RALEIGH, N.C.–What do college students really think and know about credit unions? What do they really think and know about finance? Some of the answers as revealed in a new series of interviews will be eye-opening to many in credit unions, and will likely send decision-makers back to the digital drawing board if they want to capture the next generation of members.
The interviews were conducted by Zogo, a fintech founded by undergraduate students at Duke University that is focused on innovative ways to use mobile first to improve financial literacy. The company recently won Best in Show during the Finovate fall conference, and earlier won NACUSO’s Next Big Idea competition.
Zogo has partnered with CUToday.info to highlight the attitudes, beliefs and misconceptions of college students in order for credit unions to better understand the market, identify where opportunities might lie, and inspire some new thinking around where messaging might need to rethought.
“With this series, we want to deliver the freshest and the most authentic content for the credit union community,” said Bolun Li, founder of Zogo. “We are not a research institute, or some market intelligence companies. We are just three college students who really believe in the credit union movement and want to help.”
Bolun Li
The interviews conducted by Zogo on college campuses probe for the viewpoints and perceptions of a variety of students who are asked how they learned about personal finance; what financial lessons (if any) have stuck with them; what creates loyalty; what they know about banks, credit unions, insurance, and financial terminology; how they came to select their current providers, and much more.
“These are verbatim interviews of real people and not survey results, and credit unions will come away from this series of interviews with some of their core assumptions really challenged,” said Frank J. Diekmann, cooperator-in-chief with CUToday.info. “And that’s the intention of the series and the reason Zogo conducted the interviews—to increase financial literacy, it’s critical to have a real understanding of the member’s and prospective member’s mindset, rather than assuming they know as much as you do. The students interviewed are the next group of members and borrowers at credit unions, and it is in the best interests of both that wise decisions are made.”
Below if the first in the series of interviews conducted by Zogo with the students. Subsequent interviews in the series will appear in The Boost section of CUToday.info, which is designed to promote growth strategies.
Student Shares Her Insights
Name: Leah Nelson
Age: 20
Hometown: Apex, N.C.
Major: Environmental Health Sciences
Grade: Junior at University of North Carolina
Fun Fact: Ranked 3rdin the world at a jump rope competition
Zogo: How did you learn about personal finance in high school?
Nelson: I wasn’t taught about personal finance in high school through the education system, but my parents taught me a little bit.
Zogo: What do you know about personal finance?
Nelson: My dad taught me how to balance a checkbook and they told me not to overspend.
Zogo: How can a person increase their credit score?
Nelson: I think you have to use your credit card and make your payments in time, but I’m not sure.
Zogo: What is an insurance deductible?
Nelson: Is an insurance deductible like a copay? Like what insurance doesn’t cover?
Zogo: Can you describe banks to me?
Nelson: I guess a bank is just like a place that is for holding money in accounts for people.
Zogo: Who do you bank with?
Leah Nelson
Nelson: Suntrust.
Zogo: What is your relationship with your bank?
Nelson: I like Suntrust. I think they’re pretty good. I don’t have a lot of money in my account.
Zogo: Do you feel loyal to your bank?
Nelson: I guess I’m kind of loyal to them right now just because my parents use Suntrust. So I’ll probably just stick with them for the time being.
Zogo: Can you describe credit unions to me?
Nelson: I cannot. I’m not exactly sure what it is.
Zogo: Credit unions are like banks, but they’re non-profit. When you open an account at a credit union, you become a member and own part of the credit union. So while traditional banks are run by shareholders whose goal is to maximize profits, credit unions return all profits to their members in the form of reduced fees, higher savings rates and lower loan rates.
After hearing this description of credit unions, how has your attitude towards credit unions changed?
Nelson: I’m intrigued! I think credit unions sound pretty cool. I didn’t know the difference between them and banks.
Zogo: What are some things that a financial institution can do to make you feel loyal towards them?
Nelson: I guess just if they’re trustworthy with my money. And good interest rates would be a plus.