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Financial institutions & Gen X, Y, Millenials & minorities 6/3 Businesswire Inevitable demographic shifts unfold in the US, financial service institutions must become equipped to identify & target their next generation of customers. TowerGroup finds that this ability will become a market mandate for financial services institutions in order to drive growth in the years to come – even as they navigate their way out of today’s crisis. TowerGroup notes that institutions are compelled to invest in & embrace sophisticated data analytics tools to segment the domestic market population more cleverly than before, developing customized product offerings based on the needs of a highly-varied set of audiences. The coming wave of baby boomer retirees continues to make headlines. Yet many financial institutions have yet to forge effective strategies for targeting younger customers in Gens X, Y & Millennials who will replace baby boomer business. At the same time, the opportunity to serve the financial needs of US-based Hispanic, Asian, & other immigrant or minority groups is growing fast. TowerGroup issues a call to action for financial institutions to seize the organic growth opportunities presented by underserved segments of the US population represented by younger, ethnic, & immigrant demographics. While these unbanked or underserved populations may not have been considered or targeted in the past, financial institutions must now dig deeper to understand the drivers motivating the financial decisions of these prospects – from how they behave, shop & travel to how they use technology as part of their daily lives. A marketing effort targeting previously unaddressed demographic segments must incorporate the following: Gen X (born 1965 to 1977) & Y/Millennials (born 1978 to 2004): While millennials are not as wealthy as the boomers & generate lower investment fees, they offer institutions the opportunity to leverage economies of scale, lower onboarding costs & increased use of self-service channels. Minority & immigrant populations in the US: Hispanics are the largest US minority group & represent a critical & growing customer base for financial institutions, while households identifying themselves as Asian outpace the US average in income level & home value. Asian American households report a 30% higher median income than the US Total. Their homes are valued at over twice as much as the total US median home values. These are just 2 examples of myriad opportunities to serve minority & immigrant populations. The role of integrated mobile devices, the Internet, & technology: Any decision to capture the attention of younger demographics, especially Millennials, must involve mobile communications services & social networking environments. Remittances to emerging economies: The World Bank estimates that migrant workers sent $240b home to developing countries such as Mexico, India & Philippines in 2007. Financial institutions have the opportunity to tap into the revenue stream represented by this remittance business & alternative payment channels. Dramatic shifts in the demographic landscape are reshaping the current & future customer base for banks & other financial services institutions – raising questions regarding which institutions are best positioned to serve new sets of customer expectations & needs.