Play up trust to draw hyper-connected millennials: PSCU

January 22, 2016

ST. PETERSBURG, Fla. (1/22/16)--The PSCU GEMagination Report offers credit unions insight on tapping the tremendous potential of the millennial generation.

Millennials exhibit loyalty differently from previous generations, according the report from the St. Petersburg, Fla.-based credit union service organization. They are less hesitant to switch, particularly when they believe there’s a better and easier way to accomplish something.

Combine their different sense of loyalty and a well-documented distrust of corporations and institutions, and the result is their tremendous potential to be a disruptive force.

The study was based on interviews with a select group of millennials to acquire insight into the participants’ unmet and unarticulated needs for financial services.

Among the ways credit unions can attract and engage millennials:

  • Earning trust and building confidence;
  • Personalizing experience;
  • Providing more efficient customer service;
  • Providing an authentic, genuine experience;
  • Providing a desirable branch experience; and
  • Providing an integrated experience.

To meet these challenges, credit unions must:

  • Increase the knowledge and skill level of team members to meet the expectations and needs of millennials. This could include consolidating branch functions and interactions for one-stop-shop” responses and resolutions;
  • Provide more integrated solutions, dashboards and other initiatives to provide more personalized interactions with credit union members;
  • Work toward increased transparency--up front--regarding terms and fees; and
  • Consider going to places of business to reach out to potential members.

The study said it was clear millennials want their relationships with financial institutions to be less about selling and more about providing solutions and options. Financial institutions also must move from a transactional to a more consultative role. They also should transition from requiring a fixed level of net worth to provide access to advisory services to meeting the younger generation where they stand financially.