Banking Preferences Research

Millennials' Banking
Preferences

COMPANY

People First Bank

ROLE

UX Researcher

YEAR

2024

Timeline

From explorations to final designs in 7 weeks

People First Bank

People First Bank, formed through a merger of Heritage Bank and People’s Choice, is transitioning into a digital-first institution. As part of its strategic focus on younger demographics, the bank sought to understand Millennials' banking preferences and challenges. With a mission to align its services with the values of mutual banking—community-driven, customer-owned—People First Bank aimed to attract and retain Millennials by offering personalized experiences and better digital services. The bank also hoped to increase awareness of its ESG (Environmental, Social, and Governance) initiatives to appeal to socially conscious consumers.

Objectives

The primary goal of this project was to gather insights that would help People First Bank better connect with Millennials, aged 28-43, from Victoria and New South Wales. The research aimed to answer key questions, including:

Understanding Preferences:

  • What are the key factors influencing Millennials' choice of banking institution, and how can People First Bank appeal to these preferences?

Mobile Banking Features:

  • Which app features and services are essential for enhancing user satisfaction and fostering loyalty among Millennials?

ESG and Mutual Banks:

  • What level of awareness do Millennials have about mutual banks and ESG values, and how can People First Bank educate them on these topics?

Improving Customer Service:

  • What are Millennials' expectations regarding customer service, and how can People First Bank meet or exceed them through technology and accessibility

  • How can People First Bank’s digital presence and product offerings be optimized to attract and convert Millennials into loyal customers?



Research Process


Research Process


Research Process


Research Summary


Research Summary


Research Summary


We adopted a user-centered approach, utilizing both qualitative and quantitative methods to gather insights. The research involved five in-depth user interviews, three surveys, and stakeholder discussions, yielding over 100 survey responses and detailed interview findings. The study focused on understanding Millennials’ interactions with banks and their preferences for financial products and services.

Research Methods

Stakeholder Interviews: Held with Sean Clancy( Head of Marketing Platforms & Builds Heritage Bank & People’s Choice Ltd ) and Nate Hornery (Digital UX and Engagement Designer Heritage Bank ) from Heritage and People’s Choice to understand their vision for People First Bank's digital transformation.

Surveys: We created three surveys distributed across networks, focusing on ESG values, current banking habits, and customer service experiences.


User Interviews: Five interviews were conducted with Millennials (ages 25-47) to gather detailed insights into their preferences and motivations.


Guerrilla Interviews: Conducted to explore the reasons for visiting a branch and motivations for choosing a mutual bank.


Secondary Research: Focused on understanding the behaviors and motivations of Millennials overall.


Competitor Analysis: Aimed at gaining insights into the most popular mobile app features

Key Insights

Key Insights

Unfamiliarity with Mutual Banks: Most Millennials lack understanding of mutual banks and their benefits, reducing their likelihood to choose them.

ESG Awareness is Low: While Environmental, Social, and Governance (ESG) values are acknowledged, they aren't a primary consideration for most Millennials when choosing a bank, It seems it is more an expectation than a motivator.

Mobile Banking Features: Millennials highly value budgeting tools and real-time expense tracking through visual dashboards, with 76% expecting comprehensive mobile banking functionalities.

Security Prioritization: Due to personal experiences with security breaches, secure banking channels are critical. Millennials prefer secure options that minimize repetitive inputs.

Customer Service Expectations: Poor customer service, such as unresponsiveness, leads to dissatisfaction. 24/7 support via chat, phone, or in-person channels is crucial.

Comprehensive App Features: Millennials seek banking apps that offer all-in-one financial management, aiming to streamline tasks and save time.

Key Insights

Unfamiliarity with Mutual Banks: Most Millennials lack understanding of mutual banks and their benefits, reducing their likelihood to choose them.

ESG Awareness is Low: While Environmental, Social, and Governance (ESG) values are acknowledged, they aren't a primary consideration for most Millennials when choosing a bank, It seems it is more an expectation than a motivator.

Mobile Banking Features: Millennials highly value budgeting tools and real-time expense tracking through visual dashboards, with 76% expecting comprehensive mobile banking functionalities.

Security Prioritization: Due to personal experiences with security breaches, secure banking channels are critical. Millennials prefer secure options that minimize repetitive inputs.

Customer Service Expectations: Poor customer service, such as unresponsiveness, leads to dissatisfaction. 24/7 support via chat, phone, or in-person channels is crucial.

Comprehensive App Features: Millennials seek banking apps that offer all-in-one financial management, aiming to streamline tasks and save time.

Challenges and Opportunities for People First Bank

Recommendations & Future actions


  1. Educate on Mutual Banks: Provide clear, engaging content explaining how mutual banks work and their advantages.

  2. Enhance ESG Communication: Raise awareness of ESG values through transparent, easy-to-understand messaging.

  3. Prioritize Security: Offer features like virtual cards that expire after one use and ensure secure channels for transactions.

  4. Budgeting Tools: Integrate advanced budgeting and financial tracking tools into the mobile app to align with Millennials’ needs.

  5. Improve Customer Service: Implement 24/7 support via AI-powered chatbots to address inquiries efficiently.