What will the bank of the future look like? How will customers manage their money in 20, or even 40, years’ time? In this age of imminent change, is it even possible to guess?
Certainly many banking executives are struggling to decide where their business should be best placed only 12 months from now. It is understandable. The impact of digital technology has been vast and swift and entirely transformational.
Yet while banks try to keep up – and ahead – in the short to medium-term through the latest technological advances and innovative plays, they must also carve out a long-term strategy for themselves. It is about readying your business for who your customer will be tomorrow – whether that is next week or next decade.
Generations X and Y will dominate the financial space over the next couple of decades.
Today's young professionals will be significant drivers of retail banking revenues tomorrow.
Think of customer demographics as a pipeline of sorts – as people are moving into retirement at one end, a new cohort of young men and women is entering at the other, to embark on what (for most of them) will be a 40 to 50 year experience as workers, consumers, savers, borrowers and investors.
This idea lends itself to two key points:
In this context, KPMG set out to survey and hold focus groups with our Australian young professionals between the ages of 18 to 30. We see this group as particularly interesting as they are a strong representation of future premier and private banking customers.