Financial institutions should use internet-based technology to attract more tech-savvy generation Y customers, says Telstra Corp.
Telstra issued a report on Monday that encouraged financial institutions to increase the number of media through which they could interact with the Gen Y age group.
This age group – nominally those born after 1978 – now comprise about 25 per cent of all financial sector customers.
The use of video calling was highlighted in the report as a technology already being used to good effect by some banks, including Spanish bank Bankinter.
The Telstra White Paper author Rocky Scopelliti said financial institutions were the focus of the report but other industries could also benefit.
According to the Australian Bureau of Statistics, Gen Y will make up 42 per cent of Australia’s workforce by 2020.
They already represent 25 per cent of the financial sector’s customer base, the report said.
Social researcher Hugh Mackay, a contributor to the paper, said Gen Y preferred to keep its options open in order to take advantage of rapid change.
Mr Scopelliti said this characteristic made Gen Y a crucial market for the delivery of customer service.
“An unresolved problem to a Gen Y could easily result in that Gen Y stepping out of that (bank) branch, crossing the road and stepping into another,” Mr Scopelliti told journalists on Monday.
He said the introduction of video calling in late 2007 by Bankinter enabled its agents to achieve greater sales outcomes.
“More importantly, the customer satisfaction surveys are indicating that customers are more satisfied with the video channel.”
Telstra will now present its paper to its financial sector clients.