A Generation Y and X study has concluded that 53% of those in Gen X (30-42 years old) and 61% of Gen Y (18-29 years old) had either changed their primary financial institution (PFI) or considered doing so in the past two years. That compares with 20% of the Silent Generation and 37% of Baby Boomers surveyed.
Some of the key findings:
The survey indicates that young people can be more impatient, less tolerant and harder to please than their cohorts in the older generations. It also found that younger customers are more likely than older customers to find fault or have problems with their primary financial institutions. For example:
37% of Gen Y and 36% of Gen X believe they would get better customer service at a different bank;22% of Gen Y and 21% of Gen X reported being upset in the past year about high fees, compared with 14% of Boomer and 6% of Silent Generation respondents; and18% of Gen Y and 17% of Gen X reported being upset about a lack of ATM locations, compared with 11% of Boomers and 3% of the Silent Generation.
This report should be very encouraging to credit unions. With the average age of credit union members pushing 50, attracting young people is definitely on credit union leaders' minds.
The biggest issue I see is that while young people are open to change, credit unions aren't doing enough to get on young people's consideration list. So unfortunetly that change is more than likely to be from one bank to another bank.
Since young people are not in love with their primary financial institution, credit unions have a great opportunity to step up and be that alternative that young people are obviously craving.