Four ways to get your credit union younger

by: Mark Arnold

Almost every credit union wants to get younger—to reduce the average age of its consumers. The average age of membership at credit unions is about 48, while the average age of most community banks is not much lower.

Strategically speaking, having younger consumers also means more loan growth. Plus, the more young people in your financial institution could potentially translate into a lifetime of future business. While Generation Y balances may not be large, their profitability probably is.

So how does your bank or credit union get younger? It’s start with change. You cannot continue doing business the same way. While you can’t turn your institution into Logan’s Run, where you kill everyone over 30 (or stop doing business with them when they turn 30), the reality is this new generation has new banking demands.

Here are the four changes your credit union or bank must take to get younger:

  • Change your focus. Stop focusing your marketing efforts to reach older Boomers. We financial institutions talk a good game about getting younger but then we still try and serve people of all ages. If you are serious about reaching the Millenial generation then your strategic plan, your marketing plan and your marketing budget will reflect that focus. Here’s a hint: drop traditional marketing methods and replace them with digital.
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