Ebook cibbva innovation trends millennial generation

26 Pages·2015·2.5 MB·English

THIS IS THE FIRST
DIGITAL GENERATION
MILLENNIAL
GENERATION
01 Life through 03 INFOGRAPHIC 05 Flexible and
the screen These are the productive working
millennials hours, millennials bet
02 04
Millennials, a challenge Brands are out to win
for the banks over the Millennials
INNOVATION TRENDS SERIE
01
Life through the screen
All eyes are on them: a group of 80 million people in the United States
and somewhere over 51 million in Europe, who by 2025 will represent study by Forrester. They are
75% of the world's workforce. 81% have a profile on Facebook and constantly immersed in social
83% sleep with their cellphone. ( ) networks and mobile
technology.
The first completely digital clear leader with 95%, followed
generation live their lives by Facebook (65%) and Technology, in turn, is carefully
addicted to WhatsApp. YouTube (44%). monitoring this generation Y
According to this study by (those who today are aged
Cambridge University Press The so-called millennial between 18 and 33), as proved
carried out in Spain, almost half generation (all those young by the thousands of studies on
of them spend one hour a day people who reached adulthood their habits to be found on the
and 14% almost three hours a with the change of the century, Internet. According to the
day. When asked which social in 2000) spend several hours a consultants Deloitte, they will
network they use most on a day online, and over 25 a represent 75% of the world's
daily basis, WhatsApp is the week, as highlighted by this workforce.
They have the following defining features:
They're digital natives. They Multiscreen and multi-device.
prefer the Internet to They use multiple channels and digital devices for their activities. They
conventional television. 59% have the capability and the need to do various things at the same time.
watch films on the Internet, and In the United States, according to Nielsen, the number of television
46% on television and on hours consumed by the segment aged between 18 and 24 declined by
Internet too, a significantly almost one hour a day, and seven out of every ten Spaniards wants total
higher proportion than in other freedom to watch videos at any time and in any place. Verizon highlights
age groups. that the millennials triple the consumption of online television.
Nomophobes and appdicts
This is the way this article in Forbes defines it: their life is their
cellphone, and their main access screen to the Internet is now a
mobile screen. 78% of the millennials in Latin America have a
cellphone (up 10% since the previous year), 37% have a tablet, 70% a
laptop and 57% a desktop computer, according to Telefónica Global
Millennial Survey 2014. They are addicted to their cellphones, they
feel the need to be constantly connected and 45% admit that they
could not live without their smartphone for a single day. Demand from
the millennials is driving the extraordinary growth in mobile apps (5
million app downloads are recorded on the Appstore every day).
Social and connected. ( )
They're extremely social. The super-connected millennials consider
themselves better prepared for their working life at the end of their
degrees and even score higher in their leadership skills (32% as opposed
to 16%), as shown in this study by Deloitte.
Critical and demanding. ( )
They're much more critical,
demanding and volatile. In fact
86% of today's consumers
declare that they would stop
doing business with a company
if they had a poor customer
experience, compared to 59%
four years ago. And for the
millennials, negative digital
experiences online and on
mobile devices have a much
greater negative impact than on
other age groups.
Coca-Cola (6%) and Microsoft
Deloitte points out that “Google (5%) ranked immediately after,
and Apple were chosen by 11% followed by Samsung (4%).
Finally we should highlight their of the Millennium Generation Technology wants the
“technological dependence” from among the companies millennium generation, and
even in the world of work. This that are most closely identified they too are keen to work
study by the consultants with the concept of leadership. in technology companies.
02
Millennials, a challenge
for the banks
33% of Americans in the so-called millennium generation believe
they will no longer need banks in coming years. In view of these
data, capturing customers from among this new generation is
shaping up to be a major challenge. ( )
“71% of American millennials is, anyone born between 1981
would rather go to the dentist and 2000) carried out in the
than listen to what banks are United States highlights that 53%
saying”. This phrase from The don’t think their bank offers
Millennial Disruption Index shows anything different than other
how little love is lost between banks, and that one out of every
banks and a generation. The three millennials is willing to
study of 10,000 millennials (that switch banks.
“This generation can see they don't really need
the financial sector –they've lived through the
economic crisis and they believe that part of
the blame for this crisis can be laid at the door
of the banks. But this is not the only idea that
distances them from banks. There is also the
fact that they have been born with technology
and demand a very good user experience from
any company.”
Rodrigo García de la Cruz
Professor at Instituto de Estudios Bursátiles,
According to the professor, number of clicks, and with the utmost simplicity;
“millennials are digital natives, companies have to work hard if Amazon allows you to buy
and they look for absolute to overcome the technological things with a couple of clicks,
simplicity with technology, complexity involved in making a the banks should also make
they're used to accessing transfer or browsing websites. sure the user feels completely
everything with the minimum They must offer their products at home”.
68% of the millennium order to approach this financial sector”. The Millennial
generation in this study believe segment, the banks should take Disruption Index points out that
that in five years the way of into account that they are “fans 73% of the respondents would
accessing money is going to of certain companies. If Apple be more receptive to any
change, and 70% think that opened a bank, it would have financial services that might be
payment methods will be totally 37 million customers on the offered by Google, Amazon,
different. 33% think they will no first day. Apple doesn't have Apple, Paypal or Square than
longer need a bank. The customers, it has admirers, and by their own banks.
professor points out that in that doesn't happen in the
Apple doesn't have customers, it has admirers,
and that doesn't happen in the financial sector
The advantages of the capturing new customers”. demand that banks should have
millennial customer( ) This article in the New York social responsibility, maximum
Times highlights that this transparency and values.
But not everything about this generation, unlike the boomers
generation means bad news for (now aged between 50 and The millennials work for
the financial sector. García de la 60), downplay work –for 25% it something more than just
Cruz points out that banks is the cornerstone of their lives, money, and that's why they're
should “exploit the fact that whereas for boomers this doubly demanding with the
millennials are used to percentage rises to 39%–, and financial sector: as employees,
surrendering their data without when combining work and free because they're going to
any resistance without a second time they emphasize that their demand that companies
thought, and have a much time is “theirs alone”. “This is a manage their talent in the best
lower perception of risk than very well-educated generation possible way; and as
other generations, which with very clear ideas. customers, because they look
benefits companies and banks for added value. We shouldn't
by making it easier to learn They are not willing to work at forget that this is generation
about their preferences. This just anything, they believe that is loyal to experiences
information is very important companies should generate rather than brands”, concludes
for designing strategies for values, and that's why they García de la Cruz.
Commitment to mobile banking ( )
Another important point for banks is the role of
mobile devices in the lives of millennials –these are
digital natives who have grown up in the age of the
Internet, smartphones and social networks and are
looking for a simple and easy relationship with the
bank using these tools.
The study by Gemalto entitled Generation mBanking
highlights that 94% of millennials have a cellphone,
42% have a tablet and 38% have both devices. 32%
claim never to have stepped inside a bank and 62%
say that at least once a month they use an online
banking service via their phone or tablet.
27% would prefer not having a bank to not having a
cellphone. PwC's Global Digital Banking Survey points
out that mobile banking users will increase by 64%
through to 2016; and those who bank through social
networks and online banking will also rise by 56%
and 37% respectively. Users of traditional channels
such as branch offices or telephone banking will fall
by 25% and 13%.