Community and local banks are winning with one very important age group: millennials. Over the past year, community banks saw a 5% increase among millennials while national banks lost 16% of them over the same period. Bloomberg cites lower fees on banking services and the popularity of Internet banking as reasons for the shift.
High turnover in the age group is to be expected, as people leave college, age out of student accounts, move for job opportunities and start families. Millennials, now numbering 83.1 million people, have surpassed baby boomers as the largest portion of the population, according to the U.S. Census Bureau. By 2017, they’ll attain more spending power than any other generation. The banks that win the loyalty of the millennials now could keep it, Hicks said. “If you have good customer service, the customer will stay with you. ”