Frosted, glazed or plain
Hardly a month goes by without there being another article written about the need for credit unions to focus on Generation Y, the young people of our country who will forge its future.
Generation Y is indeed an important group. If credit unions are to grow and prosper, then they continually need new members who will access all of the offered services, including loans for automobiles, homes and other purchases.
However, just as it is important to grow, it is equally as important for a credit union to maintain its base. You must make sure the foundation upon which the credit union is built remains strong, sturdy and free of any cracks. If you should allow that foundation to deteriorate, adding new bricks to the structure would only weaken it. Your base must always remain strong.
I recently read where one individual acknowledged the role of Baby Boomers as helping credit unions grow, but then discounted their importance going forward. Because they no longer borrow in great numbers, they are done.
While it may be true that Baby Boomers are borrowing less, they are far from done. Consider the fact that many of the deposits held by credit unions, the deposits that allow you to continue to make loans, have been put there by the Baby Boomers.
The Boomers are now the savers. They are the ones who have their Social Security checks, retirement benefits and dividend checks deposited directly into your credit union. Their savings will likely continue to get larger faster, increasing the size of your credit union and enabling it to do more things for its members.
Baby Boomers are far from done. They will continue to influence the policy of the country, including the role of financial institutions, for decades to come.
I recently had breakfast with a leader of a large financial holding company that owns dozens of community banks. All the banks the company owns have very smartly kept the name of the communities they are in. Unlike others, they have not adopted a corporate name. It’s a great marketing idea. People like to walk into a place that sounds and feels like their community.
The individual told me a story of the new comptroller hired by the company who found a line item where thousands of dollars had been spent on doughnuts. Outraged, he struck it from the budget as a frivolous expense. Within one week, the line item was back.
Why? Well, he did not know that those doughnuts were for the banks’ big depositors: the Millionaires’ Club, as some call them, or as we better know many of them, the Baby Boomers. These are the customers who regularly come into the banks just to stop by, say hello, have a cup of coffee and eat a doughnut.
Credit unions must continually look for ways to attract new younger members. Generation Y programs are a must for those credit unions who want to grow, but they must never forget who brought them to the dance. Many of them have their own Millionaires’ Club members. They are the ones you never want to lose.
A doughnut is a small price to pay to keep your credit union’s foundation strong. When you welcome someone to your credit union, will it be with a frosted, glazed or plain doughnut?
