Offering money management tools is a powerful strategy for banks to attract millennials. Banks have increasingly been adding money management features — which help customers cut spending and grow savings — as a value-driver in their mobile offerings. Today, Chase provides its millennial-focused app Finn, BBVA Compass offers its Simple bank account, and Wells Fargo’s financial management product, called Greenhouse, is currently in beta. Exclusive data from Business Insider Intelligence’s second annual Mobile Banking Competitive Edge study shows that demand for these features peaks among younger consumers — 22.4% of millennials would like to see how their spending compares with others, more than twice the rate of Gen Xers (9.1%) and over six times the rate of baby boomers (3.5%), for example.
Millennials are an attractive audience for banks because they have aged into the financial mainstream, and their spending power is high and growing. Millennials have a clear need for money management features in their current stage of life — many are young enough that their financial experience is limited, but they're starting to earn more money and are considering bigger purchases, like real estate. These factors could contribute to why their demand for these features far exceeds other adult generations. In contrast, although their younger counterparts in Gen Z are attracting much attention in financial circles, the oldest are only 18, and their limited assets make them less of a near-term opportunity.
Providing these tools can also help banks keep their existing millennial customers loyal. Millennials turn to mobile banking often, with 86% in our survey saying they’ve used mobile banking in the past week. And over half (63%) of millennials say they would change banks for better mobile banking capabilities. This means that, in order to keep millennial customers, banks should prioritize offering mobile features in high demand, such as money management tools. Beyond meeting consumer demand, these features help to deepen the bank-customer relationship, which can increase loyalty.
These are the top money management features banks should offer [...]