Millennials are open to new experiences such as joining a credit union if the institution provides useful services, such as classes and self-service coin counters. According to CCG Catalyst, 90 percent of all millennials have a relationship with a traditional bank or financial institution. However, according to the CUNA Mutual Group, only 25 percent of millennials keep their accounts at credit unions. The largest reason that millennials do not use credit unions is because they are confused what exactly a credit union is. However, the uncertainty goes away quickly with more information. More than 69 percent are open to joining one once they know fully what a CU can offer.
Credit unions can appeal to these young account holders by providing services, classes, community events and devices such as self-service coin counter.
Credit unions that are succeeding with millennials are doing things far differently than their competitors. According to Forbes, credit unions are providing unique experiences that are personalized to the community in order to get millennials to participate or open accounts. For example, credit unions in low-income neighborhoods are providing free English classes, computer literacy, home buying, mortgage financing and even citizenship testing courses. Other credit unions feature events such as happy hours, workshops and "meet an investor" open-panel events for millennials to ask their financial questions. Other credit unions that cater to millennials include "Oopsie Refunds," an active refund for one overdraft fee per quarter as long as students show they are actively financially learning with the credit union.
Other credit unions that have been successful with millennials include mobile applications, picture-check deposit features and the ability to pay using Apple Pay and other mobile payment services.
A credit union can delight the core customer audience of millennials with self-service coin counters and valuable financial advice. A possible incentive for an account holder could be that for every $100, $200 or $300 saved with a coin counter, a member can receive a small gift card or free investing consultation by showing their receipts. According to the Harvard Business Review, millennials deeply enjoy the idea of gamification and this concept leads to higher levels of customer loyalty.
By putting their customer experience first, millennials will be more likely to recommend a bank or credit union to family and friends. This word-of-mouth marketing can help the credit union gain a steady stream of loyal customers and also increase positive public relations and profits for the company.
June 3, 2016