Millennials (those who are between the ages of 18 to 34 in 2015) are ditching their big banks and becoming members of credit unions. They want the convenience and technology that the big banks can offer but they also want to make sure their banks are paying attention to their needs, by offering customer-friendly service and simple, straightforward solutions that they are demanding.
Millennials know exactly what they want from their bank and everyone is chasing this potential new member. So, understanding their perceptions and needs will help credit unions compete for this sought-after audience.
Below is a closer review of some of the reasons why millennials are scrapping their banks and joining community institutions:
- They are seen as more customer-friendly and can answers questions directly regarding financial security. They are very helpful when it comes to imparting information regarding car and home buying by offering members education services and solutions that are easy to consume and utilize.
- Qualifying for a loan will be easier, because their requirements are not as rigorous. While banks tend to turn away millennials with a low credit scores, they roll up their sleeves and make it happen.
- These younger members crave more high-touch and want to make sure someone is paying attention to their needs. They want to know there is a real person on the other side of the phone and get their questions answered quickly. They want it when they want it and how they want it.
- Mobile banking is a necessity. Millennials manage their lives on the go so it is important that credit unions deliver a smooth and instinctive mobile experience.
- Millennials are intuitive consumers and they quickly find deals and share opportunities including rates on car loans, credit builder loans and student loans. Maintaining the lowest and best terms will give the them a greater appeal over a traditional bank.
- Credit Unions are superior in focusing and competing on financial health. Millennials view them as a trusted resource for financial advice and a partner that specializes in member service.
- Millennials are also saying bye bye to their banks because of ATM-related reasons. There is either not enough of them, inconveniently located or high fees associated with using them.
There is a natural alliance between the values of Gen Y and the mission of credit unions. These modern consumers do not follow the financial path of their parents. They want to encounter a high-touch, high-tech brand experience by discovering the human side of banking provided by credit unions. By focusing on this age group credit unions are learning and adapting to ensure they are on the cutting edge of the banking technology.