This generation's wants and needs are very different from previous generations, and credit unions have taken the time to truly understand them. According to an FDIC survey, 30% of this generation does not have a bank account because they do not trust """"banks"""". Another 25% believe the fees are far too high. So credit unions have done an excellent job of promoting themselves as a great alternative for young people who are concerned about these issues. Here are some of the reasons why millennials prefer these types of financial institutions.
Improved Customer Service
Credit unions are known to be more customer-friendly than traditional banks. They can deal with their members on a more personal level because they are generally a little smaller in size.
According to a 2018 Credit Union checking survey, 82% of credit unions offer free checking. Only 38% of banks provide free checking. These accounts have no transaction requirements in order to avoid paying a monthly fee. In addition, they have lower overdraft and ATM fees.
Reduced Interest Rates
They usually have better rates on savings and investment accounts. Millennials keep more of their resources in cash than any previous generation, which means they need a safe place to put their cash where it is safe from market fluctuations and receives reasonable rates. Keep in mind that they not only offer better rates on savings accounts, but also on credit cards and loans.
Millennials want to improve their financial literacy. Credit unions are eager to educate their members in order to assist them in making sound financial decisions. They frequently hold seminars on a variety of topics to assist members in managing their finances. These types of educational opportunities are frequently provided for free and are not intended to promote any specific financial product.
Dedicated to the Community
They usually have active social responsibility programs that benefit the communities in which they live. This is extremely appealing to millennials.
Simple to Work With
Traditional banks can be perceived as stuffy, whereas credit unions are known for their excellent customer service and """"easy to do business with"""" attitude. They are offering streamlined online and mobile banking experiences that were previously associated with larger, more established financial institutions in order to keep up with the technology that the younger generation expects.
Millennials, for the most part, have massive amounts of student loan debt. They are not purchasing houses or automobiles. They are waiting to start families and are more concerned with community service than with a large paycheck. Most importantly, they are avoiding """"corporate America"""". That is why Credit Unions meet their requirements. They are non-profit, community-focused organizations that connect with young people who want to make the world a better place."""