At first glance, the young are a relatively unappealing market segment due to their limited income. However, as they grow older, they become wealthier and require financing for life projects such as home mortgages and education loans. Since customers often stay with their first bank, it is important to forge relationships with young customers. Today’s youth is tomorrow’s lucrative client base and so far, many banks have not paid sufficient attention to this age group or taken action to attract them. This delayed action/inaction provides non-banks an opportunity to provide essential services such as savings, loans and payments – that have been traditionally carried out by banks.
Our report on Youth Banking elaborates on three broad areas for banks to work on to become more attractive to young customers: