For all their claims of customer-centricity are banking institutions doing enough to endear themselves to the customers of the future? What are governments doing to progress the interests of their younger citizenry? And what are the choices facing all three?

The “customer next” is young, highly networked and connected, and will control approximately US$ 10 trillion in spending power by the next decade. Heady stuff. But the real source of power of these customers is the ability to influence public opinion and incite real action against issues such as unemployment, inflation or political suppression, all in the space of a few days and a clutch of social networks.

Unfortunately, neither governments nor financial service institutions are really listening. For instance, in the United States, scientific education and innovation, the foundation of job creation, have both taken a back seat in recent years. Financial institutions are adding to the pain of the average citizen by imposing new charges, such as interchange fees, and resorting to large-scale retrenchment. The situation is perhaps best captured by the fact that today, the U.S. spends four times more on a 65 year old than on someone aged 18!

If economies, banks and their future customers are to co-exist in harmony, they need to resolve a few conflicts. Each of them, in their own way, must decide whether valuation is more important, or value. For banks, this means choosing between the same old valuation-driven policies that benefited 1% at the cost of 99%, or a new philosophy that puts the interest of customers above all else. For governments it’s a choice between bailing out those banks that are too big to fail and helping smaller, community-centric institutions. Even individuals face a similar dilemma – whether to “invest” in a bank, which promises valuation or support a smaller agency that is steeped in values.

The second conflict is one of growth versus sustainability. Should governments, banks and customers focus on sustaining what they have – such as an existing economic structure, a captive domestic market or a safe investment portfolio – or chase new but riskier growth opportunities?

And finally, all of them must choose between the single and the universal; between remaining a part of a larger alliance or community, and striking it out on their own. These are the tough choices occasioned by the new reality, the new normal and the new customer.