Banks and credit unions can use ATMs to supplement customer service and provide an additional offering. This could allow institutions to engage with demographics that need more information on financial literacy.
Millennials are highly tech-savvy and generally educated. However, a study from Filene Research Institute revealed that Generation Y is somewhat uninformed about financial concerns. Although 74 percent reported that they were good at dealing with everyday financial matters, such as balancing a checkbook, managing credit cards and tracking expenses, only 24 percent were able to correctly answer 3 out of 5 basic questions about mortgages, inflation, numeracy and risk diversification. Only 8 percent of survey respondents answered all five questions correctly.
Gen Y is known for being college-educated, but with this comes a great deal of student loans. In fact, two-thirds of millennials have at least one source of long-term debt. Many members of this generation were concerned about their abilities to pay off their loans, but the researchers suggested that young adults' attitudes of financial overconfidence could prevent them from making smart choices.
Banks and credit unions need to target millennials, customers on the go
Financial institutions should seek members of Gen Y as potential customers. Banks and credit unions can develop resources to improve millennials' financial literacy levels, according to Credit Union Times. The study suggested that targeted educational materials may be more effective for reaching this demographic, such as specific information on student loans, mortgages and credit cards.
ATM offerings are another service that help financial institutions meet the needs of more customers on the go, making services more convenient for a larger client base. As individuals continue to use cash, banks and credit unions can make withdrawals easier for customers by creating more ATM locations.
June 10, 2014