Banks Risk Losing Deposits In The Great Wealth Transfer As Millennials Flock To Digital Financial Services – Blend Is Helping Them Get Younger Customers Back

The largest wealth transfer in history is currently underway as an estimated $30 trillion is expected to transfer from Baby Boomers to their Gen X and Millennial heirs by 2048. Considering that fewer than half of younger generations use the same bank as their parents, that wealth transfer will mean losing deposit accounts for many banks and credit unions currently catering to older customers. 

To attract those younger customers, banks and credit unions will need to invest in a digital transformation to deliver the kind of customer experience they expect. Here’s how Blend Labs, Inc. BLND, a leading banking software company, is helping financial institutions make that transformation as smooth as possible.

What Do Younger Generations Want In A Bank Account?

In a word: digital. Millennials and Gen Z overwhelmingly prioritize robust and user-friendly digital tools, with more than 60% saying they would be willing to switch to a new bank for a better digital experience. For most consumers, that needs to include the following:

• Mobile account opening process. The most popular choice for opening a new deposit account among younger generations was a fully mobile application process. 
• Seamless omnichannel experience. Consumers want a consistent user experience whether they’re on their computer, on the phone, at a branch or using a mobile app. That includes both the ability to access all services from anywhere as well as real-time data synchronization so that every point of access has the most up-to-date information. 
• Customizable mobile and online banking tools. This might include money management and budgeting tools, but also a variety of digital services like automatic payments, custom bill-pay reminders or credit monitoring. 
• 24/7 customer service. Digital-first may be the name of the game but consumers still want access to live support. That means in-app chat support, social media support and other integrated communication channels so consumers can connect with customer service whenever and wherever they are. 

Blend’s Composable Origination Platform Helps Banks Build The Digital Experience Customers Want

Blend’s composable software platform gives banks the tools they need to deliver on every priority younger consumers demand. Banks can quickly compose a personalized origination experience on the back end so users on the font-end get the fintech experience from a traditional bank. Users can open a new deposit account entirely online in a matter of minutes. The intuitive, mobile-friendly account application provides a guided, step-by-step process to get through the onboarding in a single session. 

Once onboarded, users can immediately start using their account with a virtual card and fund the new account with a variety of options including debit cards, external bank accounts and digital wallets. This fast and flexible service meets consumers’ need for a seamless and customizable digital experience. 

When it comes time to explore additional financial products and solutions, like loans and credit cards, Blend also helps banks deliver a more efficient and streamlined process. The data-driven software can deliver personalized recommendations and pre-approvals as well as pre-fill parts of the application using data the customer already provided when opening the deposit account. This cuts down on the time it takes to apply for and get approved for loans, lines of credit, and other financial products – all of which can then be managed in the same digital platform customers are already familiar with. 

Featured Photo  by Ono Kosuki on Pexels

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