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Industry News Targeting youth segments could bring banks a 10 percent revenue increase 2010-02-23 Consumers younger than 30, who belong to what is sometimes called "Generation Y," conduct financial transactions slightly differently from other customers. Banks that practice customer segmentation analysis may be uniquely equipped to engage this demographic, which will very likely set the stage for the way financial services work in the future. Global consultancy Cisco Internet Business Solutions Group recently surveyed 1,055 U.S. consumers about their financial priorities, expectations of financial services and transaction preferences. Results showed that Generation Y largely trusts in banks, and seeks their help in setting personal financial programs. Perhaps unsurprisingly, 40 percent of Gen Y customers use web-based personal financial management tools, and are four times more likely than other customers to post financial questions on online forums. More than one-third feel they need financial advice and the same amount considers banks their preferred channel for information. Though 85 percent are satisfied with their banks, 26 percent would consider switching if presented with a better deal. Cisco suggests that banks wondering how to prevent customer attrition within the Gen Y demographic should emphasize web banking, discussion forums, mobile services and video advice. One of the most talked-about aspects of the Credit CARD Act, which took effect on Monday, was to restrict the ability of young consumers to register for credit cards - banks may find young customers seeking their services more often as a consequence. 
Under 50 investors offer lucrative opportunity to financial services firms
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