Gen Y and mobile loans: Are you optimized to profit?

All credit unions are looking to increase lending, but if  you want to be successful,  you need to evolve with the newer generations.  The way you made loans 10 years ago just won’t fly with Gen Y. It’s all about faster, easier access. It’s all about smartphones. It’s all about  optimizing your credit union to grow your loan portfolio! Let’s look at two key factors that will affect your loan portfolio in the coming years, Gen Y and mobile loans.

Who is Gen Y (also known as Millennials)?

•       Born between 1981 and 2000

•       Current age is 14 to 33

•       Largest consumer group in U.S. history

•       90% use the Internet

•       75% use social networking sites

       

Millennial Expectations (faster, faster, faster)

•       Embrace emerging technologies

•       Require convenience

•       Want instant gratification

In this day and age, nothing answers the call for instant gratification and technology-linked convenience like the smartphone.

Smartphones are changing everything.

How many of you check your phone for messages, email or the latest news the first thing upon waking up each morning? Well consider this: For approximately 88 million people, the first thing they do each morning is use their smartphone. In fact, 90% of 18-29 year-olds sleep with their smartphone within arm’s reach! Smartphones are a huge wave taking over our personal and business lives. They are the next wave in lending as well. 

This reliance on smartphones is dramatically changing the way credit union members conduct their financial business:

•       Branch visits average 3-4 per year

•       Internet visits average 7-10 per month

•       Mobile visits average 20-30 per month

Branch visits are down; mobile visits are way up! The shift toward mobile banking is upon us and the  number of people who buy via mobile device will increase 65% between now and 2016.     

Credit unions cannot afford to ignore the Millennials.

“Their collective buying power alone—an estimated $200 billion annually—is already noteworthy and will only increase as they mature into their peak earning and spending years,” report Jeff Fromm and Christie Garton in their book, “Marketing to Millennials: Reach the Largest and Most Influential Generation of Consumers Ever.” If you don’t offer a mobile means to access loans, you are missing out on a huge demographic: Generation Y. What  is your  credit union doing to cater to them? Mobile lending is here. Are you ready for it? Not having a mobile optimized loan application can cost you 25% of your online volumes. How are you preparing for the mobile needs and expectations of your members? What credit union products and services could/should be delivered to mobile devices?  If you have not already considered these questions,  you should!

Yvonne Sambrano

Sr. Lending Product Manager
EPL, Inc