The chart above shows an example, taken from a question RFI asked regarding valuable features of a mobile banking app. On all things PFM-related, the under 35s were significantly more likely to find them valuable.
This is as true for features that enable transparency of purchases – bill tracking, spending insights and searchable transactions – as it is for transparency of overall financial position – credit score tracking and financial health monitoring.
The fact is, under 35s are used to having information at their fingertips and they like to see where they’re going.
It looks as though we’re entering a period when younger adults are going to need help from their financial institutions. Further, they are a group of individuals who are open to being helped.
There is clearly a role to play in this for banks. These young adults may not know what is coming but they are open to using tools to manage their finances and won’t go down without a fight – I’d like to think of them as First Time Rate Risers or FiTeRRs for short…. (Ok, I took a bit of license there with the acronym)
From a lender’s perspective, it’s going to be crucial to understand what customers will need – flexibility in uncertain times – and what will ultimately help them feel smart about managing their money. A dual-pronged approach along those lines will be a winning formula in ensuring young adults come through the next couple of years with their credit ratings intact.
Alan Shields is Co-Founder and Chief Data Officer at RFI Global