By 2020, 42% of the world’s workforce will belong to Generation Y. That’s a generation brought up on a digital diet of Internet, mobile communication, social networking, ecommerce, mobile apps, music downloads and so on. And they are our future banking customers.

What will it take to engage them?

In my view, banks need to focus on three key aspects, namely conversation, conversion and co-creation, and use indices to measure their progress against each.

If statistics are to be believed, the generation of the future banking customer is the most expressive of all time. If the annual conversations on social media were to be printed, we would add 20 million paperbacks to our libraries! These customers are out there airing views, sharing information, voicing indignation, expressing appreciation and in general vocalizing every fleeting thought or emotion that crosses their mind. They freely express their individuality to not only influence the views of their social groups, but also the destiny of products and services.

But I’m not sure the banks are listening. At a recent conference, one of the speakers compared the Facebook “social engagement” index of two brands at both ends of the spectrum – Lady Gaga scored 22; the bank (sadly) a mere 0.17. Quite clearly, banks need to be part of social conversations to strike a chord with the audience of the future.

Once they tune in to the conversation, they can look at converting them into business. And believe me, there’s plenty to be had. A heavyweight consulting firm estimates that by the next decade, customers from the younger generations will hold the key to nearly US$ 10 trillion in spending power. The only way banks can tap into this opportunity is through right selling – ensuring that the right product is offered to the right customer at the right time and place. So it’s time to introduce a new metric – the right selling index – into the sales strategy of the future bank.

Since right selling is all about understanding what customers want and giving it to them, both conversation and conversion are closely linked to co-creation.  The retail, automotive and hospitality sectors are among the most adept at using the content of customer conversations to drive innovation, often jointly with customers. Banks can follow their example by inviting customers and partners into the product creation process. In this endeavor, they can track their progress using a “co-creation index”.