SOURCE: Oracle Corporation

Oracle Corporation

Oracle Corporation

September 29, 2010 08:00 ET

Oracle and Efma Announce the Results of Next Generation ('Gen Y') Customer Survey

Banks Are in Early Stages of Realigning Operations and Marketing to Serve Generation Y; New Research by Oracle Financial Services and the European Financial Marketing Association (Efma) Looks at Banks' Preparedness to Serve and Succeed with Gen-Y Customers

LONDON--(Marketwire - September 29, 2010) -  Oracle (NASDAQ: ORCL)

News Facts

  • Many banks are still in the early stages of launching dedicated strategies to serve Generation Y (Gen-Y), a demographic group that is estimated to constitute the majority of wealth accumulators in developed nations over the next decade, according to a new study by Oracle Financial Services and the European Financial Marketing Association.
  • "Are Banks Ready for the Next-Generation Customer?" presents findings about Gen-Y preparedness from interviews with more than 100 key executives at the largest banks in Europe, the Middle East and Africa (EMEA).
  • Despite the growing economic importance of Gen-Y, 31 percent of respondents say they do not have an active, dedicated strategy for marketing to and serving this demographic segment. 31 percent say they have a dedicated strategy and 38 percent of respondents, however, say their organizations are working on a strategy -- signalling growing recognition of the unique requirements and needs of Gen-Y.
  • Banks without a dedicated Gen-Y engagement strategy appear to be less focused than their peers with active Gen-Y initiatives on three critical parameters for successful engagement with this demographic segment: utilization of social media as a marketing and communications channel; responsive and flexible customer service; and speed in launching new products.
    • Only 31 percent of respondents have a social media strategy in place, a key channel for interacting with Gen-Y -- whose members spend a significant amount of time on line and engaged with social media. By comparison, more than 40 percent of banks with an established Gen-Y focus use social media to communicate and market, and another 26 percent plan to move forward with launching a strategy in the next six months.
    • Only 8 percent of respondents say they deliver "Exceptional" service, a key factor in sustaining customer loyalty, while 54 percent say they provide "Good" service. Of the banks focused on Gen-Y, 15 percent call their service "Exceptional" and nearly 60 percent say that their service level is "Good."
    • While personalized and configurable products resonate with Gen-Y, only 4 percent of overall respondents say they can launch a product in one week. This compares with 11 percent of Gen-Y focused banks. This group is also more likely to offer products tailored to Gen-Y, including prepaid debit cards, and partnerships with retail chains. Both groups are nearly comparable in their ability to launch products in the one-week to one-month range.
  • Compared to their peers, banks with Gen-Y strategies are more likely to invest in modernizing their retail banking platform, a fundamental requirement for providing more agile service and product offerings. Banks without a Gen-Y strategy were more likely to be focused on maintaining and upgrading current applications and platforms.

Supporting Quotes

  • Patrick Desmarés, Secretary General, Efma said, "Members of Gen-Y, who are truly at home in the digital world, bring an entirely new set of expectations to their business relationships -- including their financial relationships. To capture this important market sector, banks are recognizing that they will need to embrace new communication and marketing strategies and tools that resonate with Gen-Y customers. Banks that move quickly stand to gain the trust and loyalty, from this vital customer segment, which is why partnering on studies such of this is an important part of Efma's role in the European banking community."
  • "Personalized and flexible products and services and communication will be the bellwethers for success with Gen-Y," said NRK Raman, Managing Director and CEO, Oracle Financial Services. "To support this heightened need for agility -- whether in service delivery, product development or communication -- financial services organizations must adapt, and in some cases transform, their go-to-market strategies. IT is an essential element for success, with a modern and open infrastructure providing a foundation that enables the flexibility and agility required to compete profitably in the Gen-Y era." 

Supporting Resources

About Efma
The European Financial Marketing Association has been an unfailing observer of the numerous transformations that the retail financial services sector has experienced over the years and has demonstrated its ongoing commitment to providing a forum for professionals from the sector. Formed in 1971 by bankers and insurers to encourage their colleagues to share experiences, promote the best practices of their institution and collaborate through alliances and partnerships, today the non-profit association's members include over 80 per cent of Europe's largest retail financial institutions.

Through regular events, publications, and its comprehensive website, the association provides retail financial service professionals with answers to their questions about the main issues at stake in their business: multi-distribution strategies, customer approaches, product and service marketing, risk management or operational excellence, to name but a few.

Efma is above all a dynamic association, providing a great opportunity for discussion and exchanges without any commercial constraints. For the past 40 years, the loyalty of its members as well as their permanent financial support is the best proof of its efficiency.

About Oracle
Oracle is the world's most complete, open, and integrated business software and hardware systems company. For more information about Oracle, please visit our Web site at http://www.oracle.com.

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Contact Information

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