RALEIGH, N.C.–The idea of a financial institution that shares profits with its members has appeal to one college student, even if that same student knows very little about credit unions.
The student’s understanding of finance, credit unions and more is featured in this, the fourth in a series, that examines college students understanding of a number of financial issues. 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 and here.
Name: Rohan Arora
Age: 21
Hometown: Chapel Hill, N.C.
Major: Computer Science and Biology
Grade: Senior at UNC
Fun Fact: Likes to ski
Zogo: How did you learn about personal finance in high school?
Arora:I don’t think I did.
Zogo: What do you know about personal finance?
Arora:I do a lot of investing and stuff. I use Robinhood, the app, for investing. I invest in ETFs, which are basically like instead of investing in stocks, it’s basically like a bunch of companies. It basically diversifies it so you just purchase one stock and it’s already diversified for you so you don’t have to choose different stocks in your portfolio.
Zogo: How can a person increase their credit score?
Arora:Purchase more and also pay off your bills at the end of the month.
Rohan Arora
Zogo: What is an insurance deductible?
Arora:It’s what you have to pay if you’re filing a claim or something. Like what you have to pay in order to get repairs or whatever the insurance is covering. If you have an accident and you need to get something repaired they’ll usually have a deductible of like one hundred and fifty bucks or something and they’ll cover the rest.
Zogo: Who do you bank with?
Arora:Suntrust.
Zogo: What is your relationship with your bank?
Arora:I have a savings and checking account with them.
Zogo:Do you have a favorable or unfavorable opinion of them?
Arora:They’re fine. I mean, I don’t know. I just use their app. It’s OK.
Zogo: Do you feel loyal to your bank?
Arora: No. It’s because my dad had it set up with Suntrust, so I have that because of him.
Zogo: Can you describe credit unions to me?
Arora:Umm… I feel like you can get like a debit card with them or probably a credit card, too. And you can have a savings account. But I’m not really sure past that. I feel like they’re smaller [than banks] maybe?
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?
Arora: I think it sounds like a better alternative to normal banks. I know like the interest rates for your savings is pretty low, so I don’t know if that’s much different. Yeah, if they’re giving better loans and stuff or better details on that I feel like it’s a good idea.
Zogo: What are some things that a financial institution can do to make you feel loyal towards them?
Arora:I guess share any profit they make with the members. And just make it really convenient with whatever software they have to access everything.
