RALEIGH, N.C.–One student whose relatively savvy about his finances admits to being pretty fuzzy when it comes to credit unions in this interview, the third in a series of stories featuring interviews with college students.
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 and here.
Below is the third student featured in the series:
Name: Mercer Brady
Age: 21
Hometown: Greensboro, N.C.
Major: History and Contemporary European Studies
Grade: Senior at University of North Carolina
Fun Fact: Was bucked off a camel
Zogo:How did you learn about personal finance in high school?
Brady: I learned very little about personal finance in high school. It really wasn’t a priority at my high school, they were more concerned about us getting into college rather learning how to afford college.
Zogo: What do you know about personal finance?
Brady: I learned I must get a 401(k) to save for retirement. That’s very important. I remember going to a lecture about financial literacy and that’s basically all I got out of it.
Zogo:How can a person increase their credit score?
Brady: By paying off credit cards on time or early.
Mercer Brady
Zogo: What is an insurance deductible?
Brady: I think it means if you don’t have any accidents or any problems with your insurance, they’ll make you pay less over time. Maybe that’s wrong?
Zogo: Can you describe banks to me?
Mercer: My notion of a bank is basically they take your money and don’t keep it for you. They spend it and invest it. So that’s why if a bank fails it’s really bad because everyone rushes to get their money but the bank doesn’t actually still have all their money.
Zogo: Who do you bank with?
Mercer: First Citizens.
Zogo: What is your relationship with your bank?
Brady: It’s very minimal. I have like one credit card and I pay it off. It’s very transactional.
Zogo: Do you have a favorable or unfavorable opinion of them?
Brady: I’m fine with them. I’ve never gotten in any trouble with them so I don’t know what they’re like when you get in trouble with them. In terms of just going in there with my piggy bank and putting money in my account, they’ve always been very friendly.
Zogo: Do you feel loyal to your bank?
Mercer: Not particularly.
Zogo: Can you describe credit unions to me?
Brady: Credit unions? Umm, I honestly could say nothing about credit unions with any authority or confidence.
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?
Brady: I’m sure in theory that they’re great, and I like the idea of a bank where you’re more valued. At the same time, I’m sure there’s a reason that not everyone is doing it. I just don’t know what that reason is.
Zogo: What are some things that a financial institution can do to make you feel loyal towards them?
Brady: If you’ve been really loyal and always paid on time, maybe leniency or warnings for offenses. Like if you did something wrong, maybe a bit of compassion. I think loyalty should be rewarded.
