Net Generation - Services

Consistency of service, regardless of channel.

What are the expectations of Net Gen?

We need to imagine if we'd actually get a business loan (it's a risky business model) - a commodity product in an overly saturated market.

It's a cultural thing that has to be ingrained in every pore of your system.

We're not driven by member needs, we're driven by a business model.

Match authenticity to set expectations

Need to deliver customized services wherever customers exist, give them their bank account information wherever they need it

CUs are good at making the donuts in the store. Think about Krispy Kreme in its heyday, and in its recent decline.

What if Starbucks was just a vending machine?

It's not about fancy experiences, it's about flatter, more personal, more informal experiences

Wifi in branches so Net Gen can do functions while in line

Hear local music at Umpqua Bank.

Buying music in a store used to be sterile, Virgin made it more personal

We have to deal with both ends - the grandmothers who need help updating the passbook, as well as Net Gen who want to self serve

Different levels of service people can experience within the same branch

Special accounts allow you to opt in for more service

Maybe in branch remains very high touch without the ING model

Specialty branches with different foci

$1000 per household to support branches, Net Gen isn't going to want to pay for that

Net Gen asks their parents for advice, often would check their FI for rates/products.

Can the role of the parent be replaced by a more knowledgeable source

Market to moms and dads to help them help their children make the right decisions

It's Wesabe.com

Use the Wesabe score to identify if you're a good deal

Move away from rates and spreads and move towards your offering being a good deal - what's behind that is rates and fees

Influenced by people like you

Exclusivity is important, be under the radar, overt marketing makes services more desirable

It's not about pushing product, Net Gen is sick of having stuff screamed at them

Umpqua isn't interested in marketing, but building relationships

Gen Y is quite distinct from Gen X in asking their parents for trusted advice. This might explain some products, like BofA's marketing of "CampusEdge Checking" accounts to parents of college-bound students (ease of transferring $ from a parent's BofA acct to student's acct), which would have been unheard of 15 years ago. The actual product isn't exceptional, but the "soft sell" approach for BofA's student products (five years' free account if your parent has a BofA account, etc) has been surprisingly effective for BofA in developing client relations with young adults (as well as cross-selling of products like student loans, credit cards). We may not like it, but the approach seems to have worked so far. Is it good enough for the long term?

Even though Gen Y, Gen X and a great many Boomers have become very comfortable with electronic banking, branches and person-to-person points of contact still are surprisingly important.