Millennials migrate to credit unions . . . and away from banks!
The housing bubble burst, Lehman Brothers collapsed and the 2007/2008 financial crisis had Americans looking for alternative financial service solutions. Where would they turn?
In the years following the 21st century’s largest financial crisis thus far, Americans sought out businesses they could trust, build relationships with and attain a feeling of security.
Americans sought out credit unions and by 2014, it’s safe to say, Millennials continue to migrate to the credit union industry. The Credit Union National Association reports that in the one year period between 2013 and 2014, 2 million Millennials alone, joined a credit union!
Millennials are here to stay.
No matter what drove them to the credit union industry, now that they’ve visited, they will not be leaving anytime soon. What is it that is attracting the millennial generation to the credit union industry?
- Credit unions are local, community based financial institutions. Members should not be surprised if they see their credit union CEO walking through the lobby just to say Hello. Credit unions and members also share a common goal: the betterment of the community in which they reside. This shared sense of “community” increases loyalty and feelings of trust among members.
- Credit unions are not-for-profit cooperatives with the sole purpose of serving consumers. As a non-profit organization, credit unions earn a “tax-exempt” status allowing them to provide members, fewer fees, and higher returns on savings and lower interest rates on debts.
- Not near a local branch? Not a problem! Credit unions are local but, with more than 30,000 surcharge free network ATMs, they have a national reach.
- It is not uncommon for Millennials to have a poor or non-existent credit history. How can you build credit if your bank won’t issue you a credit card or provide you the loan? Credit unions, on the other hand, have fewer loan qualifications and many offer “credit builder” credit cards to help members establish credit.
- Credit unions are focused on improving the financial well-being of its members. Financial literacy is high priority and members can attend seminars, meet with a financial advisor, or simply speak to their credit union service representative for information on first time home buying, youth savings, budgeting, maintaining good credit. . . and so much more!
- Credit unions are keeping pace with technological advancement in mobile banking, APPs etc. Millennials looking for a balance between the personal touch of in branch banking and mobile, will find both at their credit union!
- Millennials, now the largest generation in the workforce today, are the most significant growth opportunity for the credit union industry . . . and it looks like they have made their decision!
We believe in being here for you!
PFP | The Family Security Plan® has been working in the credit union movement since 1973 and remains committed today to unite the nationwide community by bringing valuable information about the lives of over 400,000 credit union members who know us, like us and trust us to provide them and their families the foundation for a secure future.
For more information about PFP | The Family Security Plan® and our portfolio of supplemental insurance products, visit our product page or call 855-789-4976 to speak with a dedicated PFP | Family Security Plan® Representative.
Written by: Amanda Keefe