Did you know millennials have embraced credit unions? Why is that important? Millennials are the largest generation in our history and with so many in this age range, the banking industry is taking a close look at what this group of young people are looking for when picking a financial institution. Even though we know millennials love their gourmet pizza, buying cars online, and free Wi-Fi, there's one thing they don't like and that is banks.
The wants and needs of this generation are all very different from past generations and credit unions have invested the time to truly understand them. According to a survey from the FDIC, 30% of this generation doesn't have a bank account because they don't trust "banks." An additional 25% think the fees are way too high. So credit unions have done a wonderful job promoting themselves as a great alternative for young people with these concerns. Here are a few reasons why millennials have embraced these types of financial institutions.
Enhanced customer service
Credit unions have a reputation of being more customer-friendly than traditional banks. Because they are generally a little smaller in size, they are able to deal with their members on a more personal level.
In a 2018 Credit Union checking survey, it was discovered that 82% of credit unions offer free checking, while only 38% of banks offer free checking. These types of accounts don't have any transaction requirements to avoid paying a monthly fee. They also charge lower overdraft and ATM fees.
Lower interest rates
Most of the time they have better rates on savings and investment accounts. More than any past generation, millennials keep more of their resources in cash, which means they need a safe place to put their cash where it's safe from market variations and get reasonable rates. Keep in mind that credit unions not only give better rates on savings accounts but they also offer lower rates on credit cards and loans.
Millennials are looking to become more financially literate. Credit unions are eager to educate members to help them make good financial decisions. They often hold seminars on a variety of topics to help members control their finances. These types of educational opportunities are often free and are generally not a pitch for any specific financial product.
They usually have vigorous social responsibility programs that help the communities where they reside. This is very attractive to millennials.
Easy to work with
Traditional banks can be perceived as stodgy, while credit unions are known for excellent customer service and an "easy to do business with" mentality. In order to keep up with the technology that is expected by the younger generation, they are offering streamlined online and mobile banking experiences that were previously associated with the bigger more established financial institutions.
For the most part, millennials have a huge amount of school loan debt. They aren't buying homes or cars. They are waiting to have families and they are more interested in community service than a large paycheck. Most of all, they are shying away from "corporate America." That's why Credit Unions meet their needs. They are not-for-profit, community-centric institutions that resonate with the youngsters that are trying to make this world a better place.
If allU.S. has one thing in common with millennials, it's that we're invested in improving the quality of life within our community. allU.S. will continue to behave differently from investor-owned financial institutions, and that difference in behavior will produce substantial benefits—both to our members and to the economy as a whole. Visit allU.S. Credit Union, Positively Different!© 2019 Patrick Redo
The views and opinions expressed in these articles do not necessarily reflect those of College Central Network, Inc. or its affiliates. Reference to any company, organization, product, or service does not constitute endorsement by College Central Network, Inc., its affiliates or associated companies. The information provided is not intended to replace the advice or guidance of your legal, financial, or medical professional.