CUNA’s 2015-2016 Environmental Scan (E-Scan) is just off the press. Among the notable trends: credit unions’ millennial problem.
In the decades ahead, the U.S. population will shift toward younger, more racially diverse, and more mobile consumers.
But the “problem” is that nearly three-quarters of these younger consumers today know nothing about a credit union, reports Myles Bristowe, chief credit union marketer for PSCU. Of the few that have some knowledge, just 7% can articulate at least one way credit unions differ from banks. And most millennials distrust banks.
Bristowe believes credit unions can fill a desperate need for these consumers. For more than a century, credit unions have fought for the underserved by putting people first. Increase your relevance to young adults by identifying their needs, Bristowe says. And then work to build their trust.
Understanding more about these consumers can guide your membership growth strategies, the E-Scan notes. Along with a lack of awareness, they face a slew of challenges.
Workers ages 25 to 34 currently have an unemployment rate of 5.8%—up from current national rate of 5.4%— while those ages 20 to 24 reflect a remarkably high 9.6% rate, points out CUNA economist Mike Schenk.
And most recent college graduates consistently experience unemployment rates double the average of their counterparts who’ve been in the labor force longer, Schenk says.
Millennials also are:
These challenges make engaging with this group more difficult—but so important, Schenk says.
In our annual National Member & Nonmember Survey, we explored how credit unions could move the needle and attract more millennials.
What we discovered:
In our August issue, we’ll highlight more exclusive results of our research—and suggest ideas that might help solve this millennial problem.