Scratch, an in-house unit of Viacom just released a very telling three-year study that identifies the industries most likely to be transformed by Millennials.
Millennials make up the largest generation in American history so they’re the next wave of consumers that businesses should be focusing their efforts on. Millennials are generally those born between 1981 and 2000. These 14 to 33 year olds have a purchasing power that’s quickly growing to over $1.3 trillion dollars.
When Scratch polled over 10,000 millennials, they asked which industry was most ready for a disruption and the results were very clear.
Banks made up four of their top 10 most hated brands and they increasingly viewed these financial institutions as irrelevant in the near future.
In the age of Google Apps, Bitcoin, Paypal, Square and the thousands of other cloud based services and mobile apps, Millennials see traditional financial institutions as irrelevant because they are simply not meeting their needs.
An Astounding 73% stated they would be more excited about a new offering in financial services from Google, Amazon, Apple, Paypal or Square than from their own financial institution.
This can go two ways for Banks and Credit Unions.
1) They are disrupted like like many other big companies like Kodak & Blockbuster.
2) They start to focus on disrupting their own industry.
I think that most banks won’t be able to do what is necessary to accomplish option 2. In order to become a disrupter, they need to become agile and lean, something that most of these banks have no idea how to do.
“Millennials believe innovation will come from outside the industry.”
When it comes to disruption, the disrupter companies which are generally startups, don’t create value the same way that these big financial institutions do.
It’s these methodologies, business building philosophies and startup cultures that have done the disruption in so many other industries and this is where today’s banks and credit unions fall short.
If Banks and Credit Unions want to win the hearts of Millennials, they are going to have to fix their corporate cultures and start to think and act more like a Startup.
Check out the Millennial Disruption Index to see the full results of the study.