Yes, it’s morbid but it’s a sad reality – many banks and credit unions are facing the death of their customers in the older baby boomer and silent generations. This represents an important shift as these large populations have been an important majority of the customer base, many for their entire life. To build a customer base for the future, banks and credit unions have to invest in relationships with younger consumers. The good news is it doesn’t have to be the dreaded millennials if you’re banking on Generation X.
Generation X is the answer. These consumers are actually the ideal fit for banks that need to expand their customer base into a younger audience. Gen Xers (ages 40-54), also known as the MTV generation, have complex financial needs that banks can help to address and eventually build a relationship.
Gen X At-a-Glance
- They’re making money but struggling with debt – While they are big earners ($125k average between the bank and retirement funds) this generation is also carrying the most credit card debt (an average of $39k). Perhaps because of the financial burden of caring for children and aging parents.
- They’re tech friendly – always on their phone (92% own smart phone and spend 21 hours a week) or checking email (5 hours a day) and half of them would be open to switching from a traditional bank or credit union to a tech offering like Amazon Bank.
- They’re social – this group is actually one of the largest users of social media at 7 hours a week. They’re partial to Facebook.
While they are financially savvy consumers, Gen Xers do recognize their own knowledge gaps and welcome help and support from a financial partner. Banks and credit unions that need new, younger customers should focus on building relationships with this audience by becoming a financial partner that can make their life more convenient with tech-driven solutions. Not sure where to start? We can help when you’re banking on Generation X.
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