THE rapid pace of technological change has not only created many trends like cloud computing and big data that have altered the business world, but also created a whole generation of people who have never known a world without computers and the internet.
Also known as Millennials or Generation Y, they use apps to buy transport, food, accommodation, fashion and beauty, and consequently, expect the same technology-driven convenience when it comes to customer service and communication from their banks.
The oldest of the Millennial generation are hitting their forties and the youngest are 21 years. They represent 14 million consumers or 27% of the South African population.
The same money problems
Like everyone else, Millennials struggle with poor credit scores because they’re young and haven’t established high-paying careers or are still studying or paying off business or study loans, so they are not able to accumulate enough earnings to invest in assets.
Many Millennials are in the unfortunate position of dealing with the accumulated financial problems caused by older generations.
Aiming at the youngest
In order to connect with younger people, banks are focusing on teens or preteen children between eight and 12 years, to get them to open savings accounts and groom them through their teenage years into later adulthood.
Adapt or die
Financial service providers who fail to adapt to the ever quickening pace at which technology is improving and innovating tools and society will be thrown aside.
It is predicted that artificial intelligence will upset banking and other financial services as app-based, ride-hailing services like Uber and Taxify did to the older metered-cab taxi industry.