Millennials, hipsters, & finances, oh my!

Lazy, narcissistic, coddled, and delusional have been a few adjectives to describe the Millennial Generation. But other, more positive, characteristics include confident, self-expressive, upbeat, and receptive to new ideas and ways of living. Born roughly between 1980 and 2000, this generation is now in their first years of the job or finishing their college classes. As this generation becomes more predominate in the workforce, credit unions will have an opportunity to capture their growing income and financial needs. However, this generation might need different incentives other than low mortgage rates and free checking accounts.

Millennials, or Generation Y, grew-up in a society where eco-consciousness was becoming the norm, technology was readily available, and relationships were no longer hindered by distance. As the world gets smaller, this generation is looking for ways of making an impact on society through their careers, purchases and interaction with others. Many companies have taken these consumer trends and ingrained them in their business model. TOMS shoes is a frequent example of a brand that emulates the ideology of goods that purpose a stronger purpose. Other brands include Warby Parker, People Water, and OAK.

Businesses large and small have found a niche market creating service products that allow for the consumer to make his or her own choices. The millennial generation is seeking creation, design and interaction, so products that allow them to create their own destiny are becoming sought after. The downfall here is while Millennials are off staying organized with Evernote, hailing cabs with Uber, and selling custom iPad covers through Etsy, USA Today reports that “the majority of young people in the United States have poor financial literacy.”

As a credit union, a niche market is opening to attract new accounts. The NCUA provides a marketing guide for credit unions. Inside they suggest several tips to boost financial literacy:

  • Conduct a member survey to determine member and potential member needs
  • Provide consumer driven material that educates members and potential members
  • Create a new member brochure to advertise products and services

Providing the financial education is not the difficult part. The difficult part is figuring out how to deliver the material so that it is utilized and in turn, profitable for the credit union. While the debate continues whether or not to utilize resources to attract a younger member base, credit unions might find relief in utilizing some of the very appeals that characterize Millennials. Here are three examples of marketing campaigns to capture the Millennial Generation membership:

1.     Provide a Mobile Banking App:

The Federal Reserve released a report in March 2013 reviewing Consumers and Mobile Financial Services . The study highlights the widespread use of mobile Internet access and the growing interest in mobile banking. The survey, concluded in 2012, reported that 52% of mobile phones are smartphones with 48% of smartphone owners using a mobile banking app. The most common use was to check account balances and recent transactions, but transferring money between accounts and making deposits were close to follow. As these services become more natural and robust for smartphone users, the survey expects a 10% increase in mobile banking every year.

2.     Offer a Rewards Program:

The social and eco-conscious interest shown by Millennials could be routed through a rewards program. Buzz Points’ rewards program rewards cardholders for shopping at local businesses. Every transaction made with your debit card is a point earned towards a reward back to local businesses or charities. Rewards are easy to redeem and because the network is sourced from local businesses, cardholders do not have to drive into bigger cities to redeem their points. Socially speaking, local businesses are able to advertise to cardholders interested in spending locally and keeping more dollars in their community. Buzz Points promotes the local juice bar that source fresh produce from the local farmer and the uniqueness in a local artisan’s handcrafted jewelry. A Millennial shopping at these businesses would be reward for using your debit card.

3.     Utilize social media platforms:

Social platforms available today continue to grow almost daily. Millennials are using the smartphones to stay connected, share information, and archive experiences. Creating a social media presence as a credit union is an opportunity to communicate with this crowd directly. Read five tips of launching your social media presence to get started fast.

Studies have found that holding contests increases engagement. To make the most of the contest, challenge Millennials’ financial literacy or understanding of investing in their future. Through the contest pitch your credit unions’ products and services. While the growing popularity to use social media platforms continues to spur conversation, the FFIEC has provided a document for financial institutions to follow. This document provides suggestions on security and best practices for using social tools. Read the full document here.

The campaigns suggested above are not only playing to the interests of Millennials, but to the interests many consumers are expecting in the products and services most widely used. Nevertheless as this young generation gradually becomes the main bread winners for their families, the credit union to adapt to the Millennials’ evolving characteristics will reap the benefits of their efforts in only a few short years.

Holly Watson

Holly Watson

Holly Watson brings 5 years of experience to the small business marketing and online communication field. Prior to Buzz Points Holly managed the marketing communication and events for a local ... Web: buzzpoints.com Details