Credit unions are struggling to uncover what Generation Y wants and needs, and the Filene Research Institute has released a report that can help.
The report, "Attracting Young Adults: What Do We Know About Their Use of Financial Institutions and Payment Behaviors?" is a great resource for credit unions. Reading through it even helped me recognize some of my own requirements when it comes to financial institutions.
The first part of the study looks at what financial institutions young adults use and why. It's no secret that Generation Y values convenience when it comes to selecting a financial institution and in most other aspects of life. Many credit unions think this means they need to concentrate on electronic services, but one thing I found interesting was that the report showed a convenient location is also highly valued among young adults when selecting a financial institution.
Recommended For You
In talking with Ben Rogers, director of Filene's 30 Under 30 group and the new CU Tomorrow project, he said that when credit unions think of young adults they think electronic, and what many fail to realize is that electronic services need to be in addition to a convenient location. It can't just be one or the other.
Even I think of my generation as very tech savvy, but when I was looking to change financial institutions, I realized that this rings completely true. Young adults want it all. We want new technological services, and we want convenient branch offices, which was part of what made it so hard for me to find a credit union. I not only wanted online banking and electronic services, but I also wanted a branch that I could walk to from my apartment.
The second part of the study examines payment behaviors in young adults, information I think can be extremely useful to credit unions. If you know how we select our payment methods and what payment methods we use, it can help you gain a better understanding of what products and services to market to us.
The list of payments that Filene found was exactly the kinds of payment methods I use. And despite what many may think, young adults use a variety of payment methods.
The study said that young adults use checks for mortgages, rent, utilities, taxes and insurance premiums. They use cash for personal care, entertainment and dining out. Credit cards are used mostly for clothing and car repairs and service. Debit cards are used to purchase groceries and gasoline.
Many people think that Generation Y is a card generation that relies on debit and credit cards. The study found that only 6% of those surveyed never use cash, and 12% said they never use checks.
Generation Y is a fickle generation, but we're also providing you many opportunities to serve us. There's not just one product you can offer that will win Generation Y, there is the opportunity to offer many products together that can gain a generation of members.
–Comments? E-mail [email protected]
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
