MILLENNIALS, which are essentially a market aged 21-37, represent a vast percentage of consumers in Namibia, and are arguably the most dynamic and prominent banking consumer base out there.
Imperatively further, millennial consumers are the dominant force in the marketplace; wielding 55 percent spending power worth billions of dollars per annum – more spending power than any generation before them. In this regard, it is pivotal that the local banking sector and other financial service providers fit in with them, not the other way around.
Young Namibians now want to be at the forefront of making smart financial decisions that are customised to their daily needs. For Millennials, it’s a case of one size does not fit all. In fact, the desire to have a unique banking experience that resonates with their lifestyles has become a priority for this generation, and most importantly, is fast becoming the foundation of a long term relationship with a bank that tailors its offerings to their needs.
The process of finding a trusted financial partner at this stage of life is an important one that will influence long-term spending habits, their ability to save, spend and invest; and the type of relationship that an individual will have with money as an adult. So being able to provide banking options to a progressive audience, informs what the future of banking will look like.
Financial services providers must adapt to the rapid pace at which things are evolving, especially on the digital and customised solutions side of things.
In 2016, the Sun newspaper reported that social media in Namibia had emerged as a leading source of news among online users who increasingly access it on their smartphones.
Quoting the Reuters Institute for the Study of Journalism (RISJ), the daily paper went on to say that more than half of online users get their news from Facebook and other social media platforms. This factor has influenced the most powerful tool that Millennials use in this day and age – information sharing. It has contributed to content personalisation and a culture of instant communication, not just with their peers, but access to other news sharing platforms.
Social media plays a pivotal role in increasing financial literacy and planning as it allows Millennials to be proactive, and provides them with another channel to consume information and access online banking services from anywhere, at any time.
The entry-level banking solution for young people must influence the culture of saving and financial literacy, from early on. In addition, it should cater to those who have just opened their first account and do not have the financial capacity to deal with extra monthly banking fees, card swiping fees or ATM cash withdrawal charges.
In totality, traditional bank survival depends on adaptation of new technologies and the ability to respond to the demands of the digital world and digital consumer – not just the millennial or “tweenager”. It’s vital to see the difference between the demands of the future customer and the previous generations to create an effective business strategy and also to understand it. To win their loyalty, banks must do more than deliver a solid experience and high-quality services.
Confidente. Lifting the Lid. Copyright © 2015