Youth in Focus...Here’s the Banks’ New Plan!

Union Finance Minister Nirmala Sitharaman has asked public sector banks (PSBs) to focus more on taking banking services closer to young people. She said banks should not wait for youngsters to visit branches but should proactively reach out to them. She suggested launching a month-long ‘Banking for Youth’ campaign from October 2, targeting people aged 16 and above. The initiative will focus on creating awareness about banking services, from opening accounts to conducting financial transactions.

The minister suggested using colleges, universities and other campuses as key platforms for the campaign. She also asked the 12 PSBs to develop their own strategies to attract young customers. Banks should aim to build long term relationships with young people rather than limiting their interaction to opening a bank account. The goal, she said, should be to make PSBs the preferred choice for youngsters when they receive their first salary, pursue higher education, start a business or make their first investment.

Sitharaman also suggested that banks could provide free online learning content in partnership with reputed educational institutions. Lifestyle benefits such as fitness and yoga centre coupons or vouchers could also be explored to attract young customers. She proposed setting up youth banking kiosks and assigning employees to assist youngsters with financial matters. Banks should also educate young people about loans, government schemes and the importance of credit scores, while the Indian Banks’ Association could consider creating a dedicated portal offering information on banking services and financial opportunities.