MADISON, Wis. (11/17/10)--Attracting more Gen Y members is more than a marketing strategy for credit unions, it’s a matter of survival, according to a just-published report from the Filene Research Institute. While older consumers continue to be loyal to credit unions and small banks, by 2020 Gen Y will dominate the work force, comprising 40% of all workers--virtually all of them with borrowing needs, according to the 1,400-response survey, “Big, Small or Online? Young Adults’ Evolving Financial Presence.” Among the survey findings:
* 22% of Gen Y use an online bank as their primary financial institution; * 40% say a recommendation from friends or family played a role in their opening an account; * Gen Y places a premium on account features and interest rates--in the immediate term; and * Online bank customers say they have the best combination of the features and fees and that online services suits them best. The strength of this sentiment shows that “personal” service really means “suitable” service, said Filene. In the case of Gen Y, that service is often offered online.
Study author Rob Rubin, founder and CEO of Facilitas--the organization behind findabetterbank.com and BankSwitcher--said that the key to remaining viable in the long-term is to make Gen Y their No. 1 focus. The best way to do that is to make your online presence a priority. “Take honest stock of the competition from online banks and big banks alike,” Rubin said. “Only then can you double down on the services that will make your financial institutions the one of choice among Gen Y.” To read the study, use the link.