Are young people better prepared to harness open banking?
Youth, a heavenly treasure. But how can it be managed? According to several studies, young people do not go to bank branches. Eight in 10 almost never go there, says Accenture.
At the moment, 25% of bank customers are between 18 and 34 years old. They are more aware of the value of personal or commercial data and more used to working in platform environments where the "best loved brands" do not have as much weight as the user experience they offer. These articles talk about the challenges faced by banks to meet the expectations of younger people:
A good portrait of the relationship between millennials and the banks, and some key insights about this generation as regards the financial sector and their impact thereon. It contains revealing data such as the 36% decrease in the number of active branches within the next five years and the 121% increase in mobile transactions.
In general, millennials are more prone to share their data than previous generations. The preferences of millennials, the implementation of directive PSD2 and the technological capability to develop complex services for any type of customer point to a positive future for open banking.
A survey asked more than 300 European bankers how they see the future of open banking with millennials as their main customers. 93% of respondents believe that open banking will bring a deluge of new customer data that will revolutionize how analytics will be used to create more customer-centric financial services. 73% believe that predictive analytics and machine learning will become the most powerful means through which to win bank customers over the next five years.
This analysis focuses on the climate in Spain and looks at the willingness to take out financial products with providers outside the banking sector. The likelihood of this happening increases substantially the younger the respondents are. This interesting text tries to find out how Spanish banks are reacting to this phenomenon.
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