dis-talkw5

guest opinion

Three Ways CUs are Reaching Gen Y

( c )ompetition is fierce between banks and credit unions for Gen Y consumers

born between the early 1980s and 2000s and, it is getting more so as new services, products and tech- nologies seem to change the mar- ket environment daily.

How can credit unions take advantage of their traditional strengths to attract Gen Y mem- bers? At least three credit unions

– the $12 billion BECU in Tukwi-

home mortgages.

“I think younger people find credit union products and servic- es, as well as the credit union story, more relevant than

other lending institu- tions,” Black said. “We are large enough to be solid but not too large, and I think the young- er generation likes the fact that we are a more active part of the community that really

as being tech savvy is sensitivity to how social media vehicles are used, Black said. BECU does not to use its Facebook page for the

hard sell in deference to young people who see Facebook and other socially orient- ed outlets as commu- nity and friendship sharing sites.

“We use our site for community outreach and in some cases ad-

Jr. Rangers for members 12 years and under and Jr. Partners for ages 13-17. These accounts offer divi- dends, savings milestone gifts, fun financial stories and educational activities through newsletters and access to CUNA’s youth-targeted Googolplex websites.

Robin McKenzie, Redwood se- nior vice president of marketing and communications, said about 80% of the credit union’s youth account members continue to be members of Redwood after they

“Gen Y consumers are extremely important to us because they rep- resent the future of our member- ship,” said Laura Sterling, assis- tant vice president of marketing at Georgia’s Own.

Sterling said its Gen Y popula- tion is in the 18-32 age range, cur- rently has about 32,000 members in that segment and is also one of the credit union’s fastest growing membership groups, growing by 19% over the past two years.

A major factor in that growth is

la, Wash., $2.2 billion Redwood Credit Union in Santa Rosa, Ca- lif., and the $1.7 billion Georgia’s Own Credit Union in Atlanta – are successfully reaching out to young people with programs tailored to their needs and lifestyle.

cares for people.”

The credit union is planning to launch a major initiative to es- tablish what he calls a responsive, multi- channel digital pres- ence with key ele-

Samantha Paxson

is vice president of marketing at CO-OP Financial Services.

ContaCt

800-782-9042, ext. 3450

or Samantha.paxson@ co-opfs.org

vocacy for the public good, such as donat- ing to charitable or- ganizations,” he said.

Redwood CU

The credit union said it is focusing on at-

turn 18.

The cooperative also reaches out to the younger generation through a free financial workshop for Sonoma County high school students, sponsored in partner- ship with the schools. The four- day, 16-hour Banking & Finance

its “i[x] program,” which was cre- ated to attract members in the 14-25 age range and is accessed online via a blog-based website (www.doyouix.com).The website is designed to help young people with tailored assistance for setting up a checking or savings account,

BECU

ments to include an

tracting members at

Academy is based on a program

beginning investing or securing a

( Data and Analytics Marketing Automation Email Marketing Social Media Content Management ) ( 61% 60% 58% 57% 57% ) ( Top 10 Consumer “Loyalty” Reasons ) ( . ) ( Digital Banking Era Here? Consumer Perspective ) ( Good number of branches Good online banking services Good branch service Low or reasonable rates/fees Stability of financial institution Trust FI acts in best interest Too much hassle to switch Good ATM network Personalized service Haven’t noticed better options )Stephen Black, vice president of marketing, said that younger members make up their largest segment for new auto loans and

upgrade of BECU’s website expe- rience and mobile connectivity as well as a more robust social media presence. But just as important

the very young end of the Gen Y spectrum. Redwood CU encour- ages money management edu- cation with its Youth Accounts:

created by the National Endow- ment for Financial Education.

Georgia’s Own Credit Union

new car loan. Membership in the program has grown 35% among the 14-25 year age group since its debut in 2009, Sterling said. n

( . ) ( 67% ) ( 64% ) ( 61% ) ( . . . . ) ( 38% ) ( expect to use mobile 37% banking more often with branches coming ) ( a close second ) ( 43% 80% ) ( Engagement Rate (open, clicks) ) ( ROI ) ( 50% Increase in mobile banking since 2012 ) ( 41% Customers prefer to visit branch ) ( The New Role of Banking: ) ( Value Aggregators: distinctive portfolio of products & services within a broader ecosystem of services providers Consumers Choose Other Providers than Primary Bank for: ) ( 82% ) ( Advisors: continuously leveraging analytics engines/algorithms to gain deep customer knowledge to personalize their advice ) ( 6% ) ( 30% ) ( 8% )

( inFographiC )

( TRENDS REVEAL MARKETING PRIORITIES )

( Marketing Budget Fine Tuning Increased Spending on: ) ( Financial Services Marketing Stats: )

( Top Three Marketing Success Metrics: ) ( view online banking as single most important area for bank investment )

( use online banking at least once per month Conversion Rate (sales directly attributed to digital marketing campaigns) )

( Consumers Purchasing Products Online: 2012 vs. 2013 ) ( Brokerage accounts Auto Loans )

( Data Source: ExactTarget 2014 State of Marketing Report; Accenture: Banking 2020 Thought Leadership Series A Critical Balancing Act: U.S. Retail Banking in the Digital Era )

( Home Mortgages 60% ) ( Home Equity Loan Personal Loan Mortgage Auto Loan ) ( 68% ) ( 15% ) ( Credit Cards ) ( 53% ) ( 11% ) ( 24% 25% 21% ) ( Facilitators: accessing cross-industry products, services through support with “hidden” partners and leveraging tools )CUT_2-26-14.indd 8 2/20/14 2:58 PM

Copyright of Credit Union Times is the property of Summit Business Media and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.