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The Generations Of Financial Services Consumers
We know that kids behave differently than retirees. But what effect does age have on how consumers handle their financial lives? To answer this question, we analyzed several of our recent North American Consumer Technology Adoption Study (NACTAS) surveys to identify differences across four generations of consumers: Gen Yers, Gen Xers, Boomers, and Seniors.

Most Seniors prefer to research and apply for products at the branch -- more than any other generation. These older consumers are also the ones most likely to prefer researching a new product with a rep over the phone.

More than two-thirds of Gen Yers prefer to go online to research a new product -- the highest percentage across segments. But while these young consumers are the most likely to use the Web to open a new account, 80% of Gen Yers would still prefer to open a new account in the branch.

In fact, when it comes to solving a problem, human contact -- in the branch and over the phone -- is preferred by all groups. As with other generations, Gen Y consumers overwhelmingly prefer to use the branch and the phone for getting help with an account problem or disputing a fee. But a significant number of these young consumers -- roughly 15% -- are willing to handle issues online.

In addition to channel usage, we also examined other financial activities across generations:

• Gen Yers are the most likely to rely on recommendations from friends and family when making a purchase, banking online, or researching financial products online. They are also the generation most likely to consider purchasing additional products from their bank or brokerage.

• Gen Xers are most likely to buy or sell investments online; own auto loans, mortgages, and options; and participate in employer retirement plans, such as 401(k)s.

• Boomers are the most likely to have investment accounts, own savings accounts and home equity loans, have IRAs, and prefer getting statements via email.

• Seniors are the most likely to value brand names; own money market accounts, bonds, and annuities; prefer using the branch; and delegate investment decisions.

• Customer experience reviews. We can evaluate the usability of your Web sites, emails, and phone apps.

• Web site assessments. We can compare the features on your site with those of your competitors' sites.

• Market research. We can provide insights into consumers from our existing NACTAS data or through customized research.

• Online activity benchmarking. We can compare your firm's online efforts with those of other banks and credit unions. We are also kicking off a multiclient research project on organizational models and staffing levels.

Research Referenced In This Issue Banking Platform Wins 2005: Regions (38457) BPM Suites Support Process-Centric Makeovers Of Bank Branches (39306) Consumers Rate Financial Institutions' Online Fraud And Privacy Protection (39337) Financial Firms Should Alert More Consumers (39215) Interactive Marketing Channels To Watch In 2006 (106960) Italian Online Investing Forecast: 2006 To 2011 (38990) Navigating IT Management: An Overview (39293) The Forrester Wave™ 2005 (36769) The Forrester Wave™: Content-Centric Applications, Q1 2006 (37684) The Forrester Wave™: Governance, Risk, And Compliance Platforms, Q1 2006 (38185) The Forrester Wave™: Human-Centric Business Process Management Suites, Q1 2006 (36942) The Generations Of Financial Services Consumers (39382) The State Of FFIEC Compliance: Indecision And Worry (39410) Using Technology To Improve Your Customer Experience (39361)

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