A survey of over 10,000 individuals indicated that 1 in 3 millennials are open to switching banks in the next quarter. As a matter of fact, one third of millennials don’t believe they need a bank at all.
According to Amy McGraw, VP of Marketing at Tropical Financial Credit Union, many millennials are suspicious of large financial institutions after the financial crisis of 2008 and remember when Band of America instituted a $5 a month debit card fees in 2011. It is said that millennials are more comfortable with smaller banks and enjoy hyper-local institutions where there is a lot of familiarity and trust. In fact, a JD Power survey indicated that big banks were losing customers at a faster rate to smaller banks and credit unions due to poor service and increased fees.
An article in the South Florida Business Journal shares a comment from Brian Warfel, Executive VP of retail delivery and branding for Power Financial Credit Union. Brian explains that it’s hard for a credit union to compete with a big bank from a marketing standpoint, in terms of the cost of prime-time TV advertising. The article further explains that Credit Unions are reaching out to millennials via social media and word-of-mouth.
Financial marketers know that media and word-of-mouth will only get them so far. Credit Unions need to expand their marketing horizons and go back to the basics for success.
Since trust appears to be an important factor for millennials in joining a credit union, marketing managers need to understand the following points:
Credit Unions looking to increase their business with the Millennial market segment can contact Dataman Group Direct in Boca Raton, FL at (800) 771-3282 for additional information