18 % of Gen Z and Millennials bank customers or credit union members intend to switch their primary financial institution in the next year or two. But, during the pandemic that changed big time. 27% of Gen Z now plan to switch and a whopping 38% of Millennials plan to switch. Imagine 4 out of every 10 Millennial consumers leaving your bank or credit union. Who has the most risk – big multi location banks. Who stands to benefit the most – credit unions.
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Bad news for the current financial institution, good news for competitors. Where do they go to find out about a new banking relationship? Most go to their secondary bank or credit union and most have a secondary bank or credit union. So, building a good defense is good business, but also consider offensive moves to be on the receiving side of the switchers.
In the dash to attract these customers, banks and credit unions need a good marketing strategy. Understand what these customers and members are looking for in a new bank or credit union. Know the best way to target and communicate with these prospects. Know the role of things like – fees and digital banking play in their decision. Are they dissatisfied, and if so, by what? To put together a winning campaign, these issues need to be understood.
Over 5,600 Gen Z and Millennials customers and members were recently interviewed in 44 markets across the United States to find out what is important in choosing a new financial institution and how best to reach them. Then another nearly 700 were questioned during the pandemic
So here are some items to chew over. Over one in four want free checking and that is the top item mentioned in selecting their new primary bank or credit union. And it is the most important criteria for both Gen Z and for Millennials. Right along that is the basics of the banking experience – handles transactions accurately. Digital banking comes up but somewhat down the list. The pandemic does change that somewhat – but not as much as you think and when it does come up online banking is more often mentioned than mobile banking. Do not relax on digital banking but do not panic either. But at the end of the day, interest rates, fees and good financial advice is are keys in the pandemic migration – and play into the hands of credit unions.
For many years, large banks and credit unions have had this type of information. The outcome – more effective messaging, better use of media, better personnel training programs, improved results. Now local banks and credit unions can compete on a level playing field with these new reports as guidebook s– ATTRACTING GEN Z AND MILLENNIALS TO YOUR BANK OR CREDIT UNION and THE CHANGING BANKING MARKETS IN THE COVID – 19 ERA. Visit our website to learn more about these reports and others that are available. Since these reports are syndicated, you receive top quality research (with very large sample sizes) and the price is a fraction of comparable research.
