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Millennials’ fixation isn’t just about selfies By John Ginovsky, contributing editor


key to capturing millennial attention—and business—stares in the face any banker holding a smartphone: the camera. A large percentage of millennials—particularly older ones between the ages of 29 and 34—say the camera is the one smartphone function they can’t live without. Mitek’s third annual report on millennials looks at their behavior regarding image capture, particularly with mobile devices. With Osterman Research, it surveyed 3,000 millennials in the United States, Canada, and the United Kingdom. For the first time, Mitek’s study differentiates younger millennials (18-22); midrange millennials (23-28); and older millennials (29-34). “What really surprised us is the older millennials are quite a lot more active with their cameras on their smartphones than the younger millennials,” says Kalle Marsal, Mitek’s chief marketing officer. The study found it is not uncommon for millennials to take 20 or more selfies a day. Another key takeaway: “There is a huge unmet demand for use of the mobile camera in commerce and different services,” Marsal says. Only 5% of survey respondents said they had used selfies to authorize purchases, but almost 50% said they would like to. Less than 10%

had used selfies to verify identity, but more than 40% said they would prefer that. Less than 10% said they had used a photo of themselves to enroll or open an account, but about 40% said they would. The third main takeaway: Mobile ex per ience mat ters. “Nearly ha lf of the older millennials told us that they switched or selected a service based on the mobile experience,” says Marsal. Banks should consider these factors: • Use clear terminology. Users must understand what banking app buttons do, if there are limits, and how to get help.

• Match user expectations. Consistency must be built in from channel to channel. • Provide feedback. “Technolog y is advanced enough that you can recognize that there’s an error about to be made, or that there is confusion on the part of the customer, and then proactively provide useful directions,” says Marsal. It comes down to four key steps, sums up Marsal: “Eliminate confusion, enable it to be seamless, ensure success, and speed the customer through the process.” Read a longer version of this story at

Millennials’ desire for engaging with banks, retailers, and other businesses from their mobile devices A good mobile experience is mandatory for any organization that wants to connect with me




I might not change where I do business right away, but if an organization falls too far behind their competitors with their mobile user experience, I will start looking for other places to do business The mobile experience doesn’t matter at all to me Source: Osterman Research, Inc.

TBTF DEBATE WILL CONTINUE Minneapolis Fed’s plan will keep issue alive post-election By Nathan Stovall, staff writer, S&P Global Market Intelligence


hile many bank observers herald the prospect of deregulation following the 2016 election, Minneapolis Federal Reserve President Neel Kashkari’s plan to end “too big to fail” should keep pressure on the nation’s largest banks. His new proposal requires banks with more than $250 billion in assets to build common equity to 23.5% of risk-weighted assets—nearly double current levels—over a five-year period. If enacted, Kashkari

could push away investors and prompt the break up of the nation’s biggest banks. He has said big banks should not exist in their current form, suggesting they should be split up or turned into utilities, and that they need to hold more capital. Kashkari, who oversaw the Troubled Assets Relief Program during the financial crisis, believes this plan is the only way to avoid repeating the past. He estimates the 13 impacted banks would have to raise $807 billion more in capital to comply.

The plan’s cost would be considerable and reduce economic activity due to credit restriction. Kashkari accounts for this, estimating that the plan would result in a 24% hit to GDP at the base case and up to 41% of GDP if the highest level of proposed capital standards were imposed. He notes the cost of a typical banking crisis equates to 158% of GDP. The plan seems unlikely to be enacted, but will impact the regulation debate. Read more:

December 2016/January 2017



December 2016 January 2017 Banking Exchange