Credit unions have taken the time to fully comprehend the requirements and wants of this generation, which are all very different from those of previous generations. Because they don't trust ""banks,"" 30% of this generation doesn't have a bank account, according to an FDIC survey. 25% more people believe the fees are significantly too expensive. In order to appeal to young people with these issues, credit unions have done a fantastic job of marketing themselves. Here are a few explanations for why millennials support these financial institutions.
Improved Client Service
Traditional banks are not known for being as customer-friendly as credit unions. They may interact with their members more personally because they are typically a little smaller in size.
According to a 2018 Credit Union checking survey, 82% of credit unions provide free checking. Only 38% of banks offer free checking, though. There are no transaction requirements for these types of accounts, hence there is no monthly charge. Additionally, their overdraft and ATM costs are lower.
decreased interest rates
They typically provide better interest rates on savings and investment accounts. Millennials invest more of their resources in cash than any previous generation, therefore they require a secure location to store their money where it is protected from market fluctuations and receives competitive rates. Remember that they provide cheaper rates on credit cards and loans in addition to greater rates on savings accounts.
Millennials want to improve their financial literacy. The goal of credit union education is to empower members to make wise financial decisions. To assist members in managing their funds, they frequently host lectures on a range of subjects. These kinds of educational opportunities are frequently free and typically do not serve as an advertisement for any particular financial product.
Typically, they have active social responsibility projects that benefit the neighborhoods where they live. Millennials find this to be really appealing.
Simple to Work With
While credit unions are known for good customer service and a """"easy to do business with"""" culture, traditional banks are sometimes seen as stuffy. They are providing streamlined online and mobile banking experiences, which were formerly associated with the larger, more established financial institutions, in order to stay up with the technology that the younger population expects.
The majority of millennials are heavily indebted from their student loans. They don't purchase automobiles or homes. They are waiting to start kids and would rather give back to the community than receive a huge salary. They are avoiding ""corporate America"" above everything else. Credit Unions fill those needs as a result. They are not-for-profit, community-focused organizations that appeal to the young people working to improve the world."""