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Branch to back pocket: The future of banking is mobile

As the largest consumer demographic of financial services, Millennials are demanding personalised, mobile banking experiences - putting the pressure on financial institutions to digitise or dwindle.

Data and analytics will fuel the personalisation, customisation and experiences that Millennials demand from their mobile devices, says Rocky Scopelliti, Telstra’s global industry executive for banking, finance and insurance.

 In his latest report, Millennials, Mobiles & Money, Scopelliti reveals that 76 per cent of Millennials’ financial interactions are now on mobile.

“We’re living in a mobile-first financial services world and it’s all about personalisation,” says Scopelliti, noting that 2015 was a landmark year for personalised mobile experiences. In fact, the financial services sector in Australia invested more than $720 million in mobile applications in 2015 alone, he adds.

Meanwhile, Australian banks are closing five per cent of their branches per year, and the Australian public is using five per cent less cash every year, as more and more consumers transition to cashless payment systems such as PayPass.

“New services are being created through applications that are deeply embedded withinour lifestyles,” says Scopelliti. “We’re only at the beginning of the next evolution of financial services.”

 

Millennials are redefining financial services

As banking services and digital tech merge, mobile apps and services are becoming the key channel to do business. Video uses latest research to identify key trends impacting financial institutions as they look to stay relevant and meet the expectations of Millennials in a mobile-first world.

[Transcript]

Rocky Scopelliti, Global Industry Executive – Banking, Finance and Insurance, Telstra 

Millennials have now become the largest demographic group on the planet and make up one in three people in the population.

They're not only customers, they are employees, they are investors and they are policy makers. 

They want experiences that value-add to their lifestyles, and they expect products and services to just be the means to that end. 

This is the demographic group that is seeking new experiences -- new ways of providing financial services that are different to what's provided by traditional institutions today.

We're now living in a mobile-first financial services world. And in a mobile-first financial services world it's all about personalisation. 

Just as easily as they can commence a relationship with you through that device, they can also terminate that relationship as well.

Trust to a millennial means four things. Trust to keep my finances secure. Trust to keep my personal information secure. Trust to keep private the interactions I have with the institution. Then, lastly, the reputation of the institution as a whole. But trust is perishable with less than 1 in 2 Millennials satisfied with their institutions current performance on trust.

This is an area of priority for institutions to get right so that they're providing the right capacity through the right channels to deliver the right experiences to the right customers at any given point in time. Just because they're connected doesn't mean they're listening.

It's a question of how you create services through those applications that add value to a millennial's life.

That is really at the heart of what their expectations are in their relationship with you.    

Discover the latest technology trends impacting the way banking and finance institutions are interacting with their existing customers – and enticing new ones.

Find Out More

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