For retailers and families alike, August/September is traditionally known as “back to school” time. With parents sending their kids off to college or sending their college graduates across the country for new jobs, now is the time to communicate to them that they can take their credit union membership with them. Reminding your members how you are able to help them with this transition and how they can access all of your services remotely means they don’t have to find a new financial institution.College freshmen are inundated with credit card offers. Banks pay millions of dollars each fall to nab freshmen when they first hit campus. Nip this in the bud and promote your student credit cards to young adults before they go to college. According to a study by the Filene Research Institute entitled The First Credit Card, one in three high school seniors has a credit card and 56 percent of undergraduates say they got their first card by age 18. And the average consumer relationship with a credit card lasts 15 years. Why shouldn’t it be your credit union’s credit card?
Credit unions are already uniquely positioned to appeal to this demographic, thanks to their not-for-profit, member owned dynamic which aligns with these generations’ penchant for altruism. Be sure to reinforce your credit union’s mission of putting people first and its member-friendly practices when it comes to lower fees, great rates and responsible lending practices to your young adult members.
If you’re thinking through your products and services that are targeted to this audience and find them falling short, it may be time for your credit union to sit back and evaluate what you have to offer young adult members. How robust is your online banking? (See table below.) Do you offer a mobile website to meet them where they gather information – on their mobile devices? Do you offer online applications and facilitate remote interaction with member service representatives? Do your younger members understand what the CO-OP Network is (if you’re part of it) and what they can do at a credit union service center? All of these considerations factor heavily into the decision for young adults to take you with them when they go to college or potentially move out of state after college to find a job.
Under 30
|
30-39
|
40 +
| |
Percent logging into
online banking 4+ times/mo. |
84
|
85
|
73
|
Percent using mobile
banking 1+ times/mo. |
30
|
29
|
13
|
Percent never visiting
a branch |
39
|
36
|
28
|
From Filene Research Institute Publication #221
To ensure your efforts to attract younger members are effective, consider creating a youth advisory committee, a focus group or survey to find out what they really want and the best way to interact with them. Further their level of trust with you by offering financial education or financial independence seminars. And consider offering student loans, planning tools, savings programs and carefully researched loyalty programs for added appeal. Now is the perfect time to start reaching out to your younger members and show them what your credit union is all about.
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