Boost Credit Union Members’ Financial Literacy

The more informed your members are about their finances, the more likely they’ll be to seek out your credit union’s products and services. This fact, tied to the credit union’s “people helping people” mission puts financial literacy at the forefront of most credit union’s concerns.

Did you know that:

• 38% of teens say they’re unsure or unprepared to manage their own banking and personal finances. (2011 survey of high school seniors by Capital One)
• 40% of adults gave themselves a grade of C, D or F on their knowledge of personal finance. (2013 Financial Literacy Study by National Foundation of Credit Counseling)
• 78% said they could benefit from additional advice and answers to everyday financial questions from a professional. (2013 Financial Literacy Study by National Foundation of Credit Counseling)
• 81% of parents feel it’s their responsibility to teach kids about money and savings. (DoughMain’s 2012 study)

Show your members that their financial literacy and well-being are a top priority for your credit union. Financial Resource Center (FRC) is an online tool that comes as an annual subscription, giving your members access to libraries of financially-related articles and financial calculators. CU Solutions Group can even customize your FRC to look like your credit union’s website.

Content is updated monthly and comes to you as a complete turnkey solution. For more information on FRC contact your CU Solutions Group business consultant at (800) 262-6285 or info@cusolutionsgroup.com, or visit www.cusolutionsgroup.com.  

Help Your Credit Union Stand Out from the Crowd – Part 2: Wooing Gen Y

by Amy Neale  

In response to CUNA’s Member and Nonmember Survey Results, we thought we’d address three distinct ways you can help your credit union stand out from the competition. To do each section justice, we’re delivering it to you over a three-part blog series. Welcome to Part 2. 

Wooing Gen Y
When it comes to wooing Gen Y/Millennials, credit unions have a long way to go. According to the CUNA Member and Nonmember Survey, respondents ages 18 to 24 were just as likely to recommend credit unions to others (31%) as they were to recommend banks (32%). Combine this with the aging membership issue most credit unions are facing, and you’ve got a demographic that needs more attention.

Jon Haller, CUNA’s director of corporate and market research points out that most banks get an edge over credit unions when Gen Y hits college and becomes aware of the banks co-branded credit and debit cards. Haller perceptively points out that it all depends on who gets to that generation first. So, what can your credit union do to stand out from the crowd and get there first? Two words: financial literacy.

A recent Wells Fargo survey found that more than half of Millennials say debt is their biggest financial concern. And an impressive 78% said they learned “a great deal” or “somewhat” about personal finances from their parents. The best approach to offering financial literacy programs to your younger members would be to offer it to them and their parents. This could come in the form of financial education articles on your credit union’s website, savings clubs that target Gen Y or even videos or podcasts on your website that discuss various financial topics.

In addition to boosting your credit union’s financial literacy program, you might want to consider developing a marketing program that appeals to younger generations; adding products like first-time auto loans or credit cards for members just starting to establish a credit history; or create financial seminars geared toward the Gen Y demographic. Plus, a strong social media strategy and presence can go a long way to wooing those Millennials. 

CU Solutions Group can help you woo Gen Y with its Financial Resource Center, youth websites, youth campaigns, podcasts and social media expertise. 

Credit Union Growth Through Gen Z and Their Parents

by Amy Neale 

It seems that any credit union marketing article you read these days focuses on Gen Y. Rightly so – they’re at the point where they’re getting loans, mortgages and saving for the future. But you might want to consider expanding your reach to grab Gen Z. Gen Z age ranges vary depending on what you’re reading, but let’s focus on those born between the years 1992 and 2010. And although some of Gen Z may still be learning to tie their shoes, it doesn’t mean that they shouldn’t be on your credit union’s marketing radar as a target demographic.

Gen Z, also known as “digital natives” and the “bubble wrap” generation – thanks to their helicopter parents – are truly unlike any generation that’s come before them. Theirs is a time of a new normal. They were very young or born around 9/11, the burst real estate bubble and the U.S. and global banking crises of the mid-2000s. They will probably never know the term pension, know too well about the Great Recession and their lives have been shaped by more than a decade of economic uncertainty. Their mindset is more like the children of the ‘30s and ‘40s than Gen Y before them.

What does this mean for your credit union? That Gen Z is already thinking about money, their financial future and looking for a financial institution that isn’t just there to hold their accounts, but one that will also serve their growing financial needs, tend to their financial education and give them the tools to guide them into a secure financial future. If that doesn’t sound like a credit union, what does? 

Filling the Connection Gap

These “digital natives” are the first generation born into a digital world. A world of instant gratification thanks to instant music on their iPod, constant Internet access on their smartphones and immediate book downloads on their readers and tablets. But this technologically-dependent lifestyle has left them craving “real” connections. The Consumer Trends Survey from Fiserv Inc. uncovered that the younger the generation, the more likely they are to seek out branches or use call centers at their financial institution. Their tendency is to look for that one-on-one connection when it comes to more complex transactions.

Another survey, this one from TD Ameritrade, discovered that Gen Z mainly worries about affording college (39%) and having a student loan balance (39%). But 55% of those questioned said that if they had an extra $500 that they would save it. These are all ample opportunities for your credit union. And yet, according to a CUNA Credit Union Environmental Scan, two-thirds of credit union members with children at home haven’t signed any of them up for credit union membership. That’s 21.4 million nonmember missed opportunities under age 18 living in members’ households (from the 2011-12 CUNA Survey of Potential Members).

Keep in mind – it’s easier and less expensive to reach these young potential members through their parents than to stand out from the crowd once they’re grown. Here are a few recommended places to start:

• Youth programs – Whatever youth age group you’re targeting, there’s a youth club/website out there to capture them. Just make sure the program is age-appropriate and not talking down to them. It should also financially position them to move into the next age group. Savings clubs are a great place to start. (Check out our Growing Members program!)
   
• Financial calculators – Any online financial tool you can provide Gen Z and their parents so they can make solid financial decisions together helps build confidence in their choices and your credit union.
   
• Financial education – While parents are usually the first place kids go for their financial education, having a youth financial literacy program illustrates to kids and their parents that you have their best interests at heart. Being authentic goes a long way with Gen Z.
   
• A younger credit union – What’s the average age of your board members and staff? We’re not saying fill your board with 10-year-olds, but a member or two from Gen Y is a good place to start. And maybe think of having qualified Gen Y employees in management positions, not just as tellers, to make your branches more youth-friendly.
   
• Strengthen online presence – As with Gen Y, Gen Z does everything online and/or mobile. So make it easy for them to share – they were born to! Encourage social media interaction, good or bad. Just make sure all connections are real and yes, authentic. And make sure your website it mobile-optimized – because that’s how most of Gen Z is going to view it.
   
• Think student-run – What better place to start than where Gen Z spends their days – at school? Student-run credit unions get the kids involved and can educate them about credit unions and finances all at the same time.

Make it your credit union’s goal to be this generation’s first account, first car loan, first credit card and everything in between. You’ll be firmly in place as their primary financial institution when they go away to college and need a student loan or graduate and need their first mortgage. It all starts with the first step of marketing to them through their parents while they’re still young and at home.

Related Services:  Youth Campaigns, Growing Members Youth Sites, Social Media, Financial Calculators, FRC, Marketing Campaigns, Mobile Websites, SaveUp 

Credit Unions Supporting and Sharing Biz Kid$

As part of the Invest in America sponsorship of the Biz Kid$ PBS television show, CU Solutions Group has secured several Biz Kid$ episodes and placed them on a newly created Biz Kid$ channel in CUBE TV. Biz Kid$ educates children 6 to 12 about financial literacy, fiscal and social responsibility, work readiness, and entrepreneurship in a fun and memorable way.

We encourage any credit unions who participate in Invest in America and/or those who directly supported the Biz Kid$ program to link to this channel from their website to share these shows with their members and leverage the sponsorship.

Please include this link on your website: http://bizkids.cubetvonline.com.

Click here to learn more about Invest in America. 

Energize Your Credit Union Members' Online Experience

Just about every company and product has its own website. And by now, you know the basics—make your site easy to navigate and user-friendly, include a call to action on every page where a product or service is described, and use online applications and contact forms.

Now What?
Now it’s time to add that “little extra something” to your website—something that gets your members coming back time and again. Use one or all of these website enhancements to energize your site:

Video
Sure, you can put videos on YouTube at no cost. But do you really want members navigating away from your website? The best alternative is to place the videos on your site. The videos can be:

• Instructional – Financial literacy is a must at any age. Place videos that cover different topics and appeal to members of all ages.
• Community-oriented – Share a brief video of your credit union staff participating in community events.
• Promotional – Promote a product or service—or simply post the video of your CEO’s appearance on the local TV news to discuss Bank Transfer Day.
• Informative – Keep members informed about the issues facing credit unions—such as proposed legislation that has challenged credit unions’ tax-exempt status in the past.
• Motivational – Want to do more than keep members informed? Use a video to encourage them to write to their legislators or take other actions.

Blog
A blog invites interaction, which in turn invites people to return to your site. Keep the topics relevant and helpful—and ask visitors to comment. Consider, too, a guest blog. If your credit union has a relationship with a financial planner, invite that person to post a blog. Also, look to your membership. Perhaps a member can share his or her experience with solving a budgeting problem.

(Tip: Use one of your website pages for the blog. If you’re using a “page commenting” feature, visitors can use that to post comments.)

Podcast
Podcasts aren’t yesterday’s news. They’re an efficient way to provide snippets of information to members who are on the go—and find it easier to listen to a message rather than watch one. Use podcasts to provide financial tips and messages from your CEO.

Keep it Going
Once you’ve added one or more of these features, don’t stop there. Talk to your members or survey them—and learn what other features would make your site more valuable. Because when it comes down to it, members are the reason you have a website.

 
Related products: CUBE TV, Podcasts, Web Development