Did you know that credit unions are popular among millennials? Why is this significant? The largest generation in our history is the millennial generation, and with so many people in this age group, the banking industry is closely examining what this young group looks for in a financial institution.
We are aware that gourmet pizza, online car purchases, and free Wi-Fi are popular among millennials; however, banks are not popular among them.
Credit unions have taken the time to truly comprehend the wants and needs of this generation, which are vastly distinct from those of previous generations. 30% of this generation do not have a bank account because they do not trust “banks,” according to an FDIC survey.
Another 25% believe that the charges are way too high. As a result, credit unions have done an excellent job of promoting themselves as a good alternative for young people who are concerned about these issues. Millennials have embraced these kinds of financial institutions for the following reasons:
Enhanced Customer Service
Credit unions are known for being more accommodating to customers than conventional banks. They can interact with their members on a more personal level because they are typically a little smaller.
Lower Fees
According to a 2018 Credit Union Checking Survey, 82% of credit unions provide free checking. whereas only 38% of banks provide free checking accounts. To avoid paying a monthly fee, these kinds of accounts do not have any transaction requirements. Additionally, their ATM and overdraft fees are lower.
They typically offer better interest rates on savings and investment accounts. Millennials keep more cash than any other generation before them. Because of this, they need a safe place to keep their cash away from market fluctuations and at reasonable interest rates. Keep in mind that in addition to providing better rates for savings accounts, they also provide lower rates for loans and credit cards.
Financial Education
Millennials are interested in improving their financial literacy. Credit unions are eager to educate their members in order to assist them in making sound financial choices. To assist members in controlling their finances, they frequently hold seminars on a variety of subjects. Most of the time, these kinds of educational opportunities are free, and they usually do not promote any particular financial product.
Usually, they have a lot of social responsibility programs that help the communities in which they live. Millennials find this to be extremely appealing.
Easy to Work With
While credit unions are renowned for their excellent customer service and “easy to do business with” mentality, traditional banks can be viewed as stodgy. They are now providing simplified online and mobile banking experiences that were previously associated with the larger, more established financial institutions in order to keep up with the technology that is expected by the younger generation.
Millennials have a lot of debt from school loans for the most part. They are not purchasing cars or homes. They are waiting to start a family, so community service is more important to them than a big paycheck. They are avoiding “corporate America” most of all.
Because of this, Credit Unions meet their requirements. They are community-focused, non-profit organizations that resonate with young people who are working to improve the world.
If there is one thing that all Americans and millennials have in common, it is our commitment to enhancing the quality of life in our local communities. AllU.S. will continue to act differently from investor-owned financial institutions, which will benefit our members and the economy as a whole in significant ways. Visit the Positively Different allU.S. Credit Union!
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