If It Looks Like a Big Bank, Acts Like a Big Bank, Then It Must Be …

In my earlier three part blog I discussed:

1. The evolution of credit unions and the direction we can expect to continue
2. Banking in the information age which revolves around concepts and data provided by Brett King. If you have not read Bank 3.0 by Brett King, I highly suggest you consider reading his book
3. Four behavioral disruption phases and each phase is disruptive enough to be a game changer in banking

I can continue to provide data, statistics and information to further support the three premises, but more importantly what are you going to do to address the new expectations on your members? Particularly those members under 40 years old, and how are you going to attract them to your credit union. 

The 18 to 35 age bracket is collectively known as the Millennials. Millennials now make-up the largest age segment of our population, passing the baby boomers. If you don’t have a plan to meet their banking needs then get ready to close the doors because there are lots of traditional and emerging non-traditional financial service providers that will. The good news, or bad news depending on how you have positioned your credit union, is the Millennials have a huge distrust of big banks and bankers. 

1. 71% would rather go to the dentist than listen to what banks are saying
2. 1 in 3 are open to switching banks in the next 90 days  
3. All 4 of the leading Banks are among the ten least loved brands by Millennials
4. 68% say that in 5 years, the way we access our money will be totally different
5. 70% say that in 5 years, the way we pay for things will be totally different
6. 33% believe they won’t need a bank at all
7. Nearly half are counting on tech start-ups to overhaul the way banks work
8. Millennials believe innovation will come from outside the industry
9. 73% would be more excited about a new offering in financial services from GOOGLE, AMAZON, APPLE, PAYPAL or SQUARE than from their own nationwide bank

How is your credit union positioned?  In the eyes of the Millennials are you a Bank or Bank Lite? 

In the next blog we will discuss how to address these issues and attract and retain Millennials, the life blood of your credit union.  

EPL Product Management

Data Source: Millennial Disruption Index study