Generation Y is entering a life stage of wealth accumulation, and at the same time we’re losing trust in traditional financial institutions.  Tired of being nickelled and dimed by faceless banking fees and changing regulations, we seek financial advice from family, friends, free web content, and even books or magazines (wait… we still read?)  before turning to a bank.

The consumer banking industry is facing a steep challenge connecting with Millennials, but those who understand our priorities and preferences will create a powerful strategic advantage. Here are a few Gen Y trends that today’s financial leaders cannot ignore:

1. 47% of Gen Yers are ranked below average in financial literacy. 74% don’t use a budget, and 45% classify their financial situation as ‘bad.’ Add that to an average of $24,000+ in student loans per person, and you’ll see that Gen Y’s need for financial services is huge (even if we don’t know it). This untapped demand for expertise is the biggest opportunity to win and keep an entire generation of banking customers.

2. In an age where communication and information exchange is constantly evolving, Gen Y is so over checkbooks and cash. However, we haven’t found the right tools to help us self-manage our money in a way that keeps stride with our digital lifestyle (PS—I still don’t know how to balance a checkbook).

3. 76% of Gen Y says they will pay a monthly fee for excellent mobile banking services. Genuine assistance tailored to our specific needs will garner big business from a generation notorious for seeking free information-based services. Free web-based personal financial software (ie. Mint.com) has experienced some success at creating Gen Y friendly tools. However, they lack the authenticity, market exposure, and access to personal information that banks already have.

The financial institution that successfully creates practical digital banking suited to Gen Y’s preferences will earn and keep Gen Y dollars. Furthermore, Gen Y is the trendsetter in mobile technology: win us over and you get everyone who follows our lead.

Our ideal digital banking solution will not be a simple copy and pasting of rudimentary banking services to the internet. We are looking for the Google of personal financial managers, the veritable Apple of bank apps: it will redefine the average consumer’s relationship with money. What will this system look like?

1. Intuitive yet Sophisticated. The system’s user interface will automatically convert the complexities of money management into results-oriented graphics and quick hits of information. Complex drop down menus and traditional HTML navigation will be swapped for a simple hands-on environment. If this system were to be an iPhone app, it would be as user-friendly as downloading it.

2. Transparent and Friendly. The system will not feel bearish, nor will it coddle or talk down to its users. It will automatically collect and organize our financial data, and make that information easily accessible, searchable, and usable.  Nothing in the system (and therefore our financial lives) should feel arbitrary or unknowable. Instead, the system will empower us to make optimal, informed financial choices on a daily basis.

3. Secure and Professional.  Users should feel like this system is as iron-clad as walking into a vault. The system should not feel like a toy or a gimmick. Warning: This system should not operate through social media. Banking on Facebook feels like making a serious financial decision in a mall food court.

4. Full service and seamless. The system will know me. I won’t have to supply my information four times for every one service request. The system should provide a complete portrait of my financial information, and allow me to quickly adjust that portrait while investigating my financial options across many functions (from checking and savings, to credit and taxes, to mortgages and retirement.) The system should be discerning: forthright and helpful when needed, invisible when not.

The internet put Gen Y’s purchasing power anywhere and everywhere. An essential component to this shift is securely doing the same for our financial information. Gen Y, the first generation to be dependent on technology daily, is prepared for (and in need of!) software to help us quickly and easily become fiscally savvy. Which begs the question: Who will be the first to define and sell mass financial literacy to a generation with powerful growing spending power?