Yes, there are risks to working with people with thin (or no) credit histories. Enter alternative data.
When it comes to banking relationships and attitudes towards money, Millennials resemble previous generations more than you might think.
Financial institutions that wish to attract millennials for wealth management services need to start with their own millennial employees, utilize robo-advisors, prioritize mobile and offer video collaboration.
As the Millennial generation increases its economic clout, banks need to adapt strategies that enable them to profitably attract, serve and grow with these new customers.
In an omnichannel environment, banks need to move from strategies that 'pull' customers through points of interaction to those that actually anticipate and then meet customer needs.
Banks and credit unions can meet the needs of the underbanked and achieve significant community impact by offering short-term loans to this population.
To be successful at capturing varied customer groups, banks need detailed information about segment preferences and then must apply this data to product design and pricing.
By focusing on a subset of critical customer interactions, banks can boost revenues, improve efficiency and greatly improve the customer experience.