Reasons Why Millennials are turning to Credit Unions instead of Banks

By admin | Credit Union

Jun 30
Credit Union Millennials

In the past few years, an increasing number of millennials have switched from banks and turned to credit unions. They are the ones who are called “modern consumers” and the ones who have refused to follow the financial footsteps of their parents. And one of the major reasons is because of the non-profit nature and tradition of credit unions as a financial institution.

Millennials today always have something they look for in a company, in a brand or an organization. And in a credit union, they have seen what they are looking for, and that is the human side of a financial institution.

There are actually a number of other reasons why credit unions have been found to be a better fit for the millennials, and here are some of them.

1. Credit unions are known for the superior customer service they provide

People have had the perception that banks are not easy to do business with, and that they are far from credit unions. One of the things that credit unions actually take pride in is the quality of customer service that they provide their members. They are more flexible and considerate especially when it comes to the needs of the members because at the end of the day, their priority is the welfare of the members.

2. Loan application and approval are much easier in credit unions

Unlike in most of the banks, applying and getting loans approved in credit unions are much easier. Their qualifications are easier, too. This is the reason even millennials who have low credit scores seek out credit unions for their personal loans because they know that they have higher chances of getting the loan application granted.

3. Credit unions now have mobile banking options

Banks are not the only ones who gravitate toward technology because now, credit unions also do. Credit unions offer almost the same online banking services that banks do, so there isn’t much difference. Members are still able to access their accounts with convenience using their mobile phones and smart devices. In fact, many are not even satisfied with the online experience that they receive from their banks.

4. Millennials are more particular with the deals that they shop more than other generations

Millennials are very pickier when choosing the best deals especially when it comes to loans. They are very particular with the features and benefits of the services offered to them. That’s because they are a smart bunch of consumers and they know exactly what they need.

5. It is easier to join a credit union now than before

If you want to become a credit unions member, the process should be easier. Unlike before, you do not have to be affiliated with a certain group anymore. Usually, credit unions are established or built in a local neighborhood or community. It means that in order for you to qualify for a membership, the only thing that’s needed is your residency in that particular community. You just need to live in that town or city.

6. Millennials who are on a tight budget prefer credit unions

Credit unions are undeniably the choice of those who are not only on tight budgets but also those who want to get away from the many fees and charges, as well as the high-interest rates of the banks. This is one of the reasons why Millennials appreciate credit unions, and that is because of the fact that they are a non-profit organization. They do not exist to simply make money to make the stockholders wealthy. They exist to serve their members and address their needs.

7. Millennials feel that they more valued in credit unions

Unlike banks which are owned and run by the shareholders, credit unions are owned and managed by the members. The decisions and changes are voted for by the members because a credit union is a cooperative. The members feel that their voices are being heard and that they are valued. Their feedback and opinion matter to the organization. They feel that credit unions do not extract value from their people and communities, but rather add value to them.

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