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Credit Unions Winning Over Millennials
Thursday, October 23, 2014 6:45 AM

Credit unions and millennials share many of the same values—they want to support local businesses, and technology, mobility, convenience, and a mission are critical to them. According to Inc. magazine's Vince Passione, we're making progress in the endeavor to win over this influential demographic.

Passione says, during Occupy Wall Street, millennials made up more than 60 percent of the protesters, and back in 2011, millennials fought back against major fees that the big banks were planning on rolling out, and designated November 5th Bank Transfer Day—the official day to cash out of these banks and switch to a local, not-for-profit credit union.

All four of the largest US banks are on the millennials' list of the top 10 most hated brands. They rated banks the lowest of any financial institution on a customer satisfaction survey—11 percentage points below the industry average.

When it comes to banking, millennials have high expectations. In response, credit unions are becoming more tech-savvy and agile and can now do everything or almost everything big banks can do. As member-owned community businesses, credit unions are positioned to appeal to this group.

Entrepreneurial and independently minded, millennials care about the world around them and are characteristically more tech-savvy, well-informed, product-driven, and civic-minded than their predecessors. And they're less brand-focused. With an estimated population of 86 million people—7 percent larger than the baby-boomer generation—millennials' influence is massive, and the financial world is realizing that they don't necessarily fit into the mindset of banking at the big banks.

A whopping 81 percent of millennial credit union members said their institution provides an "outstanding customer experience" compared to 59 percent of bank customers responding so for their banks.

There is a natural alignment between the values of millennials and the mission of community banks and credit unions. By focusing on millennials, credit unions are learning and adapting to ensure they are on the cutting edge of banking technology.

 

Source:  Inc. Magazine