The Millennial generation is the largest in history, with more spending power and technical acumen than any generation before it. Did you know that one-fifth of Millennials have never written a physical check? Not surprisingly, in a survey conducted by Axios in January 2019, 53.2% of respondents between 18 and 34 have, or would consider moving their banking services to independent, digital only banks.
The future of money (and technology for that matter) is predictive, personalized and proactive...the same words that could be used to describe a Millennial.
There is a critical shift happening in this space, and in order to survive, it will be more important than ever that long-standing financial institutions innovate at the highest level possible.
In 2018, BMO, IBM, and BioConnect partnered to launch a biometric authentication solution to handle and approve transactions quickly and safely within BMO's Banking for Business Mobile App:
This innovation aligns with what is happening across our Southern border at Bank of America. In fact, several years ago the bank introduced fingerprint and Touch ID authentication and a pilot of iris-scanning. Most recently, the financial institution announced the addition of a new App Linking feature. This feature is available in all mobile apps that fall under the Bank of America umbrella (Bank of America, Merrill Lynch, Merrill Edge, and U.S. Trust). Essentially, users authenticate once, using a fingerprint scan or facial recognition, and can then use a button to switch between these apps without needing to re-authenticate.
According to Gartner, a research and advisory firm that provides insights, tools, and advice to leaders in IT and Finance, customer experience will be the largest driver of customer acquisition business by 2020. In all, from improving banking regulations to the changing way a Millennial chooses to interact with their bank, incumbent banks don't have time to sit around and contemplate the future of their business. They must act fast and be fearful of FinTech, that is quickly meeting the demands, and the implementation of biometrics is quickly emerging as a critical competitive advantage that must be taken advantage of.
One-third of Millennials are open to switching banks in the next 90 days and the question remains: Will the existing big banks in just 10 years' time, fall apart? Or will they will respond by matching and copying some of those products by the new entrants?
Perhaps the better solution is to partner with FinTech companies already on the forefront of meeting Millennial demands.
To learn more about BioConnect ID and its applications in the financial space, book a free demo here.