Wondering how your credit union can attract Millennials and Gen Zers to your auto loans? That is a smart question as Millennials are the largest generation group in the U.S. today. In fact, they were predicted to account for an estimated 40% of auto loans in 2020. In looking to the future, appealing to Millennials is also going to help you on the path to attracting Gen Zers — the next up-and-coming generation.
But what steps should you be taking to earn the business of these younger buyers? A good place to start is looking at how the generations think and operate, then you can meet their needs with a competitive auto lending solution.
A closer look at Millennials and Gen Zers
Millennials (born between 1981 and 1996) were the first generation to grow up with the internet, which officially became available to the public in 1993. As a result, they are tech-savvy, using the web as a regular part of daily life from staying connected with friends and family on social media, to checking the news, to sending emails. Despite privacy concerns, many continue to share and access sensitive information, including the estimated 46% who bank online, according to a survey from Jumio and Javelin Strategy & Research. They prefer to get things done easily and on-the-go.
Gen Z (born 1997 to 2012), following on the heels of Millennials, is even more technically adept. Members of this group were born into a world where the internet already existed, and they grew up as it reached later stages of development. One of the key advancements was the wide adoption of personal smartphone devices. Consider that smartphone ownership in this group exceeds television ownership and 57% use their smartphones several times per hour.
While technology is well integrated into the lives of the Millennial generation and plays a key role in many daily activities, Generation Z does not know a life without it.
How to attract Millennials and Gen Zers to your auto loans
As a credit union, you can attract Millennials and Gen Zers to your auto loans by offering a user-friendly platform that meets their digital needs and wants. They are comfortable interacting online and expect the option to be available. Further, many are skilled comparison shoppers who opt to get several quotes before making a buying decision. Being so, an online auto loan origination platform has become essential to remain competitive.
You should be able to offer:
- A streamlined online application process so borrowers can apply from their computers or smartphones
- An automated decision engine to provide fast approvals
- A direct loan origination system in-app
If your credit union cannot provide customers with a quick auto loan quote online, you’ll often lose out to another organization that can. The more you can enable remotely, the better. That being said, Millennials and Gen Zers admit they do like the option to come into the branch when they need assistance, but it shouldn’t be a necessity.
The future of lending is digital
In the coming years, as Gen Z enters adulthood and Millennials continue to play the biggest role in our economy, optimizing your online offerings is going to be key to surviving and thriving. A key factor is not only your mobile banking, but also your loan origination systems.
The days of members coming in to fill out paperwork and waiting for an answer are numbered. You need to become the trusted, agile, innovative credit union that meets customers on their devices with an intuitive interface. Your new audience expects a high level of engagement and personalized service that seamlessly transitions from the digital world to the real one.
It may sound complex to shift into digital auto lending offerings, but it doesn’t have to be. Sync1 Systems’ highly configurable Loan Origination software enables online lending that allows the Loan Officer to focus on the member experience while providing ideal rates in a short amount of time. Learn how your credit union can easily optimize your loan origination process today!