Millennials Are the Key to Credit Union Growth

By admin | Credit Union

Jun 01

With the growth of credit unions, millennials are being recognized as a key driver and a target market for their sustained development. This is according to a study by TransUnion.

In the first quarter alone of 2016, 25 percent of the entire credit union members were actually millennials. This is already a significant increase from the 20 percent way back in 2013.

The growth of credit unions increased to 6.35 percent per year, and the millennials were said to have played a key role in this growth. Nidhi Verma, TransUnion’s senior director of research and consulting, said that millennials are an important group of borrowers for the growth of credit union. She also said that credit unions have been observed to have grown in millennial membership and have in fact experienced growth quarter by quarter since the year 2010.

Verna said that millennials are the potential target when it comes to new mortgages and other credit products and services.

Aside from this study, TransUnion also conducted another survey of 96 credit union executives which has shown the growth of credit unions by 42 percent at an annual rate of 5 percent for the minimum.

So how do credit unions make it happen?

In order for credit unions to grow their membership, especially when it comes to millennial membership, they must have or must implement certain strategies to support their goals. Here are some of the ideas being used that others can use too:

  • Digital delivery of core services

    One of the things that attract young adults is the convenience of how services are being delivered to them. They want everything accessible through mobile, online, ATM, etc. And in order to convince them to use the services of a credit union, they should be able to use online and mobile technology so that they can easily manage their finances.
  • Respond to millennials’ payment expectations

    Millennials are used to comfortably utilizing e-commerce payment systems just like Google Wallet and PayPal, so they prefer that these options are available when they make payments. Gone are the days when everybody did not have a choice but get used to banking’s typical physical instruments such as credit cards and debit cards.
  • Design products for life transitions

    Young adults need to feel that there is someone who can make borrowing easy and accessible, especially when they encounter life transitions like starting their own careers, investing in a car, or house, or starting their own families.
  • Create a unique experience for millennials

    Most millennials do not have the time to listen to what banks have to say. Instead, what they are looking for is an intimate and personal level experience.
  • Make millennials as ambassadors

    It is a lot easier to attract millennials when credit unions have employees who can reflect the target audience. That is because they are fond of sharing experiences. So, when credit unions have employees who have a complete understanding of the systems, they can become ambassadors for the organization.
  • Get millennials on the board

    It is important for credit unions to have young adults as part of the board. This way, they will be represented in the boardroom and will have their voices heard.
  • Embrace diversity

    Because the millennials are the most highly diverse generation, credit unions should make it a point that their programs are designed to tailor fit to many different communities.
  • Actively engage on social media

    The social media has been an effective means for people not just to communicate but also to establish connections. This is something that credit unions can leverage on especially when reaching out to young adults. With the help of social media, they can build a community of engaged and loyal members who will be more than willing to share their experiences with others.
  • Make millennials equipped when it comes to money matters

    Financial education should be brought to where young adults are, and that is in the social media and in smart or online devices. There are online tools that credit unions can make available for the use of young adults so that it becomes easier for them to manage and transact all their financial accounts.

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