Catch them young!

Banks seem to be finally waking up to the potential which the youth of India represents. Many are still studying, with no money in their pockets but that does not mean that they will remain the same for the rest of their lives. They will soon start earning and that is the curve which the banks are hoping to cash in on instead of trying to get in when they have already started off. Building this loyalty early on is what banks will believe help create loyal, young and high earning customers.

Indian Overseas Bank is going aggressive on this path. It has issued an internal memo, stating that the bank wants to bring down the average age group of its retail customers in the future. It is targeting young customers and this would be the age group of 10 to 28 years. Investing in the future, the bank officials have been going to colleges and offering students zero balance accounts and free debit cards.

The The Institute for Development and Research in Banking Technology has recommended young customers to be the focus area. It has stated that around 20 million students study in colleges and if this trend continues over the next five years, banks will have 100 million potential customers.