens – eight to 12 years old and need to start a savings account – through to the teenage years and young adulthood when they who need to make serious decisions about their future.
Adapt or die
The 2018 SA Social Media Landscape report shows that Facebook is now being used by 29% of the population, and with no less than 16 million South Africans using Facebook and 14 million of these people are using their cellphone and tablet computers to do so.
Social media plays a pivotal role in increasing financial literacy and planning as it allows Millennials to be proactive, and provides them with another channel to consume information and access online banking services from anywhere, any time.
Survival of the fastest
Bank need to adapt to new technology to survive. The ability to respond to the demands of all digital consumers and not just the Millennial or the generation after.