Monetization of Generation Y: Developing a strategy for monetizing financial services of Generation Y
Generation Y is a generation that already has potential and will even have more in the future. But what are the needs of this generation? What is their financial attitude and how can Generation Y be monetized regarding financial services? This bachelor thesis will give answers to these questions.
Plinke Gabriel & Puvananayagam Rageepa, 2020
Bachelor Thesis, VZ Group
Betreuende Dozierende: Jacqueline Haverals
Keywords: Generation Y, Millennials, financial services, monetization
So far, the client's (a financial service group based in Switzerland) target group are people over 55 years of age. However, they are aware of Generation Y's potential for financial services. Therefore, they want to know how to best monetize said generation. Furthermore, their existing services should be analysed in terms of compatibility. Lastly, a strategy shall be developed to monetize Generation Y with the existing services of said financial service group or the development of a new product.
With the help of secondary literature, the typical characteristics and needs of Generation Y are examined. Furthermore, a primary literature analysis as well as an interview will be conducted to describe the client's financial services and those of its competitors. The collected data is then analysed with a PESTEL analysis regarding the environment of the client for Generation Y. In addition, the client's financial services are analysed using the MoSCoW method to determine their compatibility with Generation Y. Finally, recommendations are made.
The authors' analysis suggests that the client's philosophy, which is based on independence, transparency and comprehensiveness, perfectly meets the needs of Generation Y. When it comes to financial services, the client has a solid basis with services such as insurance policy management, the third Pillar pension plan and the ETF investment solution. Furthermore, their philosophy of a "one-shop-stop" solution meets the need for convenience. Nevertheless, most of the services offered are aimed at older and wealthier clients. It is therefore recommended that a "basic" banking package with better conditions be developed that meets the needs of Generation Y. In addition, an insurance product range for younger clients can be used as a starting point for establishing a long-term relationship. Finally, the client's digital offering needs to be improved, for example by developing an app aimed exclusively at Generation Y clients and that offers additional functions such as the possibility to conclude contracts and an online advisory service. In conclusion, the client's basis is good, but needs to be improved in terms of compatibility with Generation Y and digitalization.
Studiengang: Business Administration International Management (Bachelor)
Fachbereich der Arbeit: Accounting, Banking, Controlling and Finance