Canadian banks should target Millennials via mobile channels, reports Mintel
CHICAGO, Nov. 7, 2012 /PRNewswire/ -- Mobile banking is a hot topic in financial services right now, especially for those targeting the Millennial generation. According to Mintel research, more than half (53%) of younger Canadian Millennials who own a mobile phone have checked their account balance from their cell. Furthermore, Mintel reports that 41% have viewed their transaction history or account statement, and 33% have used their mobile phone to pay bills.
What's more, 30% of 18-34-year-olds have switched banks at least once in the past five years—the highest percentages of any other age group. Therefore, Mintel recommends that the Millennial generation is a critical group for banks to reach in terms of attracting them—and retaining them—as new customers.
"Millennials are the customer of the future," says Susan Wolfe, vice president of financial services at Mintel Comperemedia. "Forty-eight percent of younger Canadian Millennials (those aged 18-24) own a smartphone, but they are also the most likely to switch banks. It's imperative to offer mobile services that meet the expectations of this group, as they rely more heavily on mobile communication than any other age group, not only to attract them, but to keep them as customers."
Millennials now account for 37% of the total Canadian population and their use of technology makes them different from previous generations. If financial services providers want to attract this lucrative demographic, and keep them as loyal customers, they need to offer high-quality mobile services.
"Many Canadian banks are already marketing mobile banking to their customers, but it's no longer being seen as a singular product," adds Susan Wolfe. "Mobile is currently being positioned as another channel that fits into the entire banking experience—something that will really resonate with customers, especially Millennials."
About Mintel Comperemedia
Mintel Comperemedia® provides strategic solutions for businesses looking to advance and improve their direct marketing strategy. It monitors direct mail, email, print and online advertising targeted at consumers, small businesses and insurance agents across eight industries: credit cards, insurance, telecommunications, banking, investments, mortgage & loan, automotive, and travel and leisure. Mintel Comperemedia helps businesses identify competitor strategies and direct marketing trends, so they can create more effective, informed marketing campaigns. www.comperemedia.com.
Mintel is a leading global provider of market, consumer and innovation research. For 40 years, Mintel has given companies worldwide the best data, the most useful analysis and the smartest business recommendations. www.mintel.com.