20th Century Babies, 21st Century Customers: How financial technology caters to Millennial.

• Author: Barbour, Tracy
• Position: FINANCE

In November, Credit Union 1 (CUD opened Financial Center South near the Dimond Center mail in Anchorage to give its member-customers a new way to bank. The sleek, self-service facility has virtual teller machines, multiple advisory suites, open-concept consultation areas, a coffee lounge--and no teller lines.

"It's the cutting-edge of 'branch' innovation in our state," says Interim President/CEO and Chief Technology Officer Mark Burgess.

Members of CU1 can use video machines to complete routine transactions, or if they have more complicated needs, they can tap on the screen to get assistance from a local employee, also by video. "These machines free up in-branch employees for non-routine service to personally consult on questions or be readily available to facilitate more complex financial arrangements," Burgess says.

Financial Center South combines elements of traditional and virtual banking. It's emblematic of how CU1, First National Bank Alaska (FNBA). KeyBank, and other institutions are using technology to connect with their largest customer demographic group.

Today's Thirty-somethings

Millennial, the generation of Americans born between 1982 and 2000, represent about 83 million adults and more than one quarter of the nation's population, according to the US Census Bureau. They are the country's largest living adult generation--and the group continues to grow as young immigrants expand its ranks. Individuals in this age bracket are also more diverse than the generations that precede them; they are more likely to be foreign-born and speak a language other than English at home.

Today, the Millennial generation is the fastest-growing customer base for financial institutions, and many banks and credit unions are adjusting the way they do business to cater to their banking predilections. For example, when Millennials want to conduct a transaction, they expect to be able to do it quickly and smoothly through a single channel. They generally prefer not to travel to a physical branch, spend time on hold waiting for a customer service representative, or even log onto a financial institution's website.

Research indicates that Millennials want to complete banking activities with minimal fuss, and in the past few years, the COVID-19 pandemic has spurred more Millennials toward mobile and online banking, according to the American Banker Association (ABA). Since the pandemic began, 55 percent of Millennial customers have used apps on phones or other...