Coming of age in the Great Recession greatly impacts how millennials think about money and influence. Raised with the mentality that money is both precious and a gateway to meaningful experiences, millennial consumers are incredibly diligent researchers. Understanding millennial spending habits can help financial institutions make more informed choices about how to build brand loyalty among this generation for decades to come, especially when it comes to a big decision like applying for a loan.
Data can help us paint a vivid portrait of this generation. USC reports that one in three millennials consult blogs before making a purchase, and that 85% of millennials are more likely to make a purchase if it is personalized to their interests. Before taking the leap on any sort of purchase meant to last, be it a car, a home, or a blender, they do their homework. They scan reviews for endorsements from trusted friends and like-minded strangers, evidenced by the fact that -- according to Gartner research -- 84% of millennials are likely to be influenced to make a purchase after consuming content created about the product.
As millennials continue to reshape the economy and redefine what it means to be an entrepreneur, your bank has the power to play a pivotal role in helping ambitious digital natives achieve their highest potential, despite whatever life throws them. But here’s the plot twist: captivating millennial borrowers requires more than simply “going digital” with your loan application system. As financial institutions consider migrating their loan application process online, here are three mission critical steps to success that banks might be overlooking:
- Build a consistent digital brand presence. When it comes to retaining millennial customers, your loan application platform should feel like a natural extension of your existing banking experience. Our white label solution allows you to customize Zikher for your brand, ensuring easy recognition throughout the loan application.
- Fully automate the prequalification process. Any customer under the age of 40 will expect the qualification process to be mobile, quick, and painless. Zikher reviews applications in minutes, expediting the process for your team and delivering instant gratification to your customers.
- Don’t sleep on the power of referral marketing. 68% of millennials report that they won’t make a major decision (like applying for a loan) until consulting with people they trust. Baking referral marketing into your digital strategy can instill a rare sense of brand loyalty among this notoriously nomadic generation of consumers
As millennials continue to reshape the economy and redefine what it means to be an entrepreneur, your bank has the power to play a pivotal role in helping ambitious digital natives achieve their highest potential, despite whatever life throws them. To see how LendTech POS can help your institution, schedule a demo today!