Banks are improving their social media efforts and providing more alerts via texts or emails to garner more retention from Millennials.
While Millennials are drawn to websites that are easy to access from their smartphones and rely upon texts to alert them to current balances and purchases, they still opt to speak to bankers about savings or obtaining a car loan.
Bridging the gap between Millennials and what they are seeking for their financial needs has not been an easy task for banks. Gen Y has demonstrated their preference for favoring certain companies when it comes to food, restaurants and electronics and banks are aiming to become part of that mix.
Regulatory pressure and a stagnant economy for several years had resulted in financial institutions who have been "having a harder and harder time meeting revenue and profit goals," said Kimberly Myszkewicz, a marketing manager for RateWatch, a Fort Atkinson, Wis.-based premier banking data and analytics service owned by TheStreet, Inc.
"By focusing efforts on attracting Millennials, they hope to benefit from a generation with strong brand loyalty and be the choice for mortgages, car loans and small business loans in the near future and long term," she said.
As the use of social media becomes even more commonplace, 96.2% of banks said they focused their advertising and marketing efforts on Facebook while 45.63% on Twitter, 39.16% on LinkedIn, 27.76% on Instagram and 17.87% on Google Plus, according to a survey conducted by RateWatch in June with 458 respondents.