Getting Ready for Generation Y

Recently, we have been talking quite a bit about targeting members of Gen Y as customers and employees. This is certainly an important issue facing financial institutions today, and will only continue to create more pressing challenges as we move forward.

A couple months ago, we were approached by Community Banker Magazine to write an article on the topic. The article Getting Ready for Generation Y appeared in the October issue of the magazine, and can also be found on our website.

Some of our more recent presentations on the topic have followed the general main points of this article. These presentations have emphasized the fact that targeting Gen Y is an involved long-term process; that it involves, but is not limited to the Internet; and that hiring and listening to younger employees can help institutions target this group as customers.

There's also a good Gen Y article in this month's issue of BAI's Banking Strategies titled Banking on the Future with Generation Y.

The Millennials Are Coming. Are You Ready?

As I mentioned in my previous post, we gave a presentation to members of America’s Community Bankers last Thursday during the association’s Annual Convention. The session titled: “The Great Demographic Divide” discussed the impact Generation Y is having, and will continue to have on the financial services industry.

During the session, a banker asked “When is all of this going to happen?” He was referring to the influence Gen Y will have on the industry, and the changes that will be required of institutions to attract Gen Y as customers and employees.

It’s already happening. Gen Y certainly presents a unique set of challenges to financial services executives and marketers – but this simply is not an issue that can be ignored or put on the back burner for later discussion. This is an issue that management teams need to address now, especially given an aging customer and employee base at institutions across the country, and that Gen Y has very different expectations of the consumer and employee experience.

The impact from Generation Y can be seen at companies and in industries across the country. In fact, last night’s episode of 60 Minutes featured a segment titled “The Millennials Are Coming” which discussed many of the same points we made during our presentation to the group of bankers last week. If you missed the segment, I recommend that you check it out.

The Millennials are coming (many are already here). Are you ready?

The Great Demographic Divide - Or Disconnect

Yesterday, Joe and I gave a presentation to members of America's Community Bankers in Las Vegas about the divide that exists between Baby Boomers and Generation Y. The presentation discussed the differences in the needs, values and preferences of both generational segments - and framed up ways for the bank executives to think about attracting Gen Y customers and employees.

During the presentation, I realized that with this audience, there may be more than a demographic divide between them and the younger generations - instead, it's more like a complete disconnect. The audience was composed largely of Boomers who are directors, executives and senior managers at banks; and, most of them looked at me like I was speaking a foreign language when I made references to: blogs, podcasts, and social media websites. And, perhaps even more surprising was that not one person in the audience had heard of companies like Prosper, Mint or Virgin Money.

A friend of mine brought up a good point after I told him this: we're not talking about the future here - this is happening now. The divide (or disconnect) needs to be recognized, as it impacts us all.

A Win-Win Opportunity for Community Banks

Community banks across the country are challenged with attracting younger talent; and, at the same time, many community banks are looking to have a more meaningful impact in their communities. So, what if these institutions could tackle both at the same time?

It could be a win-win opportunity.

A recent Deloitte Insights podcast - The Authentic Edge: Getting it Right with Gen Y discusses the results of its 2007 Volunteer IMPACT Survey of 18-24 year olds. The survey revealed the importance of skills-based volunteerism opportunities in the workplace for Gen-Y. This kind of volunteerism is a departure from the typical volunteer opportunities we see at many community banks, which usually involve posting a sign-up sheet in the lunch room asking employees to spend their Saturday cleaning a local park wearing a bank t-shirt.

Certainly, the more traditional community involvement (i.e. cleaning the local park, planting trees, home building, etc.) is appreciated. But, as banks look to build stronger brands, community outreach needs to be looked at differently – as an opportunity to reinforce your message, to engage your employees and make a real, meaningful impact. Gen Y employees want their work to be worthwhile, and want to apply their skills in making a meaningful impact on their communities. There is a great opportunity here for community banks to both become more invested and involved in their communities and to attract younger talent along the way.

Next week, we will be speaking to the members of America’s Community Bankers at the association’s Annual Convention about target Generation Y as employees and as customers. Let me know if you’ll be attending.

And, I’m always looking for solid examples of community banks and credit unions targeting Gen Y - let me know what you've seen.