SPOKANE, Wash.–Credit unions are consistently being told they need to know even more about their members. But one person said understanding non-members is equally critical.
Gerry Singleton, VP-CU System Relations with CUNA Mutual Group, drew upon the company’s “What Matters Now” research to share some insights on non-credit union members and where they offer opportunities in remarks to the Northwest Credit Union Association’s MAXX annual meeting here.
The reason many people don’t join credit unions won’t come as a surprise to many, pointed out Singleton.
“The number-one reason Millennials don’t use credit unions is they don’t know much about them,” said Singleton. “In addition, 2017 research has found that they primarily rely on a recommendation from a friend or family member on which financial institution to use.”
“Non-member” can be a not-so-certain term, the research found. As CUToday.info has reported, CUNA Mutual’s research has found one-out-of-every four people have a product through a credit union and don’t know it and as a result don’t identify as a credit union member. Just 11% of them are indirect members.
“One-third have a savings account, and more than 50% have a checking account and/or a credit card,” said Singleton. “This is opportunity number one. They are the low-hanging fruit.”
While 60% of consumers said their credit union is their primary FI, the other 40% of members are another opportunity, said Singleton.
When reaching out to all groups, including true non-members, Singleton said each audience has a different mindset with different needs, behaviors and perceptions, so the job of credit unions is to “meet them where they are.”
Why don’t people who are aware of credit unions join? The What Matters Now research found there is a perception of CUs having limited access, including online; a perception of weak security, and a misconception credit unions are only for special groups or people.
“Nearly a third of these non-engaged consumers are Millennials,” he said, “and a third are also racially diverse. Consider Boomers’ influence over their Millennial children. It’s high. Millennials are under-represented among credit unions. Nearly half of Millennials who use a credit union were referred by a family member or friend. So referral programs work if they are done correctly.”
Millennials say they prefer local financial institutions, said Singleton. So the initial job is to inform them credit unions are locally based. Beyond that, when asked what it would take to get them to move to a credit union, Millennials listed financial incentives for opening accounts, better interest rate on loans, and free financial planning/counseling, such as workshops, as the top reasons. “That last one is what we’re all about.”
For more information: www.cunamutual.com/whatmattersnow