Young people today are opinionated. They crave customization from brands and live much faster lifestyles than their parents did. It’s about time the banking industry understood that this new generation doesn’t respond as well to the old methods.
Jeremy Soo, the Managing Director & Head of Singapore’s DBS Consumer Banking Group, said, “Today’s youth are confident, assertive and vocal. Their lifestyles and needs have evolved with the times and they no longer communicate in a traditional manner.”
DBS Bank in Singapore is reaching out to Gen Y by launching the “I-Designed-A-Bank” contest. By using crowdsourcing, the contest aims to find out firsthand from the younger demographic what exactly they want in a bank. According to DBS, the “youth branch” will be the first Singapore banking model designed to exclusively tailor Gen Y’s needs.
From now until July 30, teams of up to four people can enter the contest in one of two categories. The first is for ages 26 and younger, and the second category is for all ages. The judges, who include representatives from DBS and the design industry, will announce the winners in mid-August. Each category will have three winners, with the cash prizes being SGD 5000 (around $3,500), SGD 4000 ($2,850), and SGD 3000 ($2,125).
I think DBS has a great idea here and made the right decision with offering cash to the winners. It makes me wonder, though, why this concept hasn’t been introduced in the United States yet? It also raises the question, what does Gen Y need when it comes to banking?
The right environment: When Millennials are browsing in a shopping mall, they gravitate toward stores that grab their attention. Drab colors and dim lighting are never the best way to get new customers in the door. A well-lit, upbeat, music-playing bank with a contemporary design would be a welcome change to the stereotypically boring industry.
Awesome customer service: Young people may be less experienced with banking, but going into a branch or talking with a representative about money is still a form of shopping. As with any other retail store or online shopping site, Gen Y expects to interact with friendly, respectful people who can make the banking experience, with its multitude of options, more enjoyable than daunting.
A little education: Even though the convenience of instant, online payments has made paying with a check obsolete today, most Gen Y-ers, hopefully, know how to balance a checkbook. The truth is, though, many members of this generation are dealing with banks without their parents for the first time, and it can be confusing. There’s a lot of bank jargon that Gen Y just doesn’t understand. Banks don’t need to speak to Gen Y like they’re infants, they just need to explain these terms and be honest.
Lots of understanding: I’m not suggesting that banks should condone financial irresponsibility, but there’s nothing more annoying than dealing with overdraft fees, especially when the fees increase if your account balance stays negative for more than one day. I bet more young people would be less turned off by the “greedy bankers” persona some banks portray if the first overdraft fee was waived, or if there were a grace period of some sort. Mobile banking now allows banks to send a text message or an email alert to person whose balance is running low, so extra fees aren’t as much of a problem. It’s an option that can be customized, so whether a customer wants to be notified when the account is at $100 or $10, he or she will always know what’s left.
The retail landscape is constantly changing to meet this generation’s desires. With the addition of banks to that mix, companies will see a higher number of young adults enjoying their banking experiences and spreading positive word of mouth to others.
Hopefully, the DBS contest will prove to be a success in Singapore. If that’s the case, banks in other countries will notice and keep Gen Y in mind when designing new branches and adapting current ones to fit the needs of the younger consumer.
Photo credit: The Financial Brand
There are programs similar to this scattered around the states with Credit Unions called Young & Free. It was a contest to find a Gen Y spokesperson for a credit union with great results. Here's the case study: http://www.forrester.com/Groundswell/talking/co…
Enjoy!
@NathanRKing
Great article Kristen! I completely agree with everything you said. That is exactly what member of Gen Y want in a bank and I think this bank has it right. They're genuinely going to learn from their customers. Exciting!