Is the Y Generation Removing Banks?

I have read an interesting proposition in the Portfolio that the Y generation simply executes the BANK known today, because they simply do not trust financial institutions and do not like to go there. I think this is a very thoughtful proposition that you should go around. I already see before the end of this stone age banking institution…

The habits of the Y generation

I would categorize the factor of trust and place the habits of that generation under a magnifying glass. As the members of the generation live their everyday lives, as they are used to, they have a great influence on their attitudes towards the various institutions!

The members of the Y generation live a much more interactive life than their parents (X generation). This also means that they need a constant impulse, technology and efficiency. When I read that the Y generation does not like to go to the bank, the primary cause is not distrust.

They simply do not like to sit in front of a clerk and talk about something that they think they could do online, on the Internet or on the phone. This is a huge difference in attitudes, which is why the “bankruptcy system” known today is becoming more and more behind.

No need for a branch

Why practically do we have to go to the bank to deal with a case? Because it has to be a customary and legal obligation for the bank to make personal identification. However, this is a less and less justified system if we take the bank’s actual operation as the basis!

When I rented a car

Why does the bank go to the bank basically? Because you want to take credit or manage your existing money. Nowadays, due to online banking, this function is increasingly lost by the branch. Borrowing remains a factor justifying its legitimacy, but it is not necessarily true.

For two years, I wanted to rent a car for my company and at my account-keeping bank I got an opportunity to get a phone loan agent and talk about everything! Imagine that I made the whole loan by phone + email and only had to sign the papers at the very end.

Steps of borrowing with a Y-generation eye

Why do you really need to go to the bank and sit down there for hours when basically nothing is worthwhile? The clerk prints 100 pages of paper (newsletters, loan application forms), which must then be taken home and read.

In the construction, however, a good administrator can help us (na). The problem is that there are very few good mortgage specialists who are not trained to be cashier, but are professionals with years of experience.

In addition, independent financial advisors and online credit calculators + bulk items are increasingly infiltrating the role of the bank administrator in the credit strategy. For the first time we are informed on the internet and we are asking for a “non-bank banker”.

Couldn’t this be done by email or phone?

Purchase of papers

This has typically nothing to do with the bank. They give you a list of what’s going on after the papers. If we are, then (as in school) we give it to the “teacher” to check them out.

But why do they insist on personal receipt?

If we think better, why not send documents by email, most of which are basically copies (personal documents, floor plan, account statement, etc.)? It’s hard to find a rational explanation for these in 2017, as we already know how the system works…

Judgment and Loan Agreement

The first real point I think is that you can only handle it personally today. Of course, as soon as the electronic personal IDs arrive and the global system will be suitable for contracting online, everything will change.

But until then, the whole process could be simplified to this last meeting. Perhaps a generation younger than Y desires this! Get 10 emails from the bank rather than have to sit in the bank for 1 hour…

What will the BANK be like in the future?

I do not see the world in the near future where the BANK loses its function and no longer collects money without putting money. Rather, I think that the system will be increasingly adapted to changing consumer habits, which may mean closing bank branches and increasing online marketing competition in the medium term.

The process starts from big cities and over time, the countryside will follow the trend

I have collected for you how I see your future bank:

  • communication is directed to the Facebook messenger, where you can communicate with highly advanced chat bots
  • telephone administration is no longer just an effective solution for obtaining information, but we can get specific advice and constructions – we can handle credit
  • the paper-based printout of the paper is terminated, the location of which is replaced by multiple-qualified-protected electronic signatures (like the ÁNYK, only usable?)
  • The time of the loan application is reduced from 14 working days to the answer that will not be made by decision makers in the future, but by artificial intelligences that calculate the level of risk based on line samples.
  • Banks increasingly exclude the human factor – the possibility of human error from the process