Dykstra: CUs' Aging Membership Is a Worry
Know how millennials differ from baby boomers.
"Credit unions' prime borrower age is 25-44—but the average age of our members is 48," Diana Dykstra, president/CEO, California/Nevada CU Leagues, pointed out during her keynote address last week to the CUNA HR/TD Council Conference in Hollywood, Calif.
"I worry about that. Baby boomers really fueled credit unions' growth, but Gen Y, representing more than 75 million consumers, remains sorely underrepresented in our credit unions," she says.
This group is very different from baby boomers, and it's important for human resources and training professionals to understand all the ways in which they're different, Dykstra advises. This will aid in developing recruitment and retention strategies.
"They value experience, they're very mobile, and they care less about 'things,'" Dykstra says.
"Gen Y is about a shared economy, too," she adds. "As an industry, we must seriously rethink the products and services we offer them."
For further insights, she cites findings from the Millennial Disruption Index, a three-year study of industry disruption caused by this age group:
- 73% of millennials would be excited about a new financial product from Google, Amazon, PayPal, or Square;
- 71% would rather go to the dentist than a financial institution; and
- 53% say current their current financial institution is no different than any other.
"How they bank will be completely different in the next five years," she says—and one-third say they don’t need a financial services provider at all.