Millennials, which have been called the most disruptive generation in history, have already transformed the retail, social media and technology sectors. They've also put pressure on financial institutions, because they expect to bank on their terms.
The Census Bureau projected the millennial population, which totaled 74.8 million in 2014, will reach more than 75.3 million in 2015. That means they'll outnumber the baby boomers – the next largest generation.
Here are seven New Year's resolutions credit unions should make to better engage with millennials.
1. Make your messaging more appealing.
More than 70% of America's millennials would rather go to the dentist than listen to what their financial institution has to say. Plus, they are more interested in hearing from non-traditional financial services firms, according to the Millennial Disruption Index, a survey of 10,000 people from the Viacom unit Scratch.
2. Pay attention to their use of cash.
Many U.S. millennials are ready to give up cash completely. Forty percent would stop using cash if their credit or debit card could replace all forms of cash transactions, according to a BI Intelligence study of 1,500 millennials.
3. Push mobile capture.
A Mitek/Zogby study revealed millennials want to digitize all commerce through their mobile device cameras. According to the study, almost 70% would rather use mobile capture than manually type information into their smartphone, and 28% want to enroll in services by snapping a picture of their driver's license. Banking is the top industry in which that age group wants to see more mobile capture functionality (40%), Mitek/Zogby said.
4. Give them digital payment choices.
A CCG Catalyst survey found this group uses digital banking to pay bills (online, 46%), send money (online, 44%), and make deposits (mobile, 39%). The Mitek/Zogby study said 86% of respondents made purchases and conducted transactions from their mobile phones, and 42% decided where to spend their money or switched companies based on what the organization allowed users to accomplish on a mobile device.
5. Help ease their financial pain.
A Bank of America/USA Today poll showed 41% of millennials experience chronic stress about money, especially when it comes to saving. In a Wells Fargo/Ipsos survey, millennials expressed apprehension about their credit scores, debt levels and living paycheck-to-paycheck.
6. Get app-y.
Financial institutions have work to do when it comes to promoting their apps. Ninety-one percent of millennial respondents in a CCG Catalyst survey said they favor PayPal's app over financial institution apps. And according to the Millennial Disruption Index, 73% of this cohort would be more excited about a new financial services offering from Google, Amazon, Apple, Square or PayPal than their own financial institution.
7. Don't let them check out.
Contrary to common belief about their use of non-banking channels, millennials still expect to see traditional institutions at the center of their financial picture, per CCG Catalyst survey respondents. Fifty-nine percent banks at a bank, 11% at a credit union and 19% at both. Less than 4% use online banking only. Yet, less than half have checkbooks, and 42% either don't have a checkbook or have one that they've never used.
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Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
