Individuals between 22 and 37 are less likely than any other age group to use the services of their town or city’s bank. As a result of individuals turning to technology instead, the Wall Street Journal reports that more than 1700 branches of banks were closed in the US, between June 2016 and June 2017 – the fastest decline ever recorded. Instead, millennials are opting to use fast and efficient peer-to-peer payment services to make their transactions and to keep their finances in shape, and the older generation are expected to follow suit.
Smart Technology
With smartphones being so affordable and readily available, it’s no surprise that they are millennials’ prefered choice of technology when banking. Being able to check your finances, make a payment day or night, and seek contact with an customer service agent is convenient when you’re constantly on the go, or working long hours with very little down time. Voice activated personal assistants are also on the way up among the nation’s younger peer group, with 76% of individuals, between 25 and 34, stating they would use theirs to make payments or purchases.
Quick & Simple Process
Waiting to speak to an adviser either at your bank’s branch or on the phone is far from ideal. Millennials live a fast-paced life and third party verification and time consuming two-factor authentication do not meet the needs of this lifestyle. Making payments via Zelle and cryptocurrencies, such as blockchain, eliminate the need for these additional checks, and allow you to send any sum to anyone, anywhere in the world in the blink of an eye. The younger generation can benefit even further by opting for cryptocurrency over traditional banking as blockchain systems allow you to view your financial history easily, so when you’re applying for a bank statement mortgage loans, the technology can be used to prove you’re capable of repaying the funds.
A Growing Trend
The TSYS 2017 consumer study report revealed that 45% of millennials had used a peer-to-peer payment service at least once in the previous year, while only 16% of seniors had utilized them. Gavin Rosenberg of TSYS told PYMNTS.com that he believes that older consumers will soon follow the lead of the younger generation and will start to use peer-to-peer money services more frequently. Zelle, one of the latest P2P apps, is supported by multiple banks, and with millennials raving about the positive impact it’s had on their lives, older generations are sure to make the most of this technology as well, which will further impact the banking network.
Traditional banking is being shunned by millennials who seek faster and more efficient methods of banking. Smart technology in the form of smartphones and automated intelligence are leading the way in this generation of technology-obsessed individuals, although, it’s anticipated that seniors will soon follow suit and opt for modern ways of managing their finances.
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