RALEIGH, N.C.–One student who is a Wells Fargo customer has a pretty good understanding of how credit unions work—almost. But the student does know what she’s looking for: a little honesty.
The student’s perspective is part of a series of articles focused on what college students really think and know about credit unions and finance? CUToday.info has partnered with Zogo, a fintech founded by undergraduate students at Duke University that is focused on innovative ways to use mobile first to improve financial literacy, to feature real interviews with college students.
Some of the answers as revealed in a new series of interviews, which were conducted by Zogo will be eye-opening to many in credit unions, and will likely send decision-makers back to the digital drawing board if they want to capture the next generation of members.
The introduction to the series, including the first student interview, can be found here. Other interviews can be found here, here, here, here and here.
Here is a look at what the latest student to be featured in this series had to say:
Name: Ellie Moran
Age: 19
Major: Anthropology and Cultural Studies
Hometown: Asheville, N.C.
Grade: Sophomore at University of North Carolina
Fun Fact:The circus tried to recruit her for her unicycling skills
Zogo: How did you learn about personal finance in high school?
Moran:My dad is a financial advisor for Wells Fargo.
Zogo: What do you remember from that experience?
Moran:Save, don’t go into debt. And you should always have $1,000 in your bank account, it should never go below that.
Zogo: How can a person increase their credit score?
Moran:By using their credit card often and paying the balance regularly.
Zogo: What is an insurance deductible?
Moran:It is an amount you have to pay before the insurance will cover the rest of the cost.
Zogo:Can you describe banks to me?
Moran:They’re places you can go to get loans or invest your money in different accounts that earn interest.
Ellie Moran
Zogo: Who do you bank with?
Moran:Wells Fargo.
Zogo: What is your relationship with your banks?
Moran:I just use online banking; I don’t really go in at all. They’re not really on my radar, I don’t interact with them that much. I go to my dad if I have any questions.
Zogo:Do you feel loyal to your bank?
Moran:Not particularly. I feel loyal to my dad.
Zogo:Can you describe credit unions to me?
Moran:It’s a group of people who pool their money and act as a bank, but it’s not an institution.
Zogo: Credit unions are like banks, but they’re non-profit. When you open an account at a credit union, you become a member and own part of the credit union. So while traditional banks are run by shareholders whose goal is to maximize profits, credit unions return all profits to their members in the form of reduced fees, higher savings rates and lower loan rates.
After hearing this description of credit unions, how has your attitude towards credit unions changed?
Moran:It’s more favorable!
Zogo: Why are you with a bank and not a credit union?
Moran:Because my dad did all the work for me.
Zogo: What are some things that a financial institution can do to make you feel loyal towards them?
Moran:Good customer service. And honesty about how their rates compare to other banks and credit unions.
