Gen Y choose big brands
According to research company, Datamonitor, 74.2% of Gen Y prefer using the big four banks for savings and transaction accounts.
The study, ‘Australian Consumer Deposits 2010′ found two primary reasons for Gen Y preference. Younger consumers are drawn in by convenience – the big four banks have a larger presence than smaller banks with more convenient branch locations and more ATMs.
Furthermore, Gen Y are more receptive to the special offers presented by the larger banks. The study found that they were twice as receptive to special offers than Gen X (31-50).
According to Datamonitor, the next key challenge for financial institutions in targeting Gen Y is to overcome their low level of loyalty in banking.
Harry Senlitonga, senior analyst at Datamonitor said, “Gen Ys are up to five times more likely to switch their transaction account than older generations. This indicates there is a strong need for deposit providers to offer incentive scheme to increase levels of customer loyalty within the institution,”