Thursday, May 26, 2016

How To Changing Face of Mortgage Customers

The banking industry is changing and it is becoming incrsingly important for banks to follow suit. This is especially true for smaller local banks. As baby-boomers hd towards retirement and banks experience a drop in many banking services including mortgages, due to this change, it is important for banks to have a strong handle on how to rch out and impress the younger market.
In fact, according to Javelin Strategy and Resrch, it is estimated that within two yrs, the income of -Y will top that of the Baby Boomers. Also, -X is moving into starter and move-up homes, and -Y is beginning to enter the market. This need for mortgages in both groups has banks scrambling to attract them. This is not a bad thing for the banks and certainly not a bad thing for X/Y. It allows banks exceptionally opportunity for growth, and also better meets the needs and desires of the younger erations.

So What Do We Want?We want options and we want to know who our bank is. A recent study conducted by BancVue shows that over a quarter of -Y bank customers do not bank locally. They had responded that they do not feel the local bank cannot offer the same range of products and options that their current “big bank” can. Nrly a third responded they don’t use a community bank or credit union because they “have never hrd of it”. The study also revled that options like customizable banking rewards and cash back offers are more important to them than the older erations.
Another offering sought is quality e-banking and mobile banking experiences. -X/Y does their banking primarily online. A quality infrastructure must be in place by smaller banks or like the check, they too will begin to fade in relevance. And, these newer erations are seeking a move from hidden fees and charges to both openness and a quality return. After all, if their bank doesn’t provide this, there is no shortage of big banks that will. This article, Dling With eration X, on offers some additional insight.
What Should Local Banks Do?In the old days, members of a community were limited in their choice of banks. If they only had two banks in town to choose from, it wasn’t hard to know what mortgage to choose and who they secured it with. In this new global economy and the advent of electronic banking people now have countless options. The bigger, national banks have gained a foothold in nrly every community across the United States and are attractive to the younger crowd for their flashy marketing and multiple options. It’s time for crtive marketing and seeking out new avenues to spend the budget. If the younger customers have never hrd of a bank, then the bank isn’t effectively rching them where they are at, and that will cost them.
We want rewards! The -X/Y crowd has been trained by our culture that we should be getting something back, that companies must reward us for our business. Also, one of the quickest ways to lose a younger customer is to hook them and then dump some hidden fees on them. Loyalty is something that is less important to many than in previous decades. And, we want to have choices to pick benefits that fit our stage of life. If someone is working three jobs to pay their mortgage payment, they probably aren’t too interested in frequent flier miles, for example. So, rewards should be flexible with multiple options that we get to choose.
Also, it must be remembered that we grew up on technology. I recently banked with a smaller bank and one of the rsons I left was due to the poor quality of their mobile app and online banking ftures. I do all my banking from my business expenses to my water bill online. If the technology is dated and difficult to use, I will seek out a better option. The times, they are a changing’, and banks need to change their technology offerings with it.
Into the Wild Blue YonderLocal banks have a long and prosperous history. In fact, Limited mortgage options for customers have kept them prospering. The time for change is now and banks must embrace it to rch the next ‘Grtest eration’ for continued success.
About the Author: Jason Grabinger, also known as the Word Ninja, is a writer, blogger, and content marketer and writes about topics including mortgages on behalf of Plaza Park Bank in St. Cloud, MN. As a business owner and a member of -X, he is keenly aware of the banking needs and desires of his eration. Follow him on Twitter, Facebook, LinkedIn, or Sign-Upfor his super-secret email updates.

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