Bank to the Future

01. EXECUTIVE SUMMARY
02. MEET THE iGEN
03. BANKING TOUCHPOINTS
04. PAIN POINTS
05. THE BANK OF THE FUTURE
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FOREWORD BY REEVOO
BANK TO THE FUTURE // #REBELTHINKING // GOOD REBELS & REEVOO // PAGE 3
"What banks need to do is change the general
perception that their job is to screw people over and
waste their time.”
So said one of our panellists, aged 22, in October
2016.
The reality is that in today’s connected world, your
brand and business is defined, not by a marketing
team or agency, but by how people experience it.
Given the general sentiment towards banking
amongst iGEN (16-25s), a seminal consumer group,
is of “meh”, suspicion and verging on animosity,
traditional everyday banking faces a significant
challenge.
There are two concepts in that last statement to
address.
First of all, the idea that iGEN are a seminal
consumer group. Not the traditional view of this
demographic segment amongst the traditional
institutions, who largely view young people as low
margin and too far oﬀ wealth to be worth the
bother. Well according to this report, this is far
from the truth, with the 16-25 age group
significantly over-indexing in intention to buy key
financial service products in the next six months:
Foreign exchange, short-term loans and most
critically, premium current accounts.
But aside from the immediate financial
opportunity, this consumer group is the customer
of the future and by understanding their attitudes,
behaviours and pain points, banks (both new-gen
and traditional) have the best possible lens on
where the sector is likely to head. If, that is, human-
centred design is taken as a given for delivering
success in a consumer-centric world.
Secondly, the idea that traditional banking is
facing a significant challenge. Unlike the last, this
statement is not likely to be widely disputed. As
investment in FinTech products has exploded over
the last 3-years, we know there are young upstarts
waiting in the wings to meet the needs of new and
underserved consumer groups. Not just the
unbanked, but also those who demonstrate a
restlessness with the way traditional institutions
fail to meet their needs and expectations. This
report provides invaluable pointers to anyone who
dares to take note, of the challenges from
consumers that are not just around the corner, but
here and very real today.
At Reevoo, we help some of the world’s smartest
companies talk, listen to and learn from their
customers with reviews, feedback and user-
generated content. It is a natural extension of our
commitment to helping our financial services
clients get closer to their customer than they ever
thought possible, to seek out the best market
intelligence and data-driven insight on a
significant scale; to help us all understand our
audience better.
To that end, this year we have partnered with
Good Rebels to deliver this latest research project
focused entirely on the next generation of
everyday banking consumers. After reading this
report, we think you’ll agree that it’s time for a
significant reimagining of everyday banking. We
hope this report will provide some provocative
thought starters on where your business should be
heading.

01.
EXEC SUMMARY
‘Meh’, suspicion, animosity and what
banks should do about it.

EXECUTIVE SUMMARY
MILLENNIALS SCHMILLENNIALS
iGEN are like the forgotten generation.
Sandwiched uncomfortably between the older
Millennnials who have come of age, stolen the
limelight and are worth something to traditional
banks; and generation Z who are still in nappies or
primary school.
Our study demonstrates that 16-25s are radically
underestimated by traditional institutions as a
consumer group. Not only in terms of immediate
intentions to buy a vast range of financial services
products, but also because their attitudes and
behaviours provide the clearest perspective yet,
from the consumer point of view, on where
banking is headed. The eldest members of the
iGEN (now 25 years old) were 10 when the first
iPod was released. The whole iGEN cohort has
grown up in the Steve Jobs era, surrounded by
iPods, iPhones and iPads as standard. This has
radically impacted their expectations as a
consumer group. Get it right for this group and
you’re the closest you will come to getting it right
for everyone else.
The reality is far from the materialistic view of
brand obsessed Millennials, iGEN value
experiences over things above all else. This means
ownership is becoming increasingly less important
to the group. Whilst access to all the things that
make life easy and enjoyable is top of the list. All-I-
can-eat entertainment through my Netflix
subscription: tick; living like a local with Airbnb:
tick; wrestling with my bank’s crap mobile app for
the next 15 minutes as my data is swallowed up:
big thumbs down…
In the study we’ve found that the key attributes
that set this group apart from other generations
are not mearly demgraphic but psychographic.
Their mindset is likely to be a key indicator of stage
in the purchase cycle for everyday banking
products. We identified 5 distinct segments in
16-25 year old iGENs.
1. Dependents
This group still rely heavily on their parents and
guardians and haven’t yet got an independent
hold on their finances. This reliance doesn’t just
take the form of money (although this is often the
case) but can also be advice on money
management.
2. Hacknophobes
This group have an inherent distrust of modern
banking procedures and the security behind them
including mobile banking and contactless
payments for example. They aren’t necessarily
tech-averse but smart enough to be remain
cautious when it comes to these new technologies
and methods.
3. Adults in training
This is a group that a large portion of the iGEN will
identify with, ascending into adulthood all of the
challenges that come with that. Faced with the
likes of savings, investments, joint accounts and
loans; this group are on a big learning curve and
tackling those issues head on.
4. Superusers
This group make it their job to know the system
and use it to their advantage. They’re likely to hold
multiple accounts with diﬀerent banks in order to
make the most of the advantages available to
them with diﬀerent providers. They’re also the
most tech savvy of the iGEN and are the first to
break into new technologies like mobile payments.
5. Checked out
They came, they saw, they became completely
dejected. This group are unimpressed by what
their financial future holds and have decided to
live in the moment instead. Often misread as
complete ignorance, this group have found time
and time again that the financial odds are stacked
against them, now making a conscious choice to
live in their overdraft and worry about tomorrow
when it comes.

EXECUTIVE SUMMARY
MEH, SUSPICION AND ANIMOSITY
iGEN are restless, not just in life, but in their
experience of everyday banking. During countless
focus groups and online panels, their frustration
was palpable. Not just from a user experience
perspective but in their entire perception and
experience of the banking industry. We worked
hard with our panel to get under-the-skin of what
the survey data told us; to understand the real pain
points iGEN’s experience in everyday banking not
just in terms of products and services but also in
terms of a very real human reaction to to an
industry that they feel completely disenfranchised
from.
Our study takes us beyond the rational, to the
emotional and its these nascent sentiments that
provide the strongest indication yet of where
banking might go in the future. The bank that can
resolve these pain points will surely be 80% there
to winning the next generation over.
1. You don’t speak my language
The language of banking is something they are
forced to learn rather than instantly connect with.
2. I’m just a number to you
Over time, instead of building a stronger
connection with their banks many iGEN consumers
feel undervalued and forgotten as their bank
chases new customers.
3. I feel like you’re out to get me
Many of the iGEN consumers we spoke to felt that
banks were working solely to serve their own
interests rather than protect those of their
customers. They feel that many banks today have
been designed to trip up the vulnerable, and lead
them into financial traps that are diﬃcult to get
out of.
4. Your technology is so limited
To iGEN great user experience facilitated by great
use of technology is not a diﬀerentiator, it’s a
hygiene factor.
5. You don’t trust me do you
Throughout this study we highlight a general lack
of trust amongst iGEN toward banks and financial
institutions. This is probably not a shocking insight
to read. But what is interesting is that this sense of
distrust swings both ways. Not only do iGEN not
trust banks, but they feel that banks do not trust
them.
6. I have to jump through so many hoops
Study participants talked about the friction and
long waiting times to solve problems that in their
minds should be fast and easy to fix, blaming old-
fashioned systems and clunky practises that aren’t
suited to modern banking.

EXECUTIVE SUMMARY
BANK TO THE FUTURE
OK, OK, so as Henry Ford once said “If I’d asked
people what they wanted they’d have said faster
horses”. This study isn’t designed to ask the iGEN
consumer what they want from banking.
Unsurprisingly they don’t’ use words like ‘fintech’,
‘blockchain’ or ‘mobile wallet’.
Instead we’ve focused on understanding what
their current experience tells us about the key
elements the bank of the future might have from a
human-centred perspective. Our panellists think
about the bank of the future in terms of the
outcome and improvements a dynamic financial
service ecosystem will make to their lives. This
concept is not new, and is very simple, and yet
start-ups and traditional institutions would do well
to refocus their eﬀorts on consumer outcomes.
So the conclusions in this report are not earth
shattering but they are designed to bring you, the
financial services industry, back down to earth.
Amongst the fintech fervour, above else, use this
report to put your focus firmly back on the end
consumer and ideally not just the consumer of
today but also the consumer of tomorrow. So what
magic potion to we recommend for developing a
proposition and product suite that appeals to the
the iGEN?
CONVENIENT
I don’t even have to think about it. This bank
makes it really easy and a pleasure to do business
with them.
SMART
This bank understands my unique situation. I’m
happy to share my personal data because I get
smart, tailored recommendations in return.
TRANSPARENT
I trust this bank – as a customer I feel it has my best
interests at heart. For the first time I don’t feel like
my bank is out to get me!
SUPPORTIVE
Finally! A bank that speaks my language and helps
me manage my money responsibly.
From the perspective of the key findings in this
report, Open Banking represents a significant step
forward in addressing the pain points, hopes and
desires of the iGEN consumer. In section 4 of this
report you’ll find extraordinary synergies between
our iGEN findings and the Open Baking movement
which point to a direction of travel for fintechs and
traditional banks alike.

EXECUTIVE SUMMARY
ABOUT
ABOUT GOOD REBELS
In today’s connected world your brand is defined, not
by a marketing team or agency, but by how people
experience it.
We are Good Rebels, an experience design and
innovation company. We create experiences that
matter.
Good Rebels is a powerful network of creative, digital,
strategy and innovation talent numbering 130 people
and 6 offices in the UK, Europe and South America.
Together we deliver projects across 5 continents in
over 28 languages for clients including: Ikea,
GlaxoSmithKline, Lexus, L’Oréal, Santander, Spotify,
Telefonica and Toyota.
ABOUT REEVOO
Millions of shoppers use Reevoo to make better
buying decisions in their everyday lives. Hundreds of
brands all over the world use our solutions to get a
better idea of what makes their customers tick.
It’s our transparent and independent approach that
makes the difference – we believe honest
communication between brand and shopper is better
for both.
Reevoo was started by Richard Anson, Ben Griffiths
and Guy Logan in 2005 to help customers choose what
to buy – not just where or when.
Today, Reevoo is seen in more than 60 countries and in
30 different languages. We’re relied on by customers
around the world to make better decisions, and by
brands to connect with their customers.

EXECUTIVE SUMMARY
METHODOLOGY
QUAL
QUANT
OFFLINE ONLINE
At Good Rebels, we have a three-pronged approach to
our consumer research. We start with immersive
techniques to develop empathy with the consumer
and to provide inspiration. Then we use large
quantitative data sources to tell us the what. Finally we
use deep dive qualitative techniques to fully
understand the why.
01. EMPATHETIC INSPIRATION
These techniques allow us to immerse ourselves into
the lives of your consumers. We draw inspiration from
understanding the hopes, desires, aspirations and pain
points of the people we’re designing experiences for.
Group workshops & interviews.
02. BEHAVIOUR AT SCALE
Survey data allows us to understand the behaviour of
our audience and spot patterns. We use large
quantitative data sources to tell us what is happening.
Survey-based audience profiling (GlobalWebIndex).
03. DEEP DIVE QUAL
These techniques are used to understand why certain
behaviour is happening. We unlock the emotion
behind specific experiences and capture the real
feelings of consumers.
Online consumer panel (Hark).
01
Group
workshops &
interviews
02
Survey-based
audience
profiling
03
Online
consumer
panel (Hark)

EXECUTIVE SUMMARY
METHODOLOGY
01. EMPATHETIC INSPIRATION
Focus groups and interviews.
16-25 year old participants = 32.
02. BEHAVIOUR AT SCALE
Survey data analysis.
Data source = GlobalWebIndex.
Full sample sizes:
16-25 year old participants = 21,240
Q3 2016 sample sizes:
iGEN = 1,484.
Older Millennials = 1,677
Gen X = 2,634
Boomers = 1,744
03. DEEP DIVE QUAL
Hark online research panel.
16-25 year old participants = 67.
SEGMENT AGE DEFINITIONS
iGEN = 16-25
Older Millennials = 26-35
Gen X = 36-51
Boomers = 52-64
About GlobalWebIndex
GlobalWebIndex (GWI) is the world's largest study on
the digital consumer. GWI surveys 34 countries and
476 local regions, representing 89% of the global
internet audience. It is conducted from a panel of
more than 12 million connected consumers, leveraged
for analytics and insights. GWI uses stratified sampling
techniques to ensure that samples are representative
of the internet population aged 16 to 64 in each
country that is researched. To do this, they conduct
thorough research into the latest oﬃcial figures from
the International Telecommunications Union, Eurostat,
Federal Communications Commission (FCC), and
relevant national statistics sources.
About Hark
Hark is Good Rebels’ own proprietary insight and co-
creation community platform, used to gather deep
human insight at scale. Our UK iGEN panel contained a
series of online activities designed to uncover the
meaning and emotion behind the 16-25 year old
consumer’s experience of everyday banking. Activities
were supported by lively forum discussions that are
fully managed and moderated by Good Rebels. The
tasks we set are intentionally creative and thought-
provoking to encourage consumers to think sincerely
about their responses.

EXECUTIVE SUMMARY
A WORD OF WARNING…
EXEC SUMMARY
THE DANGER OF ONLY SEGMENTING BY AGE
This report focuses on UK ‘young people’; 16-25 year
olds. As you will see from the findings, and particularly
some of the charts that compare this age group
against older cohorts, we have discovered some major
diﬀerences in attitudes and behaviour between
generations. But we would like to urge you not to stop
there; not to stop at demographic segmentation only,
and consider psychographic, demographic or
attitudinal segmentation on top of this to really speak
to the personal drivers of your customers.
It is a dangerous game to base your strategy on
demographic segmentation alone. 16-24 year olds are
not all one ‘type’ with the same personal motivations.
So many studies (including our own) have shown big
generational trends, and we know that the iGEN are
leading the way with some. We also feel it’s incredibly
important to understand broad shifts in this nascent
and seminal cohort. But we also understand that there
is a lot of complexity within each broad demographic
or generational segment. Therefore we recommend
layering psychographics on top and looking at your
customers through attitudinal lenses too. Which is why
in this report we also explore psychographic types
within the iGEN segment, with regards to their
relationship with money.
We hope this report serves as a handbook to help you
understand this very important banking consumer
group further, but that it also acts as a springboard to
deeper investigation and further psychographic
segmentation.

02.
MEET THE iGEN
Defining the banking industry’s next biggest opportunity

MEET THE iGEN
DEFINING THE AUDIENCE
WHO IS THE iGEN?
So much has been researched and written about the
Millennial generation (including by ourselves) over the
past five years, and as an agency we’ve seen how
brands and industries have been getting to grips with
designing for and marketing to Millennials who now in
2016 are aged between 20 and 35. But with all this
focus on the Millennial generation, we fear that
companies might have lost sight of the next
generation of power consumer; those people we used
to call ‘young people’ before the Millennial razzle
dazzle took hold. We’re talking about the current
generation in between Millennials and Generation Z,
currently aged between 16 and 25.
WHY iGEN?
The eldest members of the iGEN (now 25 years old)
were 10 when the first iPod was released. The whole
iGEN cohort has grown up in the Steve Jobs era,
surrounded by iPods, iPhones and iPads as standard.
That’s not to say that this generation are all Apple
devotees, but that the star of Apple as one of the
world’s coolest brands has been shining as long as
they can remember.

MEET THE iGEN
PICTURING THE iGEN: WHAT’S IN YOUR BAG?

MEET THE iGEN
PICTURING THE iGEN: CAN YOU JUDGE THE iGEN BY THEIR PHONE HOMESCREENS?

MEET THE iGEN
HOW THE iGEN VIEW THEMSELVES
AIMING HIGH
The iGEN is ambitious and optimistic, highly over-
indexing for always striving to achieve more in life
(68% agreed with this statement), and believing it is
important to continue to develop new skills
throughout life (76% agreed with this). 68% of iGEN
respondents said that they like to challenge and push
themselves to be the best they can.
VALIDATION SEEKERS
Peer respect is very important to the iGEN, with 68%
agreeing that it is important for them to feel respected
by their peers; making them 47% more likely than the
UK average consumer to say this. The older age groups
progressively care less about what other people think
about them, including an increased indiﬀerence to
what is ‘in’ right now and the tendency to be swayed
by other people’s opinion; something 34% of iGEN say
agree happens easily to them compared to just 16% of
Gen X. But whilst they can be easier swayed by other
people’s opinions the iGEN is least likely to want to
blend into the crowd, and they really value creativity
and looking after their appearance or image.
FIGHTING FOR EQUALITY
iGEN are passionate about social issues and equality is
high up on the agenda. Social media has opened up
activism on a global scale to intelligent and considered
activism. iGEN is 31% more likely to strongly agree that
we should all strive for equality, with 74% agreeing
with this statement.
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147
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131
120
126
120
109
102
79
82
82
89
88
68
59
65
73
89
50 70 90 110 130 150
I always strive to achieve more in life
It is important for me to feel respected by my peers
I look after my appearance/image
Creativity is important to me
I think we should all strive for equality
Index scores for each audience (100 = UK base, Answer = ‘strongly agree’’)
iGen Older Millennial Gen X Boomers
Source: GlobalWebIndex, UK, Q3 2016. Criteria for inclusion on chart: we selected statements where the
iGEN age group over-indexed most against the UK average for answering ‘strongly agree’, plus scores
when combined with ‘agree’ was voted for by over 50% of the iGEN age group.

MEET THE iGEN
HOW THE iGEN VIEW THE WORLD
GLOBAL EXPLORERS
The iGEN are open to new adventures and exploring
the world around them. The iGEN is 39% more likely to
strongly agree that they want to live and work abroad,
with 58% of the age group agreeing with this
statement in total. They consider themselves
explorers, with a huge 72% agreeing that they like to
explore the world around them. This ties in with one of
the key trends you will see later about the iGEN
valuing experiences over owning things.
TRAVELLER NOT A TOURIST
This global exploration is coupled be a genuine
interest in other cultures and lifestyles. The iGEN is
41% more likely to strongly agree that they like to
surround themselves with diﬀerent people, cultures,
ideas and lifestyles, with 67% agreeing to this
statement in total. There is a tendency towards
travelling to immerse oneself in the local culture and
taking away experiences that come from living like a
local. The Airbnb approach to travelling to experience
the ‘real’ destination is very apparent amongst the
iGEN.
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139
117
114
108
116
113
101
109
108
86
95
94
94
95
68
60
92
87
92
50 70 90 110 130 150
I like to be surrounded by diﬀerent cultures, ideas and lifestyles
I would like to work and live abroad
I am interested in other cultures and countries
I like to explore the world around me
I think it is very important to contribute to the community I live in
Source: GlobalWebIndex, UK, Q3 2016. Criteria for inclusion on chart: we selected statements where the iGEN age group over-indexed most against
the UK average for answering ‘strongly agree’, plus score when combined with ‘agree’ was voted for by over 50% of the iGEN age group.

MEET THE iGEN
HOW THE iGEN VIEW TECHNOLOGY
MY PHONE IS MY WALLET
With so much of their lives spent not just online but on
their mobile phones, it’s not surprising that 52% of the
iGEN say that they feel more insecure without their
mobile phone than their wallet. But for those feeling
strongly about this statement, they over index against
the UK average by 62%. Perhaps this is because they
are worried about what personal photos or details may
be left vulnerable, but it could also indicate the
growing utility of mobile and potentially the lessening
importance of cash and cards for payments.
ALWAYS ON
Somewhat disturbingly, 71% of the iGEN say they are
constantly connected online, and 53% say that it’s
critical for them to be contactable (online) at all times
in terms of their private lives. They are 47% more likely
than the UK average to strongly agree that they’re
constantly connected.
OPEN DATA FOR THE RIGHT REASONS
an area where the iGEN under-index is around
personal data and privacy. The iGEN is much more
open to giving out their personal data to companies,
but this comes with a caveat; that they in turn receive
some value back in terms of user experience. The iGEN
are certainly not on complete lockdown and are the
least likely age group to prefer to be anonymous
online, but their data provision must oﬀer them value
in return.
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147
130
91
86
126
123
127
95
104
76
91
90
100
97
53
48
61
112
113
40 60 80 100 120 140 160
I feel more insecure without my mobile phone than my wallet
I am constantly connected online
The internet makes me feel closer to people
I worry about how my personal data is being used by companies
I prefer to be anonymous when using the internet
Source: GlobalWebIndex, UK, Q3 2016. Criteria for inclusion on chart: we selected statements where the iGEN age group over-indexed most against
the UK average for answering ‘strongly agree’, plus score when combined with ‘agree’ was voted for by over 50% of the iGEN age group.

MEET THE iGEN
HOW THE iGEN VIEW BRANDS AND THEMSELVES AS CONSUMERS
ACCESS OVER OWNERSHIP
The iGEN have grown up with streaming services and
pay monthly models like Netflix, Spotify and car
sharing clubs for their entertainment and lifestyles and
are 56% more likely to strongly agree that they would
rather sign up for a membership to a product or
service than pay extra to own it.
THE IMPORTANCE OF EXPERT INFLUENCERS
Almost half of the iGEN say they always seek expert
opinions before buying products and services and are
51% more likely than the UK average to strongly value
the opinions of such experts during the buying
process. The internet has opened up a whole avenue
of sources available to consumers when researching
products and services to buy, and the iGEN know
where and how to find the kind of impartial, expert
advice and recommendations they need to help them
with their decisions.
BRAND LOYALISTS?
The iGEN strongly over-index even against older
Millennials for strongly agreeing that once they find a
brand they like they tend to stick to it, with 66% in
total agreeing with this statement. This demonstrates
the importance of getting the consumer experience
right, because although they are happy to shop
around and try new products and services, if they are
happy, they will remain loyal customers.
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151
149
146
139
113
135
132
116
144
141
116
80
76
76
85
88
92
44
59
75
42
85
40 60 80 100 120 140 160
I'd rather sign up for a membership to a product/service than pay
extra to own it
When buying products and services, I always like to seek an expert
opinion before purchasing
Once I find a brand I like I tend to stick to it
I am a brand conscious person
I regularly inform friends and family on new products/services
I would rather spend money on a unique experience than a status
brand
Source: GlobalWebIndex, UK, Q3 2016.

MEET THE iGEN
HOW THE iGEN VIEW MONEY
GLOBAL OUTLOOK
The first statistic on this page really surprised us. At
first glance it reverses entirely the reality of income
and investment levels in society. However there are
two very important concepts within this question that
can point to the surprising result here. The first is the
notion of affluence. 16-25 year olds may not have
huge incomes but their disposable incomes may be
perceived as much higher than older people’s with
mortgages, families, cars, repayments and pensions.
Secondly is the context of the question, and where
respondents are thinking about when placing
themselves against the average. This may be a strong
indication of the global outlook of the iGEN and older
Millennials who consider themselves more affluent
than average in the world, compared to older
generations who may be thinking of the UK average.
MONEY = SUCCESS?
Another interesting finding is the amount the iGEN
over-index for agreeing with the statement ‘money is
the best measure of success’. But whilst the iGEN are
43% more likely to agree with this statement than the
UK average, please note that only 35% of the iGEN
group agreed with this statement. Our impression is
that this result is more indicative of the iGEN being
unsure or undecided about what constitutes success,
as 37% disagreed and 28% were neutral.
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122
150
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137
121
68
79
86
97
57
49
46
64
40 60 80 100 120 140 160
I consider myself to be much more affluent than the average
I would pay more for sustainable/ecofriendly products
Money is the best measure of success
I am comfortable borrowing money

MEET THE iGEN
iGEN MONEY TYPES
iGEN IS NOT A HOMOGENOUS MASS
The iGEN is made up of students, undergrads and
young adults, and whilst generally the older the
participant the more likely they were to take an active
interest in their own finances, the 16 to 25 year old age
group is not so easily defined and divided. To help
outline what we consider to be the five main iGEN
attitudes towards finance and everyday banking,
we’ve come up with some superhero counterparts, for
the dependents, the adults in the training, the
technophobes, the financial enthusiasts, and those
iGENs who have given up completely. iGENs can fit
into one or more of the five categories, and it is
important to remember that while age and identity
might correlate, not all 16 year olds are Dependents
and not all 25 year olds are Adults in training.
Dependents
This group still rely heavily on their parents and
guardians and haven’t yet got an independent hold on
their finances. This reliance doesn’t just take the form
of money (although this is often the case) but can also
be advice on money management.
Hacknophobes
This group have an inherent distrust of modern
banking procedures and the security behind them
including mobile banking and contactless payments
for example. They aren’t necessarily tech-averse but
smart enough to be remain cautious when it comes to
these new technologies and methods.
Adults in training
This is a group that a large portion of the iGEN will
identify with, ascending into adulthood all of the
challenges that come with that. Faced with the likes of
savings, investments, joint accounts and loans; this
group are on a big learning curve and tackling those
issues head on.
Superusers
This group make it their job to know the system and
use it to their advantage. They’re likely to hold
multiple accounts with diﬀerent banks in order to
make the most of the advantages available to them
with diﬀerent providers. They’re also the most tech
savvy of the iGEN and are the first to break into new
technologies like mobile payments.
Checked out
They came, they saw, they became completely
dejected. This group are unimpressed by what their
financial future holds and have decided to live in the
moment instead. Often misread as complete
ignorance, this group have found time and time again
that the financial odds are stacked against them, now
making a conscious choice to live in their overdraft
and worry about tomorrow when it comes.

MEET THE iGEN
iGEN MONEY TYPE ALTER EGOS
Dependents a.k.a. Captain
Clingy
Captain Clingy fights
against responsibility with
the help of his trusty shield
and super safety blanket
forged from a thousand
smashed piggy banks.
When confronted with his
one weakness, insuﬃcient
funds, regular cheques from
the bank of mum and dad
are the only thing that will
restore his power.
Hacknophobes, a.k.a. The
Digital Dodger
The Digital Dodger lurks in
the shadows, away from
bright city lights, smart
phones and social media.
Her cape of invisibility
shields her from her
archenemy, the Privacy
Destroyer. Last time she
faced her foe The Dark
Dodger ended up trapped
within the Redditsphere for
weeks. Her powers drained,
she returned to her cave to
recharge.
Adults in training, a.k.a.
The Evolver
Having only recently
developed his
Shapeshifting powers, The
Evolver is training hard to
refine his skill and learn
more about the financial
foes he’ll have to face in the
future. The Evolver will have
to manage his time and
assets carefully if he’s to
have any chance in
defeating the scourge of
Ecotropolis; Student Debt.
Superusers, a.k.a. The
Juggler
The Juggler, an
exceptionally powerful
telepath, sits omniscient in
the Fortress of Finance. A
seasoned superhero, The
Juggler knows all there is to
know about money
management. Fearless, she
sets up account after
account, reaping the
benefits new customer
incentives. But, knowing
that crime never sleeps and
one day she’ll be a
Supersenior, she’s already
saving for retirement.
Checked out, a.k.a. The
Flying F***
The Flying F*** has
abandoned the once fair
city of Ecotropolis, now
overrun with dastardly
deposits and rock-bottom
interest rates. She invested
herself in Ecotropolis, but
has yet to receive anything
of value in return. It seems
the situation is hopeless, so
why stick around? The only
power she need rely on
now is the power of flight.

MEET THE iGEN
5 IMPORTANT MACRO TRENDS AFFECTING THE iGEN
As the number of young people attending university
increases, the number of 18 year olds beginning to
build up debt increases also. The university fee cap is
set to rise next year from £9,000 to £9,250 and
maintenance grants have been abolished in favour of
more loans. Just over half of 18 to 24 year olds have
said they regularly worry about money.
Young people without a degree are often overlooked
by employers, victims of academic inflation,
meanwhile graduates are increasingly finding
themselves in roles that do not meet their
expectations. Between 2007/08 and 2014/15
household income rose by 11% for those over 60,
remained stagnant for those aged between 31 and 59,
but fell by 7% for those aged 22 to 30.
The struggle to save is real and banks are not oﬀering
the same incentives to set money aside they once
were. In August 2016 UK interest rates were cut from
0.5% to 0.25%, a record low and the first cut since
2009. According to the Institute of Fiscal Studies
young people are set to be poorer than their parents
at every stage of their lives.
It’s obvious that a great number of young people are
struggling to manage their money:
•  37% of 18 to 24 year olds in debt say they do not
have a plan to repay what they owe.
•  42% said they have found managing their money
more diﬃcult than expected.
•  One in eight (12%) do not expect to ever be able to
repay what they currently owe.
Not all debt is academic either. According to Joanna
Elson, chief executive of the MAT, significant
proportions of students hold debt on credit cards,
overdrafts and to family and friends. Once in debt,
only a tiny minority (2%) will seek advice from a money
or debt advice charity and only 12% will contact a
student money advisor.
Throughout our research we found that younger
people are not necessarily aware of the support that is
available to them, but are generally grateful for a little
extra help when it comes.
RISING DEBT AND THE STRUGGLE TO SAVE 01
Sources:
Telegraph, Robert Anderson of The Student Loans
Company, October 2016
BBC, Chris Johnston, August 2016
Guardian, Peter Cheese, October 2016
BBC, Institute for Fiscal Studies, July 2016
BBC, The Bank of England, August 2016
BBC, Christ Johnston, August 2016

MEET THE iGEN
Young people are no longer limited by geography;
they are no longer exposed only to those cultures and
sub-cultures that exist in their immediate location.
Access to the internet allows young people to interact
with one another cross-culturally. They are, at the
same time, exposed to a thousand wild and wonderful
sub-cultures they might otherwise have never
encountered.
A recent study by McCann concluded that the power
of modern influencers aﬀects the way in which young
people choose to define themselves. Those aged
between 16 and 25 have access to a veritable Pick and
Mix of styles, cultures and influencer personalities to
adopt or be inspired by.
Despite what you may have heard, today’s youth are
generally label averse. This is not to say that sub-
culture is dead, we still have Afropunks, Seapunks and
Steampunks, Cybergoths and Pastel Goths, K-Pop and
J-Pop enthusiasts, and many other tribes beside,
keeping the sub-culture culture alive. However, young
people no longer feel the need to box themselves
within one or two sub-cultures, many simply take what
they want, what they’re inspired by, and incorporate
into their own ‘kaleidoscope-like’ identity.
The traditional tribe is dead and classic markers of
success and maturity, like marriage, children and
career, have been left behind in favour of a more
flexible model of ‘figuring it out’. “Micro-moments” or
small moments of personal achievement have become
a tool for measuring success, a tool made all the more
popular by the YouTube stars and online influencers
who choose to publicise their own lives as a series of
micro-moments. Rather than a distinct sub-culture,
those within the 16 to 25 age group are informed by a
variety of influencers as well as their own desire to
reach the same milestones or ‘micro-moments’ as their
favourite home-grown celebrity. iGEN culture is
formed around new and flexible milestones, accessible
and varied influencer-informed sub-cultures, and a
more fluid sense of self.
NO TRIBES, NO LABELS – UNIQUE IDENTITIES 02
Sources:
Equaliser London, Benjamin Conway, 2014
McCann Truth Central, “Truth About Youth”, June 2016
Vox Burner, Andrea Richeson, June 2016
Warc, Campaign Asia Specific, Nadia Tuma-Weldon, October 2016
“In the absence of any one, era-
defining subcultural movement – a
thousand flowers have bloomed.”
Benjamin Conway,
Equaliser London

MEET THE iGEN
Among the many monikers attributed to the 16 to 25
age group, one that’s recently cropped up is ‘The
Subscription Generation.” Nearly a quarter of UK
households subscribe to Netflix and 8 in 10 British
adults now subscribe to a product or service .
Subscription services like Spotify and Netflix are
competing with the entire concept of owning media.
“Battered by student loan debt and the Great
Recession, Millennials place less emphasis on owning
and more on sharing, bartering and trading to access
to coveted goods.” – Jilian Mincer, Business Insider
In 1987 less than 20% of 21 to 25 year olds lived in
private rents, this number has since increased to 60%.
The iGEN value access over ownership, and this
preference (or concession) is propelled by businesses
like Uber, Airbnb and car rental service Zipcar, as well
as subscription box services like Birchbox and Graze.
This ‘preference’ to rent or subscribe rather than buy
may be fuelled in part by a desire to always have
access to the best or most recent version of a product.
“To us, having access to everything is significantly
more important than claiming stake on it.” – April
Zhao, Zuora.
The 16 to 25 age group also value experiences,
particularly those experiences that can shared online
via social media and build on their own personal
brand. A study by Harris Group found that 72% of
Millennials prefer to spend more money on
experiences than on material things. This preference
is drive by a desire to be recognised and build a
following, as well as a general ‘fear of missing out’.
Whether it’s a preference or a practical response to a
collapsing economy, the iGEN is no longer investing in
housing and cars. The 16 to 25 year old age group is
eco-conscious, pessimistic about their financial future,
and more inclined to share their experiences online
than ‘waste time’ struggling up the property ladder.
ACCESS OVER OWNERSHIP 03
Sources:
The Guardian, Jasper Jackson, March 2016
Vodzilla, Ivan Radford, June 2016
New Statesman, Joe Smith, April 2016
Business Insider, Jilian Mincer, May 2015
Cio, September 2016
Zuora, April Zhao, August 2015
Uptin Saiidi, CNBC, May 2016
CNBC, Taylor Smith, May 2016
“We aren’t spending our money on
cars, TVs and watches. We’re
renting scooters and touring
Vietnam, rocking out at music
festivals, or hiking Machu Picchu.”
Taylor Smith,
CEO and co-founder of Blueboard

MEET THE iGEN
The ‘instant gratification’ generation are accustomed
to high-speed Internet access, next day-delivery,
instant streaming, online banking and contactless
payment. Now some retailers are offering same-day
delivery, Wells-Fargo has been experimenting with
pre-staged transactions allowing customers to queue
up banking transactions from their phones in advance
to save time in branch , and the Amazon Dash button,
introduced earlier this year, is a Wi-Fi connected
device which allows customers to reorder their
favourite products with the press of a button.
The demand for instant gratification is shaping the
future of retail, media and banking. In a survey by
Trustev, 56% of young people said they expected
retailers to have the option of same-day delivery. A
separate survey conducted by Coldwell Banker
Commercial Affiliates reported that 64% of young
people were more likely to make a purchase from a
retailer that offered same-day delivery. The
introduction of Click and Collect at John Lewis over
the Christmas period accounted for 56% of online
orders. Metro Bank have offered same-day bank card
replacement since 2010. The 16 to 25 year old age
group are no longer satisfied with next-day delivery or
basic mobile apps with limited capabilities, they crave
immediacy.
“This mobile app is simply too slow and hard-to-use,
and in the technological age, this is simply
unacceptable.” – Charlie, iGEN study participant.
Only innovation will satisfy this craving; efficiency is
expected and immediacy is what industry leaders
should be aiming for. The iGEN want what they want
and they want it now.
INSTANT GRATIFICATION 04
Sources:
The Boston Globe, Christopher Muther,
February 2013
Wells Fargo Media, Wells Fargo’s Culture of
Innovation, May 2016
The Boston Globe, Christopher Muther,
February 2013
The G-Brief, February 2016
Campaign Live, Sara Spary, January 2015
“The need for instant gratification
is not new, but our expectation of
‘instant’ has become faster, and as
a result, our patience is thinner.”
Narayan Janakiraman,
The Boston Globe

MEET THE iGEN
Traditional celebrities are not as popular with the iGEN
as they were with generation that came before and
branded messages do not resonate in the same way.
The 16 to 25 year old age group want real
recommendations from ‘real’ people. According to
Nielsen, 92% of them would trust recommendation
from individuals (even if they don’t know them
personally) over brands. This decline in trust in brands
has driven the rise in Influencer Marketing which
according to Technorati is now a £156M industry.
70% of young YouTube subscribers say they relate to
YouTubers more than to traditional celebrities, and 6
in 10 would follow advice on what to buy from their
favourite creator over their favourite film or TV
personality. Linear TV viewing is declining every year
and according to McKinsey word of mouth is the
primary factor behind 20 to 50% of all purchasing
decisions.
It is important to remember, however, that the
relationship between the iGEN and modern
influencers is built primarily on trust and a sense of
accessibility and authenticity. If paid posts and brand
sponsorships from vloggers, instagrammers and
bloggers aren’t authentic or relevant, the iGEN will
simply choose to ignore.
“When a brand partners with an influencer it is not a
two-way exchange…the audience’s relationship with
the influencer is the trust on which successful
influencer partnerships pivot.” – James Stafford, The
Drum
The influencer marketing ‘trend’ is no longer
‘emerging’, it’s here and it would seem it’s here to stay.
The iGEN looks for community; relatable personalities
they can develop friendship-like relationships with.
Platforms like YouTube, Twitter and Instagram are
getting better at providing valuable consumer insights
and brands and businesses are getting better at
recognising the benefits of long-term relationships
with social influencers and their audiences.
TRUST IN ‘REAL’ PEOPLE 05
Sources:
Nielsen, Marisa Grimes, April 2012
PR Newser, Patrick Coffee, March 2015
Nielsen, Marisa Grimes, April 2012.
Think With Google, Celie O’Neil-Hart and Howard
Blumenstein, July 2016
NeoReach, Misha Talavera, June 2016
McKinsey, Jacques Bughin and Jonathan Doogan
and Ole Jørgen Vetvik, April 2010
NeoReach, Misha Talavera, June 2016
The Drum, James Stafford, July 2016
The Guardian, Timothy Armoo, September 2015

03.
TOUCHPOINTS
How the iGEN see and interact with banks right now

BANKING TOUCHPOINTS
HOW DOES THE iGEN SPEND THEIR MONEY?
WHAT DOES THE iGEN SPEND THEIR MONEY ON?
The iGEN is constantly transitioning; from student to
undergrad, to adult in training with a laundry list of
new responsibilities. How much money they set aside
to pay for rent, bills, travel and transport generally
depends on their age and level of dependence. Still,
on average iGEN participants spend 36% of their
income on household bills and rent, and only 12% on
entertainment and leisure. More money was spent on
public transport than on maintaining cars or personal
vehicles, and travel and transport made up only 8% of
the average monthly spend. Only a few older
participants had begun to pay oﬀ their student loans,
but those who were were setting aside up to 15% of
their monthly income for the purpose of repayment.
With most students relying on state funded education,
their parents or student loans to fund their education,
on average only 1% of earnings was spent on
Education. Hobbies and clothing are treated as non-
essentials, benefitting from a combined 6% of monthly
earnings.
DOES THE iGEN SAVE?
Despite the fact that interest in the economy has been
on the decline, the iGEN is still either investing or
setting aside, on average, 20% of their monthly
earnings. Savings and investments concern the iGEN
greatly, with 48% of panellists citing low interest rates
or a lack of ROI as their main reason for switching
banks in Q2.
Bills/rent
36
Savings/
investments
20
Food/monthly
shop
15
Entertainment/
leisure
12
Travel/
transport
8
Misc.
3
Clothes
3
Hobbies
3
Education
1
Student loans
1
Breakdown of monthly iGEN expenditure (%)
Source: Hark, activity 3: Think about your monthly expenditure. How does it break down?
Draw/create a pie chart visualising the breakdown of your monthly spending in percentages.

BANKING TOUCHPOINTS
WHAT KIND OF SAVINGS DOES THE iGEN HAVE?
WHAT KIND OF SAVINGS/INVESTMENTS DOES THE
iGEN HAVE?
More than you would expect. 72% iGENs have some
kind of savings or investment, which is only three
percent under the UK average of 75%. But as to be
expected, the value of these investments is where the
major generational diﬀerences arise, generally with
older age groups having higher value investments.
When examining the types of investments the iGEN
hold, they under index for stocks and shares but
interestingly slightly over index for alternative
investments such as gold or art and antiquities.
71.8 75.4 73.4
79.6
0
20
40
60
80
100
iGen Older
Millennial
Gen X Boomers
% audience that has savings/investments of
some kind
57.9
13.6
8.2 7.5 6.4
2.4
64.58
21.09
12.29
9.19
6.53
2.95
65.04
22.1
5.51
8.32
4.2 2.97
71.89
29.55
3.84
8.04
4.73 3.51
0
10
20
30
40
50
60
70
80
Cash/savings/pension Stocks/shares/bonds Gold Property (other than the
house you live in)
Art/antiques Other
% audience with each savings/investment type

Focus group activity: How do you
manage your money?
1.  What do you use money for?
2.  What issues do you have with
managing your money?
3.  What tools help you manage
your money?
4.  Who do you go to for money
advice?
BANKING TOUCHPOINTS
iGEN’S RELATIONSHIP WITH MONEY

BANKING TOUCHPOINTS
IS THE iGEN INTERESTED IN FINANCE?
INTEREST IN FINANCE BACK ON THE RISE
The two charts on this page display the interest
levels of the iGEN age group (16-25) compared to
those of older age groups over time towards two
topics; the economy/finance and personal finance/
investments. Interest in the economy amongst the
16-25 age group had been on the decline for the
past three years, however 2016 has shown a
resurgence of interest amongst all age groups;
potentially a response to heightened political
awareness in the year of Brexit. The same cannot
be said for interest in personal finance and
investments however, which is a topic that has
been in decline since 2012 with only 15% of iGEN
having a strong interest in this topic in Q3 2016.
With both topics we see a proportional increase in
interest levels with age, with lowest interest levels
amongst the younger people in the study. Please
note in these charts that we are tracking the age
groups of those current cohorts over time, rather
than the generations themselves.
0
5
10
15
20
25
30
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Strong interest in the economy/finance
16-25 26-35 36-51 52-65
0
5
10
15
20
25
30
35
40
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Strong interest in personal finance/investments
16-25 26-35 36-51 52-65
Source: GlobalWebIndex, UK, Q4 2012 to Q3 2016.

BANKING TOUCHPOINTS
IS THE iGEN INTERESTED IN FINANCE?
FINANCE TOPICS ARE AMONGST LEAST POPULAR
But despite a slight interest in the economy and
finance in 2016, the iGEN is still much more interested
in other topics over finance and investments. From the
list of 33 topic options, the iGEN put economy/finance
fifth from bottom and personal finance/investments
third from bottom, beating only gardening and
gambling as topics of interest.
TOP FIVE iGEN INTERESTS
•  Music (67%)
•  Film/movies (66%)
•  Gaming (51%)
•  Television (48%)
•  Food/restaurants/cooking (46%)
BOTTOM FIVE iGEN INTERESTS
•  Gambling (9%)
•  Gardening (9%)
•  Personal finance/investment (15%)
•  Business (16%)
•  Economy/finance (17%)
iGENS ARE THREE TIMES MORE
LIKELY TO BE INTERESTED IN
GAMING THAN THE ECONOMY
iGENS ARE TWICE AS LIKELY TO BE
INTERESTED IN PHOTOGRPAHY
THAN PERSONAL FINANCE

BANKING TOUCHPOINTS
iGEN AND ONLINE SHOPPING
iGEN LEAD THE WAY FOR MOBILE SHOPPING,
FROM RESEARCH TO PURCHASE TO SELLING
iGEN are the most likely of all ages to use their mobile
phones for online shopping. For all age groups, online
shopping is now so mainstream that when you look at
online purchases across all devices, there is very little
variation in behaviour between age groups. The major
variations come from looking at shopping activities
including purchases made using a mobile phone/
smartphone, with just 15% of Boomers doing this
compared to 52% of iGEN.
67
52
20
67
49
23
77
36
21
77
15 17
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
PC/Laptop Mobile phone/smartphone Tablet
% audience using each device to purchase products online
69
61
52
25
63
59
49
22
53
46
36
12
31
27
15
4
0 10 20 30 40 50 60 70 80
Searched for a product or service you want to buy
Visited an online retail site or store
Purchased a product online
Sold a product online
% audience using mobile phone/smartphone for diﬀerent online
shopping activities

BANKING TOUCHPOINTS
iGEN AND MOBILE PAYMENTS
Source: GlobalWebIndex, UK, Q3 2015 to Q3 2016.
29
24
15
6
0
5
10
15
20
25
30
35
% audience that used their mobile
phone to pay for an item/service
0
2
4
6
8
10
12
Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016
Apple Pay users (in last month)
16-25 26-35 36-51 52-65
29% iGEN REGULARLY PAY FOR ITEMS AND
SERVICES WITH THEIR MOBILE PHONE
Following the mobile-first trend from the previous
page and throughout this report, the iGEN are the
age group most likely to regularly use their mobile
phone to make payments. 29% use their phone to
pay for items/services compared to just 15% of
Gen X and 6% of Boomers. This includes mobile
payments in shops but also mobile app payments
for services like Uber or Deliveroo. Although iGEN
consumers are comfortable using their mobile to
undertake a wide variety of activities, they are
currently more likely to use their phone to pay for
an item/service than they are to use QR codes
(14%), voice control (26%), MMS (27%), or oﬃce
software (18%).
APPLE PAY USED BY 10% OF iGEN
Although UK adoption is still low, Apple Pay as a
method of in-app or in-store payments is
especially on the rise amongst the iGEN.
Traditionally adoption has been led by Older
Millennials but in the last quarter iGEN just passed
them with 10% iGEN that have used Apple Pay in
the past month. A further 10% say they are
interested in using it in the future.

BANKING TOUCHPOINTS
THE IMPORTANT MILESTONES IN iGEN’S BANKING LIVES
TRIGGER 1
✪  Birthday money
✪  First part-time job
TYPICALAGE
Take control of bank
account
Convert to student
account
Shop around for
rewards
10 14 16 18
Bank account set up
by parents
Choose first bank
account
12 20 22 24
TRIGGER 2
✪  Going to university
Choose new student
account
TRIGGER 3
✪  Finished university
✪  New home
✪  First ‘proper’ paycheck
Savings, joint accounts,
mortgages
Try alternative solutions
Get credit card or
short-term loan

BANKING TOUCHPOINTS
PRE-16 BANKING TOUCHPOINTS
FIRST BANK ACCOUNT IS OFTEN SET UP BY
PARENTS
Most UK young people already have a bank account
by the time they reach their teens, but they are often
not very connected to it. The first bank account is
often set up by parents for their children, sometimes
when the child is very young or just born. iGENs have
been aware that they had bank accounts, and
sometimes aware of their accessible funds but until
reaching secondary school age these accounts are
very much managed by the parents.
TAKING CONTROL
For the majority of cases where a bank account already
exists, there comes a moment in time where the
young person wants to take over control of their bank
account. Many iGENs we spoke to recalled the coming
of age moments when they had easy access to their
own cash and developed more of a connection and
awareness of their personal finances. For some iGENs,
there was a specific trigger point that prompted them
to take the reins of their bank accounts from their
parents (either formally via the bank or informally via
parental handover) but for others it was an
incremental part of growing up.
TRIGGER POINTS
Coming into money is a common motivator for iGENs
to want to take control of their bank accounts. As they
get older, they are more likely to be given money for
birthdays and Christmases and need somewhere safe
to keep this. They need a way to convert any cash they
are given or they make into money they can spend
online – something 81% of the UK iGEN regularly does.
As young people move into their teens, they are given
the freedom to go out shopping or to the cinema with
their friends. This moment often marks the need to
have a cash card or debit card to buy things with when
they’re away from their parents. Finally, from age 14,
many iGENs talked about getting their first part-time
jobs and needing to control their wages and
expenditure. These jobs included working in shops,
cafes, hairdressers, babysitting, walking dogs, pot
washing, flyering or car washing.
CHOOSING A FIRST ACCOUNT
For the majority of the iGEN, their first account was
already set up by their parents. But for the few without
a bank account by the time they hit their teens, they
chose one for themselves. At this time they were
heavily influenced by their family and friends, or
signup rewards and incentives.
“As long as I can remember my
whole family has been using
HSBC. Even my grandparents.”
Greg T
“…members of my family used it
and recommended it to me as it
was reliable. There is also a local
branch nearby if I ever need
support or guidance.”
Caleb P

BANKING TOUCHPOINTS
STUDENT BANKING TOUCHPOINTS: PRE-UNIVERSITY
CHOOSING A STUDENT ACCOUNT
When it comes to selecting the right student account
for university or further education, the iGEN consumer
is essentially a free agent. They are not especially loyal
to or tied down to their existing bank and are open to
setting up a new student account elsewhere given the
right terms or incentive. iGEN consumers on their way
to university shop around for the student account that
suits them best, and despite very compelling one-off
incentives (or “bribes” as some iGEN students called
them) including Amazon vouchers, railcards, coach
cards and cashback iGEN consumers carefully consider
the less exciting but often more important offerings
like interest-free overdraft limits and account charges
or fees.
MAIN CONSIDERATIONS
According to the iGEN there are three main
considerations when choosing a student bank
account:
1.  Recommendations from family and friends
Parents often do a lot of research on behalf of
their children and consult broadsheets and
finance media to understand the best deals on the
market. As with university selection, student bank
account selection is often a collaborative process
between iGEN student and parent/s.
2.  Interest-free overdraft
iGEN students know that the availability and size
of their student overdraft is one of the most
important safety nets that will support them
financially through university. They compare
banks based on the amount of 0% overdrafts
offered, taking into account increases over the
years at university.
3.  An accessible branch
Interestingly for this digital consumer, having a
branch on-campus or within easy access was a
major selling point. As we will see later in this
report the iGEN has a real need for face-to-face
interaction when it comes to banking, especially
when it comes to making decisions around loans,
overdrafts and credit.
SOURCES OF ADVICE
As outlined above, even though student accounts now
are completely different to the student accounts their
parents may have had, the iGEN are still heavily
influenced by their family when it comes to selecting
their student account. Older siblings are a trusted
source of information, as well as talking to peers either
‘in real life’ or in online student communities like The
Student Room. Money Saving Expert was another
popular trusted source of advice.
“I signed up with [Barclays]
initially because they offered the
best student overdraft -
something I was sure I’d need to
dip into during my time at
university…”
Amarinder C
“If I’m looking for advice on
choosing a bank account I’d go
to older people, because they’ve
done it before. They’ve probably
done it multiple times in their
lives.”
Michael

BANKING TOUCHPOINTS
STUDENT BANKING TOUCHPOINTS: DURING-UNIVERSITY
FIRST CREDIT CARD
It is not uncommon for students to get into financial
diﬃculties whilst at university, especially those less
dependant on their parents for financial support.
During their time at university many iGEN students
acquire their first credit card to supplement their
maxed-out overdrafts. However they don’t make these
decisions lightly and much prefer in-branch, face to
face advice primarily to make sure they understand
the terms and conditions of their first credit card.
Written terms and conditions on websites and forms
often confuse, bore or annoy iGEN consumers, and
they need the human interaction for added trust. One
of the major themes from this study concerned trust,
and the feeling that banks are “out to get me”. The
iGEN don’t want to be caught out by terms and
conditions so prefer to talk these through with
someone face to face, someone they can ask questions
to, to help build trust for what is a big financial
decision.
SHORT-TERM LOANS
Often seen as a last resort but occasionally used by
iGEN students towards the end of term (when they
know they have another loan payment coming soon),
short-term loans or ‘payday loans’ have become highly
stigmatised necessary evils for some iGENs. 9% of UK
iGENs said that they expected to use a short-term loan
(less than 30 days) within the next six months, and are
the age group most likely to do this. When asked
about short-term loans, the iGEN have a clear
repulsion to them, but are still the age group most
likely to use them.
“…when I got my first credit
card, I went into the bank and I
must have spent an hour and a
half with the lady in there who
set it all up for me, she got the
app on my phone and she
explained all the terms and
conditions to having a credit
card. I’m glad she was the one
helping me because I had no
idea what I was doing.”
Lucy M
9.4
8.0
3.6
2.2
0
1
2
3
4
5
6
7
8
9
10
% audience intending to purchase short-term
loans within 6 months

BANKING TOUCHPOINTS
POST-UNIVERSITY BANKING TOUCHPOINTS
SHOPPING AROUND
Although the iGEN tend to feel less valued as bank
customers due to their younger age and smaller
balances, they are well aware of the power they hold
as potential new customers. iGEN consumers are
comfortable holding multiple bank accounts and
switching to new banks that offer attractive rewards
and benefits to new customers. Once they have a
stable salary and are confident they can meet the
monthly deposit terms, they are happy to shop around
and switch accounts to pick up the incentives.
POST-STUDENT PRODUCTS
Into their 20s, UK iGEN consumers are looking for
different types of financial products from their banks.
Living independently, bank accounts that offer
contents insurance or cashback on paying bills
become more attractive. Money moments like moving
in with a partner and getting a joint account, or paying
into a pension all start to become duties to tackle.
PREMIUM CURRENT ACCOUNTS
The iGEN is the largest prospective market for
premium current accounts, with 10% of UK online
iGENs saying that they intend to purchase one within
the next 6 months. Older more independent iGEN
consumers in our study discussed the benefits of
getting their insurance, rewards and lifestyle benefits
all as part of their premium account package, praised
mainly for the convenience this offers them. The
Adults in training iGENs feel secure knowing they have
got the majority of important things covered with
their bank account’s premium package, and they don’t
have to shop around getting quotes or renewing
policies independently.
ALTERNATIVE BANKING SOLUTIONS
Part of the ‘Shopping around’ that iGEN consumers do
also involves challenger banks and alternative banking
solutions. iGEN Superusers are wooed by the
technological superiority of mobile-only challenger
banks like Atom, Monzo and Starling, favouring the
fresh approach to money management and slicker
user experience.
“My friend says the worst thing
you can do is stay with the same
bank for so many years, when
you’re our age, not when you’re
old. You get better deals on
interest rates, they’re more
flexible.”
Victoria
“Now that I’m an adult, well more
of an adult, and I’ve got my own
place, I need the home insurance,
the free travel insurance, it’s
great.”
Victoria
10.0
9.4
3.9
2.7
0
2
4
6
8
10
12
% audience intending to purchase premium
current accounts within 6 months

BANKING TOUCHPOINTS
MYSTERY iGEN SHOPPING AT METRO BANK
A friendly staff member seated me in an open
waiting room as soon as I arrived. My name was
taken and I was seen seven minutes later. I was
sat by some disgruntled customers both trying to
close their accounts, which didn’t fill me with
confidence but the woman I spoke to during my
appointment was very reassuring. I was asked if I
wanted to set up an account that day, which is
possible if you bring some form of photo ID. All
accounts are free to set up and while they do not
offer a student account, they do have accounts
for under 21s and learner accounts for young
teens and children. Rather than a sit down
appointment, I was taken on a tour of the bank.
When I asked about interest rates I was told that
Metro do not offer interest on their current
accounts, they do however offer instant access
saver accounts, fixed rate cash ISAs and instant
access cash ISAs. Fixed term savings account
(0.90% to 1.20% AER) and Young Saver Accounts
are also available. According the woman I spoke
to, Metro is planning on introducing finger print
recognition to their banking apps some time in
November 2016. Customers can also save when
travelling with no-fee transactions within Europe.
The Metro banking app allows customers to put a
temporary block on their phone if they think
they’ve lost it. This block is easy to remove if, for
example, you realise your card was in your pocket
the whole time. This feature could prove
invaluable to younger customers unused to the
responsibility of carrying a debit or credit card, or
a first year Fresher out of their comfort zone.
Unlike most banks I visited, Metro can provide
customers with a new card the same day it’s
requested, as long as the customer makes the
request in branch and brings some form of photo
ID with them.
For students and young professionals the Money
Machine allows customers to save on a micro
level. Change can be converted into cash,
donated to charity, or transferred straight into an
existing account. This service is available to
customers and non-customers alike and Metro
does not take a cut.
Other, less necessary services like treats for pets,
educational games for children, the payment of
admin fees when adopting a pet from Battersea
Cats and Dogs Home, and free merchandise, even
when not relevant suggest an attention to
customer service that goes above and beyond.
The appointment lasted around 20 minutes, and
felt very slick. The tour felt quite rehearsed and
the approach was very ‘American’. Metro is
relatively new and has not had time to build the
same level of trust with customers as more
traditional banks native to the UK. That said, most
banks are struggling to regain trust post-
Recession and so with that in mind the Metro
culture is quite refreshing. The interior aesthetic
was very new, very clean and very shiny. I was
offered a great deal of informational material,
lollipops and a pen. Metro opening times are
incredibly convenient. Metro is open seven days
a week, from 08:00 to 20:00 during the week,
from 08:00 to 18:00 on Saturdays and from 11:00
to 17:00 on Sundays.

BANKING TOUCHPOINTS
MYSTERY iGEN SHOPPING AT CO-OPERATIVE BANK
Initially I, along with two other customers
queuing at the information desk, were ignored
by stressed out staff members. After about ten
minutes of waiting I was seated in a small, but
comfortable waiting room. I was offered tea,
coffee or hot chocolate to drink while I waited.
There were not a lot of customers in branch but
the staff seemed swept off their feet. Later the
employee I sat down with would apologise for
the wait and blame it on the popularity of the
bank and the limited number of physical
branches in the area. According to the women
who sat next to me, “the Brighton branch is
usually very quick.”
The staff seemed to know some customers very
well. They were beckoned in branch and the staff
stopped to have a quick chat with them. For
those loyal and local, long-term customers the
atmosphere at the Co-Op was casual and homely.
After ten minutes or so I was seen by the one
employee available to talk more casually and
answer general questions. Immediately I was
asked if I was opening an account because I had
seen the adverts plastered around town offering
£150 for switching accounts. It turns out the offer
was only available if you were to open an account
with four active direct debits. This offer then,
does not necessarily work as an incentive for
younger bankers who do not yet need to pay
their own bills or rent. There was no charge for
setting up an account and the employee I spoke
to said Co-Op could offer a 36-month redirection
service. I asked specifically about student
accounts, but was not told much about them. I
said I was considering applying for a Masters
degree and he went on to tell me about the
three-year student overdraft scheme in detail, a
scheme that would not be relevant to me as a
Master’s student. Students are allowed a year
before they must begin paying back their
overdraft. Their financial planning service is,
unfortunately, no longer available.
Generally, the staff were polite and the employee
I spent the most time with described his time
working at the Co-Op in a casual, affectionate
way. Unfortunately he was also very pushy,
signing me up for a follow up appointment after I
said no to one several times. As I was leaving he
called after me to say he was pencilling me in for
Thursday and I received a text alert on the day
reminding me of my appointment.
One reason the Co-Op Bank appears to be so
popular is because they offer Cashminder
accounts, for people who might not be eligible
for other accounts. The Cashminder account is
available as a joint account and does not include
any overdraft, chequebook or monthly account
fee.
The appointment lasted around 15 to 20 minutes.
The Co-Op bank is open Monday to Friday from
09:30 to 17:00 and on Saturdays from 09:30 to
13:00. The bank is closed on Sundays. For a
young professional, these times are not
particularly convenient but these opening times
are consistent with most other high street banks.
The bank aesthetic was simple and clean, but a
little rough around the edges. I was offered some
informational material, the contact card of the
employee I spoke to, and an hour-long follow up
appointment.

04.
PAIN POINTS
Why banks are driving the iGEN mad

PAIN POINTS
INTRODUCTION
ABOUT THIS SECTION
We analysed the problems our iGEN study participants
face with everyday banking and categorised them into
six major pain points.
Major pain points present huge barriers to iGEN
adoption and trust of their banks and the banking
industry in general. The major pain points represent
the human feelings and attitudes of the iGEN in the UK
today, and are the reasons this group of consumers
feel that banking today is not relevant to their needs.
Banks that can tackle both these pain points stand the
chance of becoming more relevant to the iGEN and
building aﬃnity with them.

PAIN POINTS
BREAK-UP LETTER TO A BANK MANAGER
Dear Bank Manager,
I am writing to you today because I have made the
decision to close my accounts with you and switch to a
new bank. While I have been with the bank for many
years now there are a few issues which have led me to
make this decision.
The first is an issue which has weighed on my mind since I
first opened an account with your bank. When I first
opened my account I had just recently moved to England,
and the customer service representative I dealt with
made me feel as though I would not be approved to have
a free account, and that I would need to get an account
with a monthly fee. I'm sure you'll agree that those tactics
were dishonest and not the kind of first experience you
would want a customer to have of your bank.
The second issue is your bank's decision not to support
android pay when it was released a few months ago. I
believe this speaks volumes about your banks vision of
the future, and I am not content to stay with a bank that
are behind the technology curve. I believe the banking
industry is set to go through dramatic changes in the
coming years, with the rate of technology changes only
increasing and the advent of game changing financial
technologies such as crypto currencies and the block
chain. If your bank cannot support something as
relatively simple as android pay, how will it fare when
these technologies mature and shake up the banking
industry?
In short I need a bank that embraces new technologies
and so I shall be switching banks to a more forward
looking bank.
Thank you for your time.
Kind Regards,
Ryan
Hark activity 2
Imagine you're about to switch banks.
Think of the main reason/s you'd want
to switch. Compose a break-up letter
to your bank manager, cancelling your
account, explaining why you want to
switch.

PAIN POINTS
MAJOR PAIN POINTS: OVERVIEW
YOU DON’T SPEAK MY
LANGUAGE
YOUR TECHNOLOGY IS SO
LIMITED
I’M JUST A NUMBER TO
YOU
I FEEL LIKE YOU’RE OUT
TO GET ME
YOU DON’T TRUST ME,
DO YOU?
I HAVE TO JUMP
THROUGH SO MANY
HOOPS
1
2
3
4
5
6

PAIN POINTS
MAJOR PAIN POINT 1: THE LANGUAGE OF FINANCE
The iGEN express a lot of frustration when entering the
world of banking and financial services, because of the
way account services and terms are presented to
them. The language of banking is something they a
forced to learn rather than instantly connect with.
They feel that the odds are against them from the start
and it is difficult to find the information and advice
they need to make smart decisions with their money.
Many are unfamiliar with even the most commonly
used terminology like Current accounts, or the
difference between Debit and Credit cards. Add to this
the jargon and never-ending terms and conditions
and it makes these consumers feel like banks have
something to hide.
The iGEN crave uncomplicated straight-talking advice
to help ease them out of the feeling of intimidation
when presented with the need to make decisions in an
alien language.
But it’s not just direct translations and explanations of
terminology that the iGEN need; they’d like a more
open and impartial conversation about the financial
options available to them. The iGEN does their
research online before buying and this includes
financial products. But for big money moments they
want to also talk to someone face to face that speaks
their language and can make recommendations to suit
their personal situations.
So many iGEN consumers currently go to their parents
as a first port of call for financial advice partially due to
their lack of trust in banks but also because of the
barriers that banks themselves have created between
them and their younger consumers. When talking
about what they wanted from their bank, the topics of
clarity, simplicity and transparency in communication
came up frequently.
The risk of not providing younger consumers with a
less alien way of communicating banking services is of
increasing the disconnect that the iGEN feel between
themselves and their banks. Banks that don’t speak
their consumers’ language create a feeling that their
products and services ‘aren’t for me’ which in a
competitive market landscape is a big risk to take.
YOU DON’T SPEAK MY LANGUAGE 01
“To me, finance and banking
beyond the day to day is quite
intimidating. My ideal solution
would be a free service offering
impartial advice and
information to help myself and
others to move forward in the
financial world and take big
steps like buying a house,
taking out a loan or making
solid investments.”
Natasha

PAIN POINTS
MAJOR PAIN POINT 2: LACK OF PERSONALISATION
The iGEN are savvy consumers and are very open to
switching to a new bank or simply opening a new
account elsewhere if they feel they can get a better
deal or feel more valued at another bank. Many iGEN
consumers feel no particular loyalty towards their
bank/s even those that have been with the same bank
for many years. In fact, the iGEN are so aware of the
benefits new customers can receive that they feel
unfairly treated as existing customers.
Over time, instead of building a stronger connection
with their banks many iGEN consumers feel
undervalued and forgotten as their bank chases new
customers. They feel that interest rates, cash rewards,
other benefits and other incentives do not reward
loyal customers but are only there to attract new
customers. This leads savvy iGENs to switch entirely or
to open new accounts and move their main financial
dealings to the bank oﬀering the best incentives,
letting their old accounts lie empty and unused.
However the feeling of being undervalued and
overlooked is not just about preferential rates and
rewards elsewhere. iGEN customers that have been
with their banks for some time feel that they deserve
more of a personal service once they’ve demonstrated
how they manage their money.
They feel the amount of data that banks build up on
the personal finance habits of their customers should
be put to better use by oﬀering personalised
recommendations and advice. iGEN are more likely
than older consumers to forego some of their privacy
if it means a resulting increase in relevance and
personalisation, and they don’t understand why banks
can’t treat them in a more tailored way, given all the
data they have on them. When we asked our
participants whether their bank knows too much
about them, the majority said yes. But when we asked
how they felt about that, the vast majority agreed it
was fine as long as they benefitted from it.
The iGEN want their bank to pay attention to their
unique needs and situation, and to treat them as
individuals rather than treating every customer in the
same way.
I’M JUST A NUMBER TO YOU 02
“Every year that passes I feel more
like a number than a person.”
Celia
“I feel that new customers are
valued more than long term
customers and I want to find a
bank who values both."
Cat

PAIN POINTS
Dear Bank Manager,
I have decided to close my existing account with your
bank. Let me briefly explain the reasons below.
I have held this account for almost 2 years, and moved a
considerable amount of money in and out of it. When I
opened the account, I did not get the most basic type of
account but one that met all my daily banking needs. Fair
enough, I never had to pay a penny to keep this account
open, but I did not get any advantages with it neither.
During the time I had this account open, I was never
offered any kind of overdraft facility (which, as a new
customer did not get, understandably) or any other kind
of perks.
Not that I would have liked to have an overdraft, but after
the initial hassle of opening an account and going
through all the checks and feeling a bit uncomfortable by
sensing that the banking industry does not trust a
newcomer, it would have been nice for you to say "Well,
you have proved to us that you are a nice and loyal
customer".
At the moment it kind of feels like that I am trusting you
with all my money, and all I get back in return are some
shopping offers that prompt me to spend more money
than I actually want.
You see, I never needed any special services from you. I
did not look for flashy titles of "best customer service" or
anything like that. I just needed a place where my money
is safe and accessible, which is what I got. However, since
you never even gave me a nod indicating that you trust
me now, only offered me account upgrades for fees I did
not want to pay, I decided that I am moving my money to
a different bank.
Nowadays, it is easier that ever to move all my banking to
a different place - and there's always a bank that will give
me a nice bonus to do so. I could even move my account
around every year or even twice a year, and earn a couple
of hundred pounds in the process, or remain with you
while you are sitting on all my savings and monthly
budget for nothing in return - probably turning all my
money around meanwhile for a good profit that I never
see anything of.
Well, I think all of the above is enough reason to finally
close this account.
Yours,
Gergo
Hark activity 2
switch.

PAIN POINTS
MAJOR PAIN POINT 3: EXPLOITATION AND DISTRUST
Many of the UK iGEN consumers we spoke to felt that
banks were working solely to serve their own interests
rather than protect those of their customers. They feel
that many banks today have been designed to trip up
the vulnerable, and lead them into financial traps that
are difficult to get out of.
Although not all iGEN feel discriminated and preyed
on by banks because they are young, there is the
common view that banks treat those with less money
very differently and the nature of being young puts
them into that category. This is especially the case for
iGEN consumers about to leave or that have recently
left university, feeling the weight of debt and the
pressure to earn. Some have been offered overdrafts,
accounts and credit cards that have put them in
financial trouble, and led them to feel out of their
depth after leaving the bubble of university. These
young people feel they are fighting a losing battle
when student loan repayments don’t even touch their
monthly interest, and their once huge interest-free
overdrafts are shrinking by the day.
Even those without huge student debts but that have
small or irregular salaries and minimal savings feel
marginalised. Many iGEN consumers spoke of being
charged account fees because their regular payments
into their current accounts weren’t high enough. And
with more young people making their money in less
traditional ways, starting their own businesses and
freelancing, this pattern is not set to stabilise.
For those young people who see themselves as
vulnerable consumers, especially those that feel
targeted by banks who see them as unstable and
financially profitable, clear and transparent face to face
contact is even more important. They want a real
person they can trust to ask questions and give them
straight answers, and who they don’t think is trying to
set them up to fail.
I FEEL LIKE YOU’RE OUT TO GET ME 03
“I think student banks are pretty
unfair as well, they’re sort of
designed to get students
spending in their overdraft, and
then you have to pay ridiculous
interest on it.”
Michael
“People feel ripped off because
even though the T&Cs are there,
they don’t feel like it’s properly
explained.”
Victoria

PAIN POINTS
MAJOR PAIN POINT 4: BANKS LOOK DOWN ON YOUNG PEOPLE
Younger people are well aware of the controversies
surrounding modern banking and traditional financial
institutions. While participants noted that this sort of
corruption does not affect them on a day to day basis,
the underlying feeling of distrust continues to affect
the relationship they have with their bank. Throughout
this study we have highlighted a general lack of trust
amongst iGEN toward banks and financial institutions
(in fact, institutions in general). By now this is probably
not a shocking insight to read. But what is interesting is
that this sense of distrust swings both ways. Not only
do iGEN not trust banks, but they feel that banks do
not trust them.
Many participants in our study felt untrusted and
manipulated by banks. They say they are looked down
on because they are younger and have less money.
They are discriminated, or exploited because they are
not trusted to take care of their money. They felt
unwelcome in this adult world and undervalued as
customers.
When in fact, the iGEN are crying out for banks to take
them seriously and provide them with the tools they
need to manage their money responsibly. They believe
that if banks behave fairly towards them they
themselves have a responsibility to become
accountable for their finances. There is an
overwhelming desire to save money and be
responsible with their spending, even if they think the
big ticket items (a house, a car) are out of reach or
irrelevant.
But iGEN consumers recall touchpoints with their
banks when they have been treated with distain by
customer service agents, overlooked, generalised or
patronised simply because of their age or their current
bank balance. They really don’t want to live up to the
stereotype they feel is placed on young people but
want more support from their banks to help them to
do so. As we can see from our stats, a strong
proportion of iGEN consumers in the UK are actively
contributing to and seeking out savings and
investments.
YOU DON’T TRUST ME, DO YOU? 04
"Since you don't trust me as your
customer, I don't trust your bank."
Angus
“I think they have certain credit
cards that are marketed towards
young people because usually
young people are less financially
stable, so they think they’ll make
more money off of them. It’s
kind of exploitative in a way.”
Daniel

PAIN POINTS
MAJOR PAIN POINT 5: CONSUMERS NEED MORE FROM MOBILE BANKING
The importance of technology to the digitally-savvy
iGEN audience cannot be underestimated. To these
young people, effective and convenient technology
solutions make or break a bank, frequently
representing the most important factor when
choosing a new bank or product. If a bank doesn’t
keep up with the platforms and solutions that this
audience expect, they will be seen as behind the curve
in all regards.
Seamless mobile banking that offers the same
functionality (and more!) as online banking i.e. via a
desktop is where iGEN consumers want their banks to
focus efforts. They would happily use mobile banking
only over desktop/online and certainly telephone
banking if the apps allowed them to do more than
check their balance and transfer money between their
own accounts.
Compared to what they can achieve through their
mobile phones in their interactions with brands in
other sectors, banking apps are way behind the curve.
The limitations are major frustrations and are
important enough to iGEN consumers to switch banks.
Where mobile apps aren't up to scratch, and this is
often the case with major traditional banks, iGEN
consumers are looking elsewhere. Many talked about
switching to online-only banks that invest their money
in improving their technology rather than spending it
on bricks and mortar.
Whilst mobile banking apps are the top priority for
iGEN, they also want their banks to keep up with
technological developments in payments and money
management. Some study participants told us they
switched banks because they didn’t support Android
Pay, or wouldn’t allow them to have a contactless card.
Having below-average technology for something as
important as their everyday banking is a real issue for
iGEN consumers who are used to being able to do
everything from their mobile phones. Sophisticated
mobile apps are not only nice-to-haves, but must-
haves.
YOUR TECHNOLOGY IS SO LIMITED 05
“When switching bank I would
seriously reconsider the bank if it
didn't have mobile banking.”
Mark
“Banking apps have been the
same since they were launched,
all you can do is check your
balance and generate security
codes. Let's change that.”
Elliot
“I am not content to stay with a
bank that is behind the
technology curve.”
Ryan

PAIN POINTS
THE TREND TOWARDS MOBILE BANKING
58 58
16
65
62
21
72
45
20
73
26
16
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
% audience using each device for internet banking
iGEN’S USE OF MOBILE BANKING IS ON A PAR WITH
PC/LAPTOP BANKING
In Q3 2016, 58% of the UK iGEN online population
used their mobile phone for internet banking. This is
exactly the same as PC/Laptop use and if we look at
the trends over the past year is forecast to fall into
second place to mobile banking by next quarter.
Currently, iGEN are the least likely generation to use
the PC/Laptop for online banking, despite being more
likely than Gen X or Boomers to use their mobile
phones.
0
10
20
30
40
50
60
70
80
Q4 2015 Q1 2016 Q2 2016 Q3 2016
% iGEN using each device for internet banking over time

PAIN POINTS
CURRENT MOBILE APPS ARE TOO LIMITED
LESS THAN HALF OF iGEN MOBILE BANKERS USE
THEIR BANK’S APPS
iGEN consumers are just as likely as older generations
to do their banking online. 80% of the iGEN regularly
use internet banking across any/some device in 2016;
approximately the same as the UK average. However
the nature of this usage varies and paints a poor
picture of the capabilities of the mobile banking apps
available today. 58% of iGEN use their mobile phone
for banking, but only 23% regularly use a banking app
to do this. With less than half of iGEN mobile bankers
using their bank’s app, opting to use their mobile
browser instead, coupled with the qualitative trends
this study has uncovered about the iGEN’s frustrations
with the limitations of mobile banking apps, there is a
lot to be done to bring the functionality and
experience of mobile app banking up to the level of
online/desktop banking.
IGEN GET SUPERIOR APP EXPERIENCES ELSEWHERE
The relatively low usage of specific banking apps does
not mean the iGEN doesn’t use apps. This mobile-first
audience are huge users of mobile apps for their news,
social media, gaming, utility and entertainment. They
have developed high expectations through their use
of leading apps and demand a higher quality and user
experience than most bank apps currently oﬀer them.
The good news for banks? More iGENs used a banking
app than Tinder in Q3 2016. The bad news? iGENs used
Pokemon Go much more than banking apps.
80
58
23
84
62
27
81
45
26
77
26
19
0
10
20
30
40
50
60
70
80
90
Any device Mobile phone/smartphone Specific banking app
% audience using internet banking via each online touchpoint
0% 10% 20% 30% 40% 50% 60% 70% 80%
YouTube
Facebook
WhatsApp
Snapchat
Pokemon GO
Any banking app
Tinder
% iGEN using each mobile/tablet app

PAIN POINTS
MAJOR PAIN POINT 6: BANKS MAKE IT HARD TO DO BUSINESS WITH THEM
Seemingly simple tasks really frustrate iGEN
consumers when they turn out not to be simple for
them at all. iGEN participants expressed frustration
with the outdated processes some traditional banks
have in place for closing or opening accounts,
problem solving and fraud protection. Study
participants talked about the friction and long waiting
times to solve problems that in their minds should be
fast and easy to fix, blaming old-fashioned systems
and clunky practises that aren’t suited to modern
banking.
This consumer group that values instant gratification
simply cant understand why certain tasks are so
difficult. A common pain point is waiting for
transactions to clear, and therefore never being able to
be certain that their balance is actually what they think
it is. Study participants pointed to many occasions
when they had been caught out by this and ended up
paying overdraft fees because they hadn’t allocated
for transactions to clear. They don’t see why they need
to wait. Similarly, another common complaint is
waiting too long for replacement cards to arrive after
being lost, stolen or swallowed by the ATM. Changing
personal details like address and contact number is
equally frustrating to these consumers that are used to
this being a very simple process in their dealings with
other companies.
Banks that achieved simplicity and efficiency without
taking too much time from our participants were
praised and appreciated for it. When talking about
their ideal bank, simplicity was an often cited quality.
iGEN customers would rather not have to speak to
anyone and not have to fix anything; they just want
their bank to work seamlessly for them. But when they
do have to speak to their bank to sort out a problem,
they really hate having to phone up. They would
always rather use online chat or go into the branch to
speak face to face than have to phone their bank for
support. The phone is really seen as a last resort, for
emergency situations.
iGEN consumers look forward to a time when security
measures are vastly improved and they don’t have to
wait or jump through hoops to action simple tasks.
I HAVE TO JUMP THROUGH SO MANY HOOPS 06
“Can’t stand HSBC. They never
made anything easy…asked
them to close my account four
years ago and it still hasn’t
happened.”
Laura P, 25
“I tried to get a savings account
and my own bank gave me three
separate accounts and I have no
idea how they’re different. I just
want a singular account.”
Victoria T, 24

PAIN POINTS
WHY WOULD iGEN SWITCH BANKS?
CUSTOMER SERVICE IS A DEAL BREAKER, BUT NOT
NECESSARILY A DEAL MAKER FOR THE iGEN
Important to note here is that whilst 47% of our iGEN
Hark panellists gave poor customer service as a key
reason for wanting to switch banks, it featured low on
criteria they look for in a new bank. iGEN consumers
can point to many examples where they have received
poor customer service and in many cases this has
caused them to switch, but customer service is much
less of a draw for consumers looking for a new bank. In
fact, they hope they don’t need customer service and
instead choose a bank they think will run much more
smoothly and meet their needs better.
The iGEN appreciated those banks hot on fraud
protection, particularly ‘suspicious behaviour’ text
alerts, however a number of participants cited bad
experiences with sudden, unnecessary account shut
downs and over-zealous protection measures as their
main reason for switching banks. As previously
discussed, a lack of ROI, low interest rates and reduced
incentives for long-term customers ranked high on the
list of reasons participants put forward. Perhaps as a
result of this need to constantly switch between banks
and manage multiple accounts in order to benefit
from new member incentives, slow or ineﬃcient
digital tools and apps came fourth as the most
common reason for leaving a branch behind. The iGEN
is a generation of digital natives, yet a number of
participants still cited ‘no local branch’ as their number
one reason for switching. This confirms a sentiment
already expressed by iGEN participants, young people
are comfortable online and expect technological
innovation, but face to face contact is preferable when
it comes to ‘big money moments’; like taking out a
loan or considering a mortgage.
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Customer service
Better incentives elsewhere
Interest rates
Digital tools
Charges and fees
Other
No local branch
Travel problems
iGEN’s main reasons for wanting to switch banks
Hark activity 2
switch.

PAIN POINTS
Dear Bank Manager,
I would like to close my current account with you as I find
your mobile banking app slow and tedious to use. It has
limited functions and takes way too long to load. As
someone who is frequently on the move and needs access
to online banking via my mobile, this simply isn't good
enough for my needs.
I will be switching to another bank as their mobile app
has many more features and works flawlessly.
Yours sincerely,
Ash
Hark activity 2
switch.

05.
BANK OF THE
FUTURE
Why banks need to make big changes fast

Bank to the Future

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