MADISON, Wis. (9/21/09)--Credit unions may be interested in some new survey results outlining traits Generation Y members possess to more effectively serve this growing demographic of 75 million members. Gen Y is new to banking, but has high expectations. A survey by Maritz indicated that Gen Y can be less patient, tolerant and harder to please than their older counterparts (Teller Vision
Oct. 1). According to Deloitte, members of Gen Y also are:
* Self-directed and resourceful in researching financial services, but seek recommendations from family and friends. They often are skeptical of traditional advertising; * Motivated and concerned with receiving products and services at a competitive price; * Tech-savvy and view technology as an extension of themselves. They use smartphones, blogs, Facebook, Twitter, Second Life, YouTube and Flickr.
Fraud protection is important to Gen Y, Deloitte said. They want to be notified of fraud immediately on their cell phones, and are most likely to leave a financial institution if a fraud occurs. Financial institutions may have unstable relationships with younger consumers because they haven’t settled into a financial pattern yet, said Thad Peterson, Maritz division vice president of sector strategy and solutions. He suggested financial institutions focus on three concepts when attracting Gen Y:
* Locational convenience to include online and mobile banking; * Appropriate customer experience; and * Products and services that give young people roots--such as providing incentives for online bill pay and debit rewards programs.
“It’s critical for [financial institutions] to stay ahead of the curve and build good relations with younger customers,” Peterson said. “After all, they’re the future.”