“My parents bought a house that was too big and expensive, and they spent most of
their lives scraping by as a result,” says Brown. “I don’t want to get into a situation like that”
also plays a role, with young people often preferring to let someone else do the driving (Uber anyone?) so they can stay connected on their smartphones, and opting to rent rather than be house poor by getting into the real estate market. While prudent financial behaviour such as paying off debt
and avoiding massive home loans may be good news for indi- vidual millennials, it spells trouble for the personal banking industry, which relies on loans, mortgages and other financial products and services to turn a profit. Add to this the demo- graphic’s distinct preference for technology and mobile-based services — and the fact that millennials now comprise the largest cohort in Canada’s workforce — and it’s clear that main- stream financial institutions will have to make some sweeping changes if they hope to attract and keep younger clients. Jodie Wallis, managing director of Accenture’s banking prac-
tice in Canada, agrees big banks could be doing much more to cater to millennials. “The key for the banks is to engage the mil- lennials now, in advance of these larger lending needs. That means delivering a seamless omnichannel experience with proactive interactions and truly personalized offers,” she says. In Poletto’s case, for example, her bank could have offered
her a personalized incentive in the form of a Spend Analysis app, suggests Wallis. This would help the bank understand more about Poletto’s financial needs and planned purchases so it could then provide specific, targeted advice on how she could pay back her student loan faster. Aſter all, the sooner she pays off her debt, the more disposable income she will have for other things, including financial products. Now compare this to Poletto’s actual experience at TD Bank.
She booked an appointment to speak with a branch employee about her loan, but the loan officer didn’t seem interested in understanding her situation or educating her about options. “The conversation was stressful,” says Poletto. “I had a list of questions I wanted answered but leſt more confused than when I went in.”
#EpicFail Poletto’s bank obviously missed a major opportunity to connect with her. That’s a serious problem, especially when you consider that millennials switch banks twice as oſten as other age groups, according to Accenture’s 2015 North America
40 | CPA MAGAZINE | MARCH 2016
Consumer Digital Banking Survey. And in-person meetings aren’t the only ways the banks are failing to address millenni- als’ needs. The survey found that nearly half (48%) of millenni- als would like their bank to start offering online video chats. Whether in-person or online, the discussions need to be tai- lored, says Wallis. “Maybe it’s a video or text chat, instead of humans for the sake of having humans,” she says. “But the interaction needs to be specifically about them and their circumstance.” Tangerine, for instance, just launched a real-time chat on its
website that will soon be available on its mobile banking app. While most chats deal with general questions only, SecureChat will allow customers to get into their specific account details and transaction information. This is the kind of technology that could win over branch-
averse millennials such as Jason Brown, 26, of Dartmouth, NS. So far he’s stayed with RBC — the only bank that had a branch in his hometown of Porters Lake, NS — but the appeal is waning. To negotiate his student line of credit, for example, he had to endure the time-suck of bank staff presenting him with mounds of paperwork. “There were hundreds of pages of differ- ent options but, frankly, it’s available online and easier to read online,” he says. Brown and his girlfriend, Collette Beyer, 22, have a small
apartment overlooking Halifax Harbour, but they’re rarely home. He’s a full-time student studying pipe trade at Nova Scotia Community College and he also works 30 hours a week at two part-time jobs: as a maintenance worker and a tech-support provider for a private college. She’s a dog groomer who works irregular hours. As a constantly on-the-go couple, they are fans of mobile
banking. They primarily use bank apps on their phones to make deposits, conduct transfers and check balances. But Brown can’t wait for the day when he can make purchases directly from his bank account using his phone. When Star- bucks launched an app that allowed its customers to pay for coffee and pastries using their phones, he wondered why the banks weren’t the first to offer something similar for all goods and services. “I feel no one bank has anything better going for it than the next one,” he says. This echoes Accenture’s findings about millennials. Wallis
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