MADISON, Wis.–Just about every credit union and trade association has been focused on Millennials, but as new research acknowledges, a “flood” of members from that demographic has not happened. The Filene Research Institute has released a new study that it says offers some answers to “what Millennials want” and perhaps opening the floodgates a bit.
In the new analysis, “What Millennials Want: The Future of Millennials in the Credit Union System,” author Andrew Turner, a lecturer at the University of Wisconsin-Madison Law School, notes that attracting Millennials is “not just good business; it’s a survival imperative.”
“Millennials 18–24 years old have been a key focus for credit unions over the last 10 years—and for good reason: There are nearly 71 million Millennials, born between the late 1970s and early 1990s, in the United States today,” Filene said in releasing the research. “The potential for credit unions to capture a significant market share of this demographic is pretty high by even the most conservative estimates or projections. And yet, the flood of new members has never really happened.”
Why have credit unions struggled in capturing the hearts and minds of Millennials throughout the last decade? It’s a good question, notes Filene, observing that, “After all, the financial meltdown of 2008 should have been the turning point for credit unions to overtake banks as the primary financial institution of choice for young adults. The stigma of the word ‘banks’ should have been enough to drive Millennials toward credit unions. Do the youngest Millennials understand the credit union concept as well as their parents and grandparents do?”
The new study seeks to provide some answers to those questions, including what has been done and can be done to help the youngest millennials better understand the credit union system and the principles it operates on.
“Using a mix of primary research and literature review, we were able to create a foundational study that outlines how 18- to 24-year-olds currently perceive credit unions, whether they differentiate between banks and credit unions, and whether credit union characteristics such as nonprofit status and member governance matter to them,” Filene said.
The study suggests strategies and thoughts worth considering, including:
- Technology isn’t enough to impress. Going mobile is effectively meaningless as a differentiator because everyone is doing it. Given that the cell phone is one of the fastest-spreading technologies in history, defining Millennials as the “mobile generation” is shortsighted as it “defines everyone.”
- Social media is crucial for engagement. It can’t be done halfheartedly. It must spring from the authentic nature of the organization. Credit unions that successfully employ social media use it as extensions of their work, and not just for marketing.
- Focusing on price will cost credit unions the game. Credit unions have to demonstrate that a credit union is much more than an affordable and fair bank, or they will be unable to compete.
For more info: www.filene.org.