X
Revitalizing the
GenZ Banking Experience
CIBC becomes the third pillar in adolescent financial literacy, joining parents and schools in this noble exercise; cultivating more attractive and loyal customers, banks are no longer looked at as ‘vaults’, but are instead exciting companions as GenZ takes on the world.
As GenZ becomes financially independent sooner, CIBC becomes their exciting companion as they explore the world. A net decrease in CAC, as well as a shift towards younger people engaging with more financial services than just having savings account. CIBC also pivots from being just another monolithic, distant, financial services company, to being a key player in the education, fintech, and social-work space.
OPPORTUNITY
SOLUTION
OUTCOME
The average Canadian student scored 62% in a 2014 federal financial literacy survey. 33% of parents are uncertain they can set a positive example in that regard. A gap in the market presents an opportunity for earlier customer interception and engagement.
In 2021, the Canadian government announced a 5 year financial literacy plan aimed to public schools and educational institutions. This provides a unique opportunity for the banking and financial services industry to engage young people through strategic partnerships. All the important financial milestones have shifted ~2 years earlier in the average Canadian’s life, and CIBC can maximize engagement by adapting to this change.
EXCITE. ENGAGE. RETAIN.
Start at age 10. Create an ecosystem with schools and community organizations to generate excitement about finance early, with student programs and digital interfaces evolving to cater to the needs of a growing market.
Make it easy to start and stay with CIBC through personalisation and simplification. Our 3 step approach identifies key inflection points in the journey of a GenZ banker starting at age 10 all the way through adulthood. With a focus on personalization, simplification, and ease of use, each step prepares a generation of customers to be best equipped to take advantage of the benefits of the next, creating a chronological system of programs.
The Status Quo
Banks aren’t innovating relative to the desires of consumers, and are struggling to acquire and retain young customers at key points in their development.
As the needs of consumers continue to develop, businesses are expected to adapt and provide up-to-date services with the highest degree of quality. Unfortunately, the banking industry has continuously fallen quite short, and has struggled to successfully integrate innovation into its business model. On average, parents report that their kids are reaching major financial milestones earlier: 9 is the average age kids receive an allowance, while parents did so at age 11, 10 is the average age kids open up bank account, while parents did so at age 12 etc. Yet, parents say their kids achieve financial independence at age 20, one year later than they did at age 19. This means formative years in the development of loyal customer-bank relationships are lost due to lax attitudes around financial literacy.
Most consumers currently perceive their banks as nothing more than vaults, as their relationship ends after the traditional lending, investing, and holding. As such, neobanks and similar institutions are gaining influence within the financial space with a high degree of innovation. If conventional banks cannot learn to attract and retain customers in new and creative ways, they will fall behind and lose interest from up-and-coming target markets.
Only 9%
of banking organizations are ranked as “innovation pioneers.”
84%
of customers say it is very important that companies they engage with are innovative.
22.5%
is the current projected annual growth rate for the average neobank
15-18
19-25
The Financial Journey of a GenZ Customer
Opening First Bank Accounts
Today, the average Canadian opens a bank account almost 2 years early than they did in the 1990s. This is reflective typically of a parental concern about the future of family economics.
Enrollment in Tertiary Student Programs
As students leave high school and matriculate at various undergraduate institutions across the world, they enroll in student programs, a unique opportunity to engage young people with great incentives.
First Investments
The average age of a first investment has come down almost 4 years from what it was in the 1990s. Parents and children alike understand what a difference starting early makes, and this is reflected in this trend.
Introduction to Financial Literacy Curriculum
This age is also characterised by when students first start learning about finances and money in Canada. These lessons start off being about creating saving plans and working towards them, and evolve as the students grow.
Engagement w/ Real-World Money
A key component of the highschool experience for many is learning how to work with their own money, budget, spend responsibly, and even invest. This is seen in retail trends, money on school campuses, and in conversations at home.
10-14
Developing Long-Term Plans
As clients graduate from university and/or get their first stables jobs, long term money plans are a high priority. This takes the shape of positions in mutual funds, developing relationships with financial managers, etc.
2. ENGAGE
3. RETAIN
How That’s Reflected in Our Solution
Age 10-14
Goal: Get adolescents excited about money, demystifying important concepts about economics. Engage with families and communities, making CIBC the obvious, and easiest choice for a first bank account.
Age 15-18
Goal: Engage with students in a more direct fashion, creating on-campus experiences that train the next level of investors, bankers, and customers. Build on strategic partnerships to use virality and hype as organic outreach measures.
Age 19-25
Goal: Continue to cultivate brand loyalty and trust by offering the simplest, most personalizable, virtual banking experience which goes beyond investments and savings. Adopting a data-based to treat each customer uniquely.
We EXCITE so that we can ENGAGE, and we ENGAGE to create customers we want to RETAIN.
Madhav, a young Canadian student, is growing up in a world that is increasingly focused on financial literacy and planning for the future. A child of first-generation immigrants from India, he has seen his parents struggle with money his whole life. However, Madhav's school is not doing anything to help him prepare for the world that lies ahead. His parents are concerned he is missing out on important opportunities to learn about managing money, saving for the future, and making smart financial decisions.
Meet Madhav: Age 10
The average Canadian, like Madhav, opens their first bank account at the age of 10. By partnering with primary schools to offer interactive financial literacy workshops and curriculum aids, CIBC can educate students on the importance of money management. When Madhav gets home from school, he will tell his parents about the lessons he learned at CIBC Seminars, encouraging his family to start thinking about opening a bank account for him—one with CIBC.
42%
Parents aren’t having conversations about money with their children at all
2M+
Students between the ages of 10-14
Workshops for Students and Families
The data is clear: students and their parents care more about the future of their financial state than ever before, and accessible financial literacy is hard to come across. CIBC Youth Outreach reps with host workshops and webinars at schools and local community centers on savings, insurance plans, college funds, credit building, and other themes of popular interest based on market assessments.
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Online Resources and Curriculum Aids
In tandem with these workshops, an online ecosystem of economics-based children's games and curriculum aids will help offset the burden of teaching these lessons from the shoulders of already overworked teachers.
Classroom Currencies
Introducing CIBC-branded classroom currencies, possible in the form of stickers is another way to stimulate banking exercises within a classroom. Students can earn and spend this currency on chores, assignments, etc.
CIBC Youth Outreach Representatives are allocated school districts where they are responsible for strengthening strategic partnerships with schools to roll out CIBC’s proprietary student programs
Liaise with local school boards & community organizations.
Forming partnerships with districts rather than individual schools can be a more effective and efficient way for CIBC to provide programs to schools. By partnering with a district, the bank can reach a larger number of schools and students and can facilitate better coordination and collaboration.
Host workshops for parents and students
By creating content at a national level and allocating it to representatives to teach, CIBC can help ensure that the educational resources and programs it offers are consistent and of high quality. Outreach reps should teach 4-6 annual workshops at each district.
Serve as the first point-of-contact for all local financial-services related inquiries
By providing personalized advice and recommendations, the representatives can help parents identify the solutions and services offered by CIBC that best fit their needs and can help them make informed financial decisions. This can include introducing parents to CIBC products and services such as savings accounts, investment options, and other financial tools that can help them manage their money more effectively.
Responsibilities of a CIBC Youth Outreach Rep.
01
02
03
04
Establish Regional Networks
By assigning dedicated employees to work with individual school districts, CIBC can ensure that the representatives working with the schools have a deep understanding of the district's unique needs and challenges, and can provide personalized advice and support to help schools provide a well-rounded financial education to their students.
Roll-out a Virtual Ecosystem
Creating videos that dive deeper into the topics covered in the financial literacy workshops is a great way for CIBC to further engage youth. These videos can be designed to be informative and entertaining, and can use a variety of tools and techniques, such as animations, graphics, and real-life examples, to help students understand complex concepts and principles related to budgeting, saving, and investing.
Periodic In-Person Engagements
Hosting Q&A sessions and workshops can provide students with an opportunity to ask questions and get personalized advice and guidance on money management, which can help them better understand the concepts and principles being taught.
Convert
Customers
By providing students with a high-quality financial education and engaging with them on a regular basis, CIBC can help to build strong relationships with young people and establish itself as a trusted and reliable source of financial advice and support. As students move on to college and beyond, these relationships can be leveraged to convert them into loyal customers who will turn to CIBC for their banking and financial needs. This can help to build a strong and stable customer base for the bank, and can provide a solid foundation for its future growth and success.
Implementation Plan
4500+
youth student accounts were made from 2015-16 with FDIC’s help.
Insights from FDIC report
In 2015, the FDIC, in partnership with commercial banks, introduced a similar initiative of starting in-school branches to familiarize students with modern banking. Results consistently proved to be very positive, and students exited high school very excited about their future financial endeavors.
Following the program’s initiation, Athol Saving Banks (one of many partners) reported that students were increasingly incentivized to continue engaging with the banks they met during this time.
76%
of pilot banks reported their initiatives resulted in new account relationships with students.
Case Study: Past Successes in the US
Madhav’s in High School Now
As he enters high school, Madhav finds it increasingly difficult to find a balance between financial freedom and stability. He is very excited about money, the prospect of investing, competing in case competitions, and much more. However, he is struggling to manage his spending and saving habits, and is unsure of how to achieve his financial goals. To make matters worse, he is finding it difficult to find the right resources to provide additional insight, and as such, has little support to help him on this journey.
2. ENGAGE (15-18)
Most Canadians have their first investment made under their name at the age of 15; this marks the beginning of increased financial mobility. CIBC can capitalize on this opportunity by further developing their partnerships with school boards to open in-house branches, and more. Initiatives as such will provide students like Madhav with additional insight on how to manage one’s assets efficiently to ensure financial stability in all phases of life.
2.1M
Students between the ages of 15-18
50%
of HS seniors believe personal finance curriculum is lacking
Concept: On-Campus Banks
Here is the concept: CIBC can open bank branches in local high schools. These school-based branches can allow students to open checking and savings accounts, make deposits and withdrawals, and receive assistance from student tellers in eleventh or twelfth grade. These students can apply and interview for their positions, and receive training from the bank to prepare them for their roles. The branches can be managed by experienced bank employees, with the student tellers serving as customer service representatives. This can provide an opportunity for students to gain valuable work experience, while also making banking services more accessible for their peers. We’ve highlight success stories of this model in upcoming slides.
64%
of DECA competitors state that the organization has influenced its college and career plans
3.5K+
different high schools participate in DECA
220K
DECA competitors
worldwide
Partnering with DECA
DECA, a high-school case competition, is designed to involve youth within the world of business early on. The organization has a variety of partnerships with many different organizations, of which CIBC can capitalize on. By using the school branch liaisons to promote any DECA-related activities, a mutualistic relationship can be developed where CIBC receives additional promotion. Initiatives as such also help promote increased financial literacy and awareness among young demographics, while encouraging them to get involved sooner than later.
CaseCIBC
Case competitions are a popular activity among young people, particularly high school students. These competitions provide an exciting and engaging way for young people to learn about business and problem-solving, and can help to develop critical thinking and teamwork skills. Some of the most successful case competitions are known for their tough challenges and high-quality judges, making them a valuable experience for those who participate.
Such a competition could provide an opportunity for CIBC to showcase its commitment to education and youth development. It could also provide CIBC with a unique opportunity to connect with young people and build brand awareness among this demographic. CIBC could gain valuable insights into the interests and concerns of this important group of consumers. It is also a platform for CIBC to share information about its products and services with a younger audience.
Introduction
Member
Partners
Infographics
Contact us
Interview and select student assistants for on-campus banks
Assigned to manage approximately five school-based bank branches. These branches will be open one day per week for activities that require the presence of the representative, such as workshops and seminars. On the other days of the week, the branches will be open for regular banking services that do not require the presence of the representative, but selected juniors and seniors will continue to man the station.
Encourage participation in DECA programs + CIBC competitions
The representative will seek to maximise the engagement with partner DECA programs by facilitating the creation and running of a DECA-related extracurricular clubs. They will also serve as the PoC for people interested in CIBC competitions, for which they will also lead local marketing efforts.
Host webinars and workshops about investing, private finance, etc.
Continuing in the style of the workshops hosted for youngers students, these webinars will seek to tackle more complicated topics that may be of interest to a teenager who now has a strong understanding of how finances work.
Responsibilities of a CIBC Teen Outreach Rep.
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02
03
04
Sign MoU with School Boards
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Create Infrastructure for Programs
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Pilot CaseCIBC
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Strengthen DECA collaboration
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Implementation Plan
Success Stories: MS JumpStart, Wharton Global Youth, Athol Savings Bank
Morgan Stanley’s JumpStart Program has done wonders in engaging the next generation of business and thought leaders through it's workshops, networking opportunities, and competitions.
Other institutions like UPenn’s Wharton School of Business also host incredibly successful investment competitions for highschool students that also provide a platform to advertise.
Many schools and banks involved in the aforementioned FIDC pilot reported great engagement with their on-premises banking operations, including an increase in account setups.
1,300
High school teams submitted proposals for Wharton’s last Global Youth Investment Competition.
75%
of FIDC pilots reported increase in account registrations for adults in addition to students during the course of the YouthSavings program.
Happy Graduation,
Madhav!
As a new graduate, Madhav is feeling quite frustrated with his bank. Throughout his time in school, Madhav had been part of CIBC’s student program, which offered a range of benefits and financial services specifically for young bankers. Now that he has graduated, he is no longer receiving the same level of support and attention. Madhav feels quite disappointed and let down, and is considering switching banks to ensure success as he enters adulthood.
-14%
trust in banks with long-term financial wellbeing between 2018 and 2020
3.5M
Canadians aged 19-25
CIBC can improve its mobile banking app by redesigning the user interface and using consumer data to provide personalized insights to customers. CIBC can also use transactional, geographical, and mobile data to generate customer profiles and provide personalized recommendations for products and services. This approach can help to build strong and lasting relationships with customers and establish CIBC as a trusted financial provider.
3. RETAIN (19+)
Understanding the Customer: Effective UI Design
of users said a bad mobile experience made them less likely to engage with a company.
25%
67%
52%
of mobile users will leave a site if they are frustrated with the navigation.
of users will only launch an app once.
Navigation Bar
Create a navigation bar at the bottom of the screen to allow the users to have easy access to the essential features of the app.
App Hub
Move the extra features of the app that not all users will use to an app hub, allowing users to add mini-apps as they want, giving them the ability to customize their experience (thus allowing for personalization).
UI Redesign
In order to build a meaningful relationship with customers, it is important for CIBC to effectively engage with them in the CIBC Mobile Banking App. Right now, the app uses a hamburger menu to organize a multitude of features, from personal finance to product promotion. Hiding all the navigation options in a hamburger menu can make it difficult for the user to find what they are looking for within it.
Understanding the Customer: Financial Personalization
of Pioneers* are willing to share financial data for personalized advice.
95%
94%
95%
of Pioneers* are willing to share data for financial insight based on current location.
of Pioneers* are willing to share data to reduce injury/health risk.
* As per Accenture’s 2019 Global Financial Services Consumer Study, Pioneers are classified as young, innovative bankers. 50% are either millennials or Gen Z.
Geographical Data
Data from mobile devices can be used to provide personalized services and products
Transactional Data
Transactional data can be used to provide personalized discounts and offers
CIBC can address the developing needs of young bankers by leveraging consumer data and providing them with personalized insights; all with myCIBC.
myCIBC employs a three-pronged approach to ensure consumers are truly being understood. This is reflected through the collection of transactional, geographical, and mobile data (from a variety of apps).
By providing customers with individually-generated insights, the perception of CIBC as a vault is deconstructed. Instead, it develops to become a holistic financial provider.
Consumers will be increasingly incentivized to share more data with the bank, and are more likely to develop a relationship that extends beyond classical investing, lending, and financial holding.
myCIBC
Your data. Your money. Your choice
Locational Data
Analyzing location-based data can provide insights into desirable brands and services near the user
Introduction
Member
Partners
Infographics
Contact us
By requesting access to more consumer data, CIBC can shift from solely providing personalized budgeting tips (for which CIBC Insights is used) to generating entire customer profiles based on observable patterns and trends.
myCIBC
Your data. Your money. Your choice
Transactional data can be analyzed on a recurring basis to understand consumer desires with more specificity. CIBC can then notify consumers when desirable products have special offers through certain vendors, and act as a filter for their clients.
Locational data can also be collected in order to examine specific businesses that customers enjoy interacting with. Once this has been identified, customers can be notified about deals and discounts these businesses may be providing.
myCIBC can additionally request access to more applications within one’s mobile phone. This would provide insight into things like one’s Health app, which can be analyzed. Further suggestions can then be provided (like purchasing fitness equipment based on low athleticism) with respect to one’s financial flexibility.
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Redesign Mobile UI for increased personalization
By providing increased flexibility within CIBC’s Mobile App, customers will be able to interact with the bank’s services with more ease. The ability to personalize one’s hub as per their desires ensures that all customers can consume information in whichever means is most effective to them.
Pilot myCIBC within controlled groups
Before implementing myCIBC for general use, the platform can be tested within controlled groups. This will allow for preliminary data collection and close contact with the testing group, so iterations can be made in relation to any concerns on the platform,
Initiate mass data collection for myCIBC
Consent is an important part of the myCIBC implementation plan. As such, after initial iterations have been performed, CIBC should begin to promote the program with information in regards to what the consumer’s data will be used for. This will allow for increased transparency when the bank begins to amass customer behavioral information.
Release myCIBC for commercial use
Once initial testing has been performed and customer data has been collected, myCIBC can begin to be implemented within mobile applications. This will allow CIBC to act as a partner in the financial journeys of young bankers, thus helping assert market dominance.
Implementation Plan
Samay Bhagat
Madhav Prakash
Timothy Washburn
Rudransh Arora
Viraj Shah
Thank you, CIBC!
Joining a multinational bank in its efforts to engage GenZ in the financial world has been incredibly insightful. This challenge was more than we could’ve ever hoped for, and we’re extremely grateful for all the real-world experience. If you have any further inquiries, don’t hesitate to reach out to us; we’d love to hear from you!