NEW AGE CUSTOMERS BUILDING THE DIGITAL CAPABILITIES
BANKING FINANCE|September 2021
Introduction Consumer markets in India are expected to reap the benefit of favorable macroeconomic parameters as well as its demographics. India is one of the youngest major countries globally and has become one of the major flag bearers of development across the globe.
Deepak Kumar

The budding generation of these new-age customers are breaking into the workforce, heavily influencing the world around them. Their influence also defines how they are perceived, so that organizations can try to understand how to engage them. The influence they wield have created economic effects and impacted the Banking & Financial Sectors also.

New-age customers now enjoy a sense of disposable income and self-reliance. They grew up with increased access to information and consequently will be the best-educated and most informed consumers. Banks are poised strategically to take advantage of the opportunities this generation offers. Due to the rapid penetration of the Internet in India and with access to information, they are ready to drive the banking industry onto a whole new track in the near future.

Trend, Behaviours and Expectations

New Age Customers, also known as Generation Y or 'Gen Y' in short, are a population group in the age bracket of 18-35 years and also known as millennials. India is having the largest millennial population in absolute terms globally. Having a population of over 44 crores, the group constitutes nearly 34% of the country's total population and chief wage earners in the household in India.

They manage to seek financial advice from independent research, rather than choosing professional help. Many Banks today have not optimized resources to secure these client's trust. The individualistic and sardonic attitude of many customers translates into a cynical view of big banks and financial wellness. New financial advising and education could be a big opportunity now.

Here are few perception patterns to understand the behaviours, habits, life-needs and expectations of these customers from their Banks.

More alike: New Age Customers have had different experiences than their parents and grandparents. As they have faced different challenges than their predecessors, from a financial standpoint, many are behind from where they are supposed to be.

The beginning: They are just entering the job market have many financial questions and few places to find answers. Many have not yet formed a strong affinity for their current Banks. Though they demonstrate some general satisfaction with day-to-day services, many do not think banks fully appreciate their needs, perspectives, and motivations.

Balancing Branch Preferences and Digital Expectations: Like older consumers, new-age customers still want access to a bank branch. As per a study, today's customers are more likely than older consumers to leave their primary bank for a new one. They assume that a bank will offer a new channel for digital access to accounts and old ones will also remain available. If an institution's digital access is poor or virtually nonexistent, that will count heavily against it.

Design Rules the World: New-age customers are the most active age group using social media for communication. They prefer a tutorial on the internet or contact the company online, instead of calling support.

Total Transparency: They have got a different attitude towards privacy and are used to share private information. They like easy registration and services than timewasting secured forms.

Disrupting Media: New age customers are the most insistent critics, not forgiving brand names for conceit, deceit, and neglect. The news of bad service today spreads quickly. In practice, they do not mind speaking publicly about their user experience.

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