By Wayne Benson
At this point, we know two things: Millennials hate debt, and they hate banks. We all read the Pew Charitable Trusts report from July, and the results were not that surprising, given the mountain of debt that many recent college grads are facing. As this generation continues to move away from banks, how must credit unions change to meet the wants and needs of a younger, tech-savvy base?
Simple: by adopting technology solutions that not only attract Millennials, but also foster loyalty and good will. You see, it’s not just about the technology itself; it’s about how it makes them feel. It’s about relationships.
First, the expectations: Millennials demand easy access to everything — statements, balances, notices, receipts, transactions—at any time, from any device. With a major shift from paper to mobile, younger members will require online access to all of their needs—with no hiccups.
A few technologies that credit unions need to adopt in order to appeal to Millennials include mobile banking, mobile bill pay, remote deposit capture, mobile peer-to-peer transfers, secure online storage through the credit union for important documents, instant card issuance, relationship pricing and a first time buyer loan program. For now, these are suggestions—soon, as more millennials begin to turn to credit unions, they will become requirements.
Actionable Steps to Take
There are actionable steps credit unions can take now to prepare for this shift in member needs while also staying competitive in the marketplace. A strategic first move would be to implement a targeted marketing campaign for Millennial members based on their behaviors and needs that will establish trust and create brand recognition. Types of campaigns include lifestyle promotions (e.g.: going to college, buying a car, getting married), product promotions targeting millennials (e.g.: members with checking but no debit card and/or credit card, members without mobile check deposits, members without e-statements, etc.) and “all about you” promotions (e.g.: birthdays, anniversaries, etc.)
Another powerful way to build loyalty with younger members is to introduce a first time buyer loan program to your credit union, as younger members have little to no credit. This allows credit unions to provide auto loans to younger members to assist them in building and establishing credit.
Credit unions need to be offering educational information parallel to these programs to best help their younger members. Lastly, credit unions should offer customizable instant card issuance for debit or credit card options, a small gesture that can go a long way as millennials love to illustrate their personalities through personalization.
These are just a few of the steps that credit unions should take in order to attract and keep Millennial members. It’s important to remember that technology is rapidly evolving, and credit unions should partner with core technology and solutions CUSOs that are able to adapt quickly to the needs of this younger generation.
If credit unions don’t stay ahead of the curve, other financial institutions will.
Wayne Benson is CEO of EPL, Inc. For info: www.eplinc.com