By Kevin Foster-Keddie,
Credit union executives agree they need to attract Millennials to sustain long-term growth but struggle to find ways to actually do so.
Innovative credit unions are doing three things to reach out and more effectively serve Millennials: creating a seamless omnichannel experience, embracing constant evolution, and taking a strong stance on social issues.
Creating more integrated, omnichannel experiences that fully utilize credit unions’ mobile apps is essential to engaging Millennials. Good OmniChannel experiences enable members to engage with their credit unions through multiple channels, such as at the ATM, in the branch or through a mobile app. Whether inquiring about an account balance through face-to-face interactions in a branch, at an ATM or using a credit union’s app, Millennials crave member services that promote better access to their funds and consistency throughout their experiences. Millennials expect instant gratification, so credit unions should focus on providing instant access to funds across all channels, whether through a mobile deposit or a short-term loan, which are immediately updated in the core system and available to be viewed in real-time.
When engaging Millennials, credit unions should focus on constant innovation to make sure all the financial needs of member are met – not just the current needs, but the emerging needs that will be mainstream in the near future. Credit unions need to anticipate the needs of all members, but particularly Millennials, who have no tolerance for outdated financial products and services. One example of this type of forward thinking is to begin researching new payment technologies to replace the physical need for a credit or debit card. Good member service for Millennials and all credit union members is a moving target. Relying on yesterday’s solution alienates your credit union from generation Y and prevents long-term growth.
Desire to Make the World a Better Place
Millennials are more attracted to organizations that try to make the world a better place. As a result, credit unions should consider taking a stand on certain social issues that are important to this target audience. Millennials are so passionate about this that they have been known to pay extra for products or services to support a moral cause, as shown by the popularity of TOMS shoes since 2006. In this case, the shoe company provides free shoes, medical services or access to clean water to people in the developing world with the profits from every sale. To take a stance on social issues, credit unions can sponsor volunteer events to provide relief for an issue troubling the community or even match donations for a local charity during a set period of time.
In order to work more effectively with Millennials, credit unions should focus on a more integrated, omnichannel experience; providing constant innovation and taking a stance on social issues. Without attracting more Millennials, credit unions will not be able to grow. Currently, the financial system is still geared towards the needs of older members, but in the very near future it will be impossible to be successful without understanding what Millennials want from their credit unions.
Kevin Foster-Keddie is the president and CEO of Washington State Employees Credit Union, vice chairman on CU advisory council to the CFPB, and chairman of Q-Cash Financial, a provider of an automated, cloud-based, mobile lending platform for financial institutions. For more information, please visit Q-Cash.com