Is your credit union prepared for the $30 trillion wealth transfer?
How to reach younger members as money shifts from boomers to millennials.
The world is evolving to be more digitally reliant. Millennials are accustomed to running their lives via their smartphones. So, it is no surprise that the primary factor for pioneering technological growth in the last few years is attributed to the need to reach new members. (Source: FinanceOnline.) As an industry, we need to be at the forefront of secure, simplistic financial technology offerings, especially now that we are at the threshold of the $30 trillion wealth transfer from baby boomers to millennials. How do we reach them and how do we stand out?
At Spave, we conducted consumer research to better understand what millennials and Generation Z want. Our research revealed that these members want more control over their finances. They told us:
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- Show me you know me … and make me trust you.
- I know what I want, and I want it now.
- Whatever you do, do not make me work for it.
- I want to know that I am making a difference.
What does this mean for the financial space as a whole?
We need to provide simple and relevant financial tools to attract and engage this new generation of members AND serve a greater purpose.
A recent study featured in Forbes shared these consumers are four to six times more likely to purchase, protect, and champion purpose-driven companies—citing 70% of Gen Z + millennials believe a brand should have a purpose they personally believe in.
This is where “Tech for Good” comes into play. In its most simplistic definition, “Tech for Good” is a technology built with an underlying social purpose. Consumers demand more than a quality product experience; they increasingly care about a brand’s impact on society. They want to see organizations make authentic commitments to social good. Technology is only one part of the equation; financial institutions need to evolve socially to appease emerging consumer demands too.
Have you thought about “Tech for Good” at your credit union? As we move into strategic planning season, it’s a great time to ask if your organization has a strategy not only for engaging with millennials and Gen Z, but also how it aligns with a greater purpose. After all, “If you aren’t fully embracing the ‘Purpose Economy’ by now and transforming your entire organization, you are going to join the likes of Blockbuster, RadioShack, Sears, Kodak, and Tower Records.” — Aaron Hurst, author of “The Purpose Economy.”
Sarah York is chief marketing and digital officer at Spave.
About Spave
Spave® is a woman-founded fintech company designed to empower personal financial independence and charitable giving through its mobile solution. Founded in 2016 and acquired by Reseda Group, a wholly owned Credit Union Service Organization of Michigan State University Federal Credit Union, Spave's proprietary technology platform and process solves challenges with balancing spending, saving, and giving habits for consumers (particularly millennials) using cutting-edge mobile technology. It is designed for users, by users, to help financial institutions and nonprofits better engage with their constituents.