By Render Dahiya
You probably already know that millennials are the largest, most diverse generation of Americans, comprising a third of our nation’s population.
But how are they consuming financial services today and what can you do to capitalize on this valuable segment? I wrote an article that was featured in Credit Union Journal recently to address that very question.
To really understand what consumers – and millennials in particular – want from a financial services provider, Arroweye Solutions conducted a nationwide survey and asked people about their banking habits. Millennials offered some interesting information about what they expect from their financial institution:
- Millennials are more likely than other generations to be “unbanked,” as 14 percent are without a traditional financial services provider. In other generations, only 10 percent are unbanked. What’s interesting is that millennials just about as likely to be unbanked as they are to be credit union members – which means some of your competition is coming from untraditional financial services.
- Fewer millennials bank with credit unions. Only 16 percent of millennials bank with CUs compared with 20 percent of other generations. Millennials that do bank with credit unions tend to use traditional services such as savings accounts, debit cards, prepaid cards, and savings accounts.
- Millennials do bank via mobile considerably more than other generations, but they don’t have to do everything on their phones. 51 percent of millennials use mobile banking versus 36 percent of other generations but they actually prefer to bank online.
- As with other generations, millennials rarely physically connect physically their financial institution (FI) branch except through the physical credit, debit and prepaid cards associated with their accounts. Each of these cards offer exceptionally valuable real estate that should be used to maximize brand reach.
- Millennials love the opportunity to personalize their plastic cards. When given the chance, 45 percent have taken advantage of the opportunity to personalize the design or image on their card. Nearly two thirds (63 percent) want the option of personalizing cards but more than half (59 percent) report that personalization is not an option through their FI.
Today companies are under more pressure than ever to gain and retain connected consumers, especially millennials, who are looking for more personalized and engaging ways to bank. Credit unions do a better job of keeping customers of all generations satisfied, and should continue to offer millennials online and personalized options to keep them happy with your brand and create loyal customers for years to come.
