Millennials and Credit Unions Form the Perfect Partnership

In 2011, young and old alike united to fight back against the large fee changes major banks were planning to roll out.  They designated November 5^th as “Bank Transfer Day”—the official day to cash out their bank accounts and make the switch to local, not-for-profit credit unions.  This movement marked a major turning point in how people bank as rampant distrust in the banking industry increased.

The Millennial Disruption Index set out to identify the industries most likely to be transformed by Millennials and identified Banking as the industry at the highest risk of disruption among younger people. Apparently, 71% of young people would rather go to the dentist than listen to what banks are saying.  Credit Unions have been the natural alternative choice for younger people ever since Occupy Wall Street, where 60% of protestors were members of Generation Y.

So why have young people decided to make the switch from corporate banks to credit unions? What fundamental differences between these institutions have made credit unions preferable to a younger generation who are still learning to manage their finances and establish credit?

Probably because credit unions won’t throw around the word Millennial to identify and generalize an entire population of banking customers. At credit unions like Finger Lakes FCU, people are more than just their generation—they are individuals with unique needs, backgrounds, and interests.

You’re a Shareholder

Credit unions are non-profit organizations.  At credit unions, customers are called “members” and their account buys them an equal share in the company. This means that they also have an ownership in the credit union, and each have a vote when their credit union’s Board of Directors are elected. The Board is made up of current members, and their seat on the board is completely voluntary. This is fundamentally different from the position stockholders hold at traditional banks.  Keeping these positions voluntary ensures that the board is making decisions that are in the best interest of the members, not the board.

Stockholders at traditional banks may not necessarily be bank customers. These individual stockholders are the ones who profit from the bank and are generally the reason why banks have higher fees and are less likely to offer loans to high-risk customers, such as young people.

You’re Treated Like a Real Person

Credit unions offer wonderful customer service to their members. This is simply because without their members, credit unions would not exist. This means that member service representatives are patient and helpful whenever a member is having an issue. Whenever you call Finger Lakes FCU, you are able to speak to a real person who can answer your questions quickly and directly.

Receiving a Loan is Simpler

Individuals with low-moderate income, minorities, immigrants and young people are heavily targeted by sub-prime and payday lenders.  Credit unions combat this issue by offering loans to individuals with lower credit scores at lower rates than traditional banks offer.  Traditional banks still dismiss members of the “millennial” generation as immature and high-risk. However, credit unions such as Finger Lakes FCU recognize that young people are now at a time in their life when they are searching for their first auto loan or mortgage, and we want to help our members achieve their dreams.

We Understand Your Unique Concerns

A recent UBS Investor Watch Report Survey found that the top financial concerns among young people are retirement, their and their parents’ financial situation, and getting good financial advice.  Credit unions understand this and keep it in mind when offering products and services to younger people. Most credit unions offer financial education programs that help people of all ages learn how to manage their finances and improve their credit score. Consultation services are also offered to all members, considering that a lack of financial knowledge is a common issue among young people. Finger Lakes FCU operates from a position of trust between themselves and their members and we hope that our members also place that trust in us.

We’re Just as Tech Savvy as You Are

While young people value respect and customer service the most when searching for a great banking experience, they also want to be able to take advantage of great electronic features such as online and mobile banking, mobile deposit, and online bill pay. It would also be great if their financial institution hangs out where they hang out—on social media. More and more credit unions, such as Finger Lakes FCU have embraced technology and social media in order to offer a more complete service for our members. Credit Unions have the ability to grow and evolve alongside their members because they care about the same things their members care about.

Our Low-Fee Business Model Helps You Stick to a Small Budget

So many young people are still in college or have recently graduated. A small and competitive job market has created an environment where a majority of young people are forced to live paycheck to paycheck. Inconvenient monthly fees on checking and savings accounts, minimum balance requirements, and high overdraft fees (up to $75 at some banking institutions) have made it so that some young people can’t even afford a bank account. This is the reason over half of all young people keep their assets in cash.  Credit unions are working hard to offer people of all ages with a safe, secure, and affordable banking experience.

In Conclusion

A community-oriented business model and a philosophy of service over profit have made credit unions an ideal choice not only for young people, but members of all ages.  If you’re tired of being a banking customer and are looking for an institution that will become your financial partner for decades to come, then join a credit union today! Finger Lakes FCU membership is open to anyone who lives, works, volunteers, worships, or attends school in Ontario, Yates, and Seneca counties.

Read More

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