COVID-19 paves the way for a new era of youth banking
The ongoing pandemic has forced a lot of financial institutions into rethinking their approach towards customers. Many have gone back to the drawing board and are figuring out ways to engage with their customers beyond the traditional channels of branches and call-centers.
Customer behaviour will definitely change for most, but more specifically, this pandemic will have a lasting impact on the psyche of our impressionable youngsters(aged 8 to 18). Their interaction with the physical world will never be the same again.
According to the United Nations, young people (<20 years of age) accounted for 33% of the global population in 2020, making them the largest demographic across the globe.
At first glance, the young are a relatively unappealing market segment due to their limited or no income. However, there could be bigger long-term stakes at play here, especially for banks. Banks have not yet paid sufficient attention to this age-group or taken any actions to attract them. Instead, they have rather been catering to older customers who have more money and so appear to be a better business prospect for immediate profits. Is the bank's loss turning out to be someone else's gain?
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