UK Millennials Want To Do Their Financial Planning Via Smartphone
9 August 2017
A new survey by the global asset management firm, Legg Mason, has revealed that almost half of Millennials in the UK want to do their financial planning via smartphone. This could mean drastic changes ahead for the financial services and banking industries, who have traditionally offered face-to-face services for these types of products.
For centuries, the banking industry has relied on face-to-face communication: The traditional teller at the desk, the insurance advisor coming to your house. Now, like many other industries, banking is changing at a speed of noughts as it seeks to reinvent itself in the face of modern technology. Banking apps, online banking and other such innovations are keeping the banking industry on its toes. Like every other business sector – finance must change rapidly or face being devoured.
The survey is based on responses from over 15,000 people across the world. Millennials’ reputation for being ‘digital natives’ or for having a ‘smartphone culture’ has no doubt led the way for the rise in use of banking apps to deal with everyday transactions. These can now be achieved in a few clicks or swipes, rather than having to queue at the bank during your lunch hour. Technology has very much paved the way for consumers wanting products or services in an instant – dealing with your financial status via smart phone helps with this need.
According to the Legg Mason survey, Millennials are twice as likely to use mobile phones than older generations – with 93% of those in the Millennials age bracket using their phones to access the internet regularly. Further to this, almost half (46%) of those surveyed are keen to use their smart phone to undertake all of their financial planning. According to the Legg Mason survey, this figure makes the UK the biggest group of smart phone users for financial planning in Europe, which is perhaps why the Fintech market has absolutely burst on to the UK banking scene.
In a sharp contrast to this, a mere 13% of older consumers felt comfortable taking this approach to their banking needs. However, the survey also stated that many consumers also like the idea of technology assisted human interactions, rather than doing away with human presence altogether. This set up can already be seen in many high street banks, who now operate on reduced staff with more access to ATM machines.
HSBC have already launched their voice activated banking software, making it easier than ever to access your accounts via phone call or app without having to remember complicated passwords. It is very much playing on the trend for voice-activated software that already exists in our mobile phones or in products such as Amazon’s Alexa. The Fintech industry is likely to capitalise on AI, utilising it for the more menial tasks usually undertaken by employees.
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Written By Shona Preston