Retail banks have a responsibility to the youth of today!

Retail banks need to attract young customers to their products and services to ensure the future health of their businesses. They also have a responsibility to this crucial audience. Banks play an important role in young people’s lives, helping them manage their own resources, develop financial skills and even encourage entrepreneurship. As such the FCA has issued guidelines on smarter communications to ensure banks are providing clear information to their customers.

While many banks are trying to do this, it is evident that the communication strategies currently in place to target the youth audience are out of date and need revising.

Younger customers threaten the traditional sector

Compared to previous generations, young customers have distinct preferences about the way they manage their finances, heavily influenced by digital technology and social media. This has increased the competition banks are facing. Threats to the traditional sector come from all angles, not just from challenger banks that are born from digital, but from tech companies such as Apple Pay. Social networks themselves even have simple money transfer services e.g. Facebook Messenger, that are often more appealing to this audience.

What we found out…

We carried out our own research and found that the social media experience offered by UK retail banks is not meeting the requirements and indeed expectations of the youth audience. They clearly need to rethink their strategy in order to remain competitive and relevant to younger customers.

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