Mahalo Banking Blog | The latest trends in financial data

Improving mobile banking for millennials

Written by Denny C. Howell | May 7, 2018 7:00:00 AM

The future of banking is mobile.

Millennials are constantly connected with the world through their phone. They now expect this level of accessibility from all companies in exchange for their loyalty. Many industries have taken heed to this viral trend, and banking is on its way to keeping up with this demand. Right now, mobile banking is expectedly used more by millennials than any other demographic. While nearly 75% of millennials consider themselves at least somewhat reliant on mobile banking for tasks including checking their balance, paying bills and depositing checks, there are still some limitations that hinder the true possibilities of this digital service. Here's what millennials have to say about the current state of mobile banking, along with ways that credit unions can improve the mobile banking experience for digitally savvy members:

More than 25% of millennials are dependent on a mobile banking app for day to day financial tasks.

Members are expecting more freedom than ever before to do what they need from wherever they are located. While customer service continues to be a driving force of customer acquisition and loyalty, digital customer service has become just as important as face-to-face service at branch locations. Customer service is no longer just based on a teller's kindness and efficiency. It is now equally based on the seamlessness and ease of the bank's mobile application. By making usually strenuous and time-consuming tasks both easy and safe for members, credit unions are likely to keep up with competitors and boost long-term member loyalty.

Over 75% of millennials agree that it's beneficial and convenient for banks to offer full service via mobile banking.

While Baby Boomers and older demographics may be concerned about the safety hazards of completing financial tasks through a mobile app, millennials collectively agree that this is a safe and extremely easy way for them to manage their finances. Young consumers are looking to do financial tasks immediately with limited hassle and questions asked. Although their safety expectations are equal to older generations, their familiarity with technology makes them more trusting that it is capable of being a safe option to complete their banking needs.

More than 50% of millennials want SMS notifications from their banks.

What better way to communicate with an audience who is constantly on their phones than sending them a direct text message. Money management is an important topic for millennials; important enough that they want immediate details about actions happening on their account. This includes alerts for when a transfer clears, an overdraft fee has been charged, a check bill is paid, and much more. While many members prefer SMS notifications, nearly 30% of millennial members would prefer push notifications to SMS messages.

The needs and expectations of members are constantly shifting with the advancement of technology and it's more important than ever for credit unions to move with them as well. While credit unions have a great traditional model that is highly rooted in a local business mentality, this mindset must be matched with technological power that is strong enough to meet the ever-changing, high demands of members' evolving expectations.

To see and hear more about what Mahalo Banking is doing, please request a demo at www.mahalobanking.com

Mahalo!