will turn 65 @BankDirector when it comes to recruiting & - - PowerPoint PPT Presentation

@BankDirector

every day, for the next 15 years,

10,000 people

will turn 65

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when it comes to recruiting & retaining younger people, banks have a bit of a

public relations problem

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Don’t Worry The NFL has the same Problem

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Generational Characteristics

Currently low income due to age, with growing market power Hold unprecedented levels of student loan debt More likely to be unemployed or under-employed Moving through important life stages Digital natives Passionate about civic responsibility Consume services and associate with brands differently Distrustful of banks

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THE BANKING INDUSTRY NEEDS TO IMPROVE ITS REPUTATION WITH TODAY’S 20-SOMETHINGS AND EARLY 30-SOMETHINGS.

M I L L E N N I A L S

/ R E C R U I T I N G /

The Talent Issue

June 2015 via BankDirector.com

(click to download)

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60%

…of bank CEOs & directors responding to Bank Director’s 2015 Growth Strategy Survey indicate that their bank may not be ready to serve millennials, which THIS YEAR surpassed baby boomers as the largest segment of the population.

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Banking on Millennials

Part One

Interests & Aspirations

Part Two

Trends & Opportunities

Part Three

Friends & Foes

Al Dominick, President, Bank Director & Kelsey Weaver, Publisher, Bank Director

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Can It Be This Simple*

*Today, there are approximately 75 million people in the U.S. under 34

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"The winners will be the ones that become a technology business and

not remain as an old school banking company

…it is a wrenching change."

— Rob Alexander, Capital One’s CFO

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People like convenience & expediency and that is almost

antithetical to conventional banking

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Major Topics Addressed

+ Audit & Risk Committees’ Role and Responsibilities + Changing Regulatory Environment + Risk vs the Audit Function + Top Accounting Issues for Banks

About The 2015 Attendees

$250M and below

Public vs Private Bank Asset Breakdown Regional Location

Privately Held Publicly Held

9%

54%

10%

27%

$1B + $250M-$1B

59% 46% 46% 8% 41%

263

Financial Executives and Board Members in Attendance

2015 | YEAR IN REVIEW 169

Financial Institutions Represented

CEO/Pres

5%

Chairman

5%

CFO

4%

Director

70%

Senior Bank Executive

16%

Chicago | Swissôtel Insight on Oversight

BANK AUDIT & RISK

COMMITTEES CONFERENCE

June 13, 2016

June 14-15, 2016

The relationships that community bankers nurtured for decades will be increasingly of less value with the technologically sophisticated younger generation

• f entrepreneurs who have grown up

in a digital world and value the speed with which it operates.

@BankDirector

Income growth is

expected to improve

in the future, causing positive momentum on the consumer side. How a bank responds to these trends is important: a proactive or reactive decision could make a big difference.

@BankDirector

Doug Duncan, Chief Economist June’s Bank Audit & Risk Committees Conference

Instead of millennials, banks have been finding

most of their growth in loans to businesses

and in commercial real estate.

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“The lack of home-buying activity from

millennials thus far is decidedly not because this generation isn’t interested in homeownership, but instead because younger Americans have been

delaying getting married

and having children, two key drivers in the decision to buy that first home.”

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Doug Duncan, Chief Economist June’s Bank Audit & Risk Committees Conference

RBC “romantic” videos

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Young adults aren't buying things like homes and cars because they have lower-paying jobs &

heavy student debt, not

because they don't value possessions.

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@BankDirector

Key Findings

2015 Growth Survey

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@BankDirector

@BankDirector

@BankDirector

should you (and can you) design your products and services with this information in mind?

*While this line of thinking is seductive, we think it is misguided. Millennials, like all generational cohorts, have as much that divides as unites. Treating them as a homogenous entity is likely to fail—or worse—backfire.

@BankDirector Financial service providers have an opportunity to design products and services that help households plan & save for the future. For consumers who currently save as part of a group, a savings tool that has social or community features may be effective. For individuals who say they would plan ahead if they could, a simulation tool that shows various time frames, payments options and incentives for reaching a savings goal might help consumers envision what is possible and adopt the behaviors necessary to reach their goals. By leveraging learnings from behavioral economics, such as well-designed nudges, defaults and prompts, financial services providers can design products that help consumers save automatically, plan ahead and reach their goals.

Improving Financial Health? a BIG Opportunity

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The promise of Fintech:

Cheaper / Faster / Clearer

Lending, Payments, Personal Finance, Money Transfers and Digital Currencies

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We assume you know these well-known

Disruptors

@BankDirector A Chinese based peer-to-peer lender founded in 2011 and headquartered in Shanghai, it is one of the largest peer-to-peer lender in China.

Value: $10 billion.

A U.S. based company founded in 2009, Square specializes in small business loans and online payments. Headquartered in San Francisco, it originally focused on smartphone card readers.

Value: $6 billion.

A U.K. based financial information and data provider founded in 2003, the London based company started as credit derivative pricing platform.

Value: $5.1 billion.

@BankDirector

An increasing number of new fintech start-ups* are attacking the core functions of

payments, lending, investing, money transfer & advising.

*Services such as Lending Club, Funding Circle, Nutmeg, Transfer Wise and Venmo are only the largest (and most successful) of the new entrants.

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Small Business Lending

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Consumer Lending

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Consumer Tools

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Personal Finance Management

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Robo-Advisors

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Al Dominick President

adominick@bankdirector.com @aldominick

Kelsey Weaver Publisher

kweaver@bankdirector.com @bankdirectorpub

Contact Info

BankDirector.com