2010 cugm terrie cloud gen y...how gen y / millennium use technology just before her client, arista...

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How to Expand Your

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By Reaching Out to Gen Y’ers &

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The Gen Y

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Why Gen Y & Millennium Customers?Customers?

For retail-oriented community banks; former or current mutuals; former S&Ls; and, traditional community banks: Vast majority of deposit base is becoming

retirement age, at or past retirement age:What percentage of the population is

Gen Y?32%+ of Population

Cardinal SoftwareCardinal Software Z

State of the Gen Y/Millennium CultureGen Y/Millennium Culture

Wh t i $214 Billi ?What is $214 Billion?Young Adults Annual Income

What is $200+ Billion?What is $200 Billion?Young Adults Annual Spending



What is 14%?What is 14%?Gen Y and Millennium that use Direct

DepositDeposit

What is 33%?Percentage of 18-24 years olds that have g y

a checking account



What percentage found that their bankingWhat percentage found that their banking experience was “unpleasant”?

25%25%

What percentage said that they would most unlikely return to a bank for help?

39%



What is 50%?What is 50%?Percentage of 18-24 years olds that say mobile banking functionality will play amobile banking functionality will play a major factor on the FI they do business

withwith

Wh i 8 %?What is 8.5%?Percentage of US Deposits held by


“direct banks” by 2012

Who are the Gen Y & Millennium Customers?Millennium Customers?

For these 24 or younger aged “heirs”:

Job Prospects are LimitedCan’t Get or Manage a Credit Card

Pays Minimum OnlyDoesn’t Understand or Know

How or Why to SaveDoesn’t Know or Understand Loan Origination

Process or Pay Back Process



For these 24 or younger aged “heirs”:Won’t Use or Care to Use

“Traditional Banking”

Technology Charged1/3 Lif I t t1/3 Life on Internet

Wants Information Now


Instant Gratification


They want to change the world, and they think they can do it.

They want to tell you what they think and they expect you to listen to themthey expect you to listen to them.

Work means more than a paycheck.

They also want to make a difference.

As the first generation to be born into the Internet Age, they are very tech savvy and like to use it while multitasking.



The environment is very important to them. y p

They feel their greatest contributions can be through their knowledge not their pocketbookknowledge - not their pocketbook.

They are our country’s most culturally diverse generation y y y gand want to live in diverse neighborhoods

They think like entrepreneurs but consider relationshipsThey think like entrepreneurs, but consider relationships more important than making money.


How Gen Y / Millennium Use TechnologyTechnology

Just before her client, Arista Records, was releasing a CD from Babyface Whitespeed flashed 10 000 e mailsCD from Babyface, Whitespeed flashed 10,000 e-mails

to likely purchasers whose names she had gleaned from lists of Babyface fans. The e-mail gave them a chance to

buy the album before it hit stores.

Some 62% of the e mails were passed along toSome 62% of the e-mails were passed along to others.

Arista can track exactly what is done with every e-mail after it's received.



In exchange for things like freebie CDs and hi t A i t d d f t d th i ilshirts, Arista nudged fans to send their e-mails

along to 10 friends.

The "Arista Army" quickly grew from 600 Gen Yers to upward of 20 000 almostGen Yers to upward of 20,000 almost

instantly.


Gen Y / Millennium “Goof Factor”Goof Factor

Take the World Dodgeball Association. This new league is every bit as offbeat as it sounds It specifically targets Gen Yevery bit as offbeat as it sounds. It specifically targets Gen Y

by touring college campuses.

First sponsor to sign on: Argus Camera. Hardly a Gen Y-savvy company, it would seem. And that's the problem. Only

10% of Gen Y has heard of Argus Camera.

So, instead of sponsoring a major sport where Argus would get lost in the shuffle it opted for a newfangled sport where itget lost in the shuffle, it opted for a newfangled sport where it could stand out. It will sponsor halftime "throw-offs" for fans,

with the winner getting a digital camera. "This is just what Gen Y is looking for " Argus says "The goof factor "


Y is looking for, Argus says. The goof factor.


ING “Bike to Work Week”

ING (a “direct bank”) who has 8 non-transactional b h ff d “bik t k k” ff ibranches offered a “bike to work week” offering

anyone who bikes to the branch to get a free bike tune-up a free bike helmet and a freebike tune up, a free bike helmet, and a free

gourmet coffee or smoothie.

ING Staffers were on-hand to offer assistance advice about financial products only when


p yasked.

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Banking 101 f

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Gen Y / Millennium Customers

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Banking 101 for Gen Y

• Traditional Banking Concepts are Foreign:g p g• Branches – Are you serious?• Checks – What are those?• Loan Application – You mean $ isn’t free?• Credit Scores – I don’t know Mr. Score. WhoCredit Scores I don t know Mr. Score. Who

is he?• Relationship Bankers – Can I reach him on p

FaceBook or Twitter?• Payments – What are these?


y

Banking 101 for Gen Y• Opportunities:

• Non-Interest Fee Income Opportunity for FIs• Non-cash Rewards• Debit Card / Pre-Paid Cards• Mobile Bankingg• Mobile Payments• Non-Standard Product OfferingsNon Standard Product Offerings• Non-Traditional Marketing / Education

Strategies


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Non-Interest Fee Income Opportunities for FIsOpportunities for FIs

• ATM/Debit Fees• NSF / Overdrafts• OD Privilege• OD Privilege• Check Writing Fees• Non-Deposit Teller Transaction Fees• Below Minimums on Savings Instrumentsg


Non-Cash Rewards

• Facebook Credits (Facebook/OneTouch)( )• iTunes Rewards (BancVue)• Dairy Queen (Dairy Queen/Tetherball• Dairy Queen (Dairy Queen/Tetherball

LLC)C ll Ph Mi t /Billi R d• Cell Phone Minute/Billing Rewards (Various)


Debit Card / Pre-Paid CardsPre-Paid Cards

• Offer $ to a Savings/Other Account For Each Credit Debit Card Transaction

• Offer Pre-Paid Cards for Payroll / Non-Cash yMoney

• Partner with Schools; Colleges; Local ; g ;Businesses to Offer Pre-Paid Cards for Wages

• Perhaps Tie a Savings Arrangement to the Pre-Paid Card


Mobile Banking

• Account Balance Alerts• Account Activity Alerts• Bill Payment Alertsy• Mobile Bill Pay• Mobile Transfers• Mobile Re-fill of Pre-Paid Debit Card• Mobile Deactivation of ATM/Debit Card (Veritec)Mobile Deactivation of ATM/Debit Card (Veritec)• Mobile ATM/Debit Card Disputes*• Mobile Real-time Payments*


Mobile Real time Payments

Mobile Money

• Use Mobile Phone for Payments via M bil Ph C tifi t (V i )Mobile Phone Certificate (Various) • (10% of all contactless payments by 2010)

• Charge Retail / Payments to Mobile Phone g yCarrier (Various)


Non-Standard Product OfferingsOfferings

• Gen Y / Millennium Account:O O• On-Line Account Opening

• On-Line Banking Bill P ( li it d)• Bill Pay (unlimited)

• Direct DepositOD P i il• OD Privilege

• Debit/ATM Card• Savings Account tied to Debit Card with• Savings Account tied to Debit Card with

Restrictions• Charge for Check Writing and Non-Deposit Teller


Charge for Check Writing and Non Deposit Teller Transactions

Marketing / Education

• Reward Contests

• Offer “Goof Factor” Contests, Events, as , ,a way to Promote and Educate

• Use Mobile Alerts, Twitter or Other Social Media Outlets to Send TargetedMedia Outlets to Send Targeted Messages


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Our Experience with FaceBook

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Redding Bank of Commerce

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Facebook?

• Facebook?? What are you talking about?Facebook?? What are you talking about?• Early adoption by employees for personal

use over the last couple of yearsuse over the last couple of years• Lack of understanding as to what it is and

h t d ith itwhat you can do with it• Some resistance to the technology by

management and staff


Learning about Facebook

• Ground up effort by a dedicated set ofGround up effort by a dedicated set of employees to educate bank management and staff on what it was and see itsand staff on what it was and see its potential

• On site Facebook training sessions to educate key personal including uppereducate key personal including upper management and marketing staff


Embracing Facebook

• Buy in from management to useBuy in from management to use technology

• Developed a dedicated team of employeesDeveloped a dedicated team of employees to lead initiative

• Developed a Facebook fan pageDeveloped a Facebook fan page• Updated employee conduct policy to

include social mediainclude social media • Created a set of trained admins to monitor

and update our fan page


and update our fan page

Setting the Ball in Motion

• Completed Bank Fan Page p g• Established and set security standards allowing

minimal outside posting of content• Determined all employees who were on

Facebook and held a rollout meetingA k d ll l t i i l di• Asked all employees to sign new social media policy and to ensure their personal pages complied with bank policy. Policy includes co p ed t ba po cy o cy c udesappropriate behavior and brand protection

• Rolled out Fan page and asked all employees f f


become a fan of the bank

Bank of Commerce Fan Page


Why Facebook?

• Social Media like Facebook is here to stayY l d t b bl• Your employees and customers are probably already on Facebook talking about your bank Thi i “f ” t i• This is a “free” means to increase your presence and reach a wider demographic

• Just about every company is on the Facebook• Just about every company is on the Facebookban wagon, so if you are not you will be left behindbehind

• Allows you to be prepared to respond as needed by having the communication channel setup and


y g poperational

Facebook Day to Day

• Keep your posts fresh so your fans will continue to come backto come back

• Monitor all comments and take any needed action.

• Complaints are retained along with response per regulations. Responses not sent through FB.

• Minimize the “selling”• Minimize the selling• Focus on your presence in the community• Setup a keyword monitoring applicationSetup a keyword monitoring application

(defensio.com – free right now)

K i F !Cardinal SoftwareCardinal Software Z

• Keep it Fun!

Where we are now

• Launch Date March 1st / 265 Fans and Growing!


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2010

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10 C Tom Shen

CBG Chief Strategy Officer

Steve HempRedding Bank of

CommerceCC 22

H. Terrie CloudProduct Manager /

Director of Solutions ConsultingConsulting

2010 cugm terrie cloud gen y...how gen y / millennium use technology just before her client, arista...

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