How successfully credit unions attract the 100 million members of Generation Y—people born between 1981 and 2000—will go a long way toward determining the movement’s future viability.
Credit unions must raise Gen Y’s awareness levels. CUNA’s research from April 2013 shows that nearly half (45%) of nonmembers ages 18 to 24 are “not at all familiar” with credit unions. Another 26% are “not very familiar,” and 20% are “somewhat familiar.” Only 8% are “very familiar.”
On the upside, credit unions’ not-for-profit, cooperative business model resonates with Gen Y. These consumers also value the financial guidance and advice available at branches. Credit unions must communicate their Gen Y approach to those prospective members via an effective social media strategy that employs Twitter, customized text messaging, blogs, and online social communities.
They also must connect with Gen Y’s most trusted financial advisers—their parents—using channels appropriate to that generation.
CUNA compliance staff recently responded to a query if credit unions are required to disclose the numerical value of the military annual percentage rate to borrowers covered under the Military Lending Act.
Following its groundbreaking comprehensive study on regulatory burden, CUNA released its new Regulatory Burden Calculator that allows individual credit unions to assess the impact of regulation on their operations.
After months of advocacy by CUNA, the CFPB Thursday wrote to CUNA announcing it will initiate a rulemaking this summer to address issues with the bureau’s Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosures rule.