What Do Young People Want and Need?

What do young people want and need from their financial institution?

Tim McAlpinePRESIDENT & CREATIVE DIRECTOR

CURRENCY MARKETING

CREDIT UNION MAGAZINE, APRIL 1969

Although the average age of today's population is getting younger, the average age of today's credit union member keeps creeping upwards. But credit unions can remain young—in thought, service and membership—by serving today's youth as well as their aging membership.”

Gen Y and Z1

Young adult staff2

What young adults need3

Young & Free learnings4

• Founded in 1990• Based in Canada• 80% of business is in U.S.• 100% credit unions

30 and counting!

currencymarketing.ca/think

What makes Gen Y and Z tick?

Silent1928-1945

Baby Boomers1946-1964

Gen X 1965-1979

Gen Y1980-1996

Gen Z 1997-Now

78million

50million

76million

BABY BOOMERS

23million

7 more years left in this generation

SOURCE: CUNA, CUCC, U.S. CENSUS, WIKIPEDIA

NORTH AMERICAN

Averageage

The great divide

48UNITED STATESCREDIT UNION

MEMBER

CANADIAN CREDIT UNION MEMBER54

1989 1996 2000 2002 2006 200817of the population is between 18 and 24

SOURCE: CUNA MARKET RESEARCH

4 %of credit union members are between 18 and 24

40 TRILL

BOOMERS

X + Y+Z

98of next gen inheritors CHANGE advisors, and move away from their parents existing banking relationships

SOURCE: THE RUDIN GROUP

anti hype technology confident spenders savvy cool goals college respect

planning influence truthful authenticity distrust forward thinking family

questioning quality media university wary friends fun world view connected

questioning quality cool truthful truthful confident savvyYGEN

Gen Y‣ Follows Generation X

‣ Largest generation in history

‣ Born from 1980 to 1996 (17 to 33 in 2013)

‣ Socially conscious‣ Distrust companies and media

‣ Could care less about credit unions!

Gen Y‣ Entering and finishing college

‣ Finishing college and university

‣ Planning five years ahead

‣ Looking forward to relationships‣ Confident but wary

‣ Practical world view

Gen Y‣ Respect parents and education

‣ Shopping is an event, not a chore

‣ Raised on texting and IM

‣ Social networking is huge‣ Open to spirituality

‣ Indifferent to Christianity

questioning quality cool truthful truthful confident savvyZGEN

Gen Z‣ Follows Generation Y

‣ Born from 1995 to 2011 (2 to 18 in 2013)

‣ Smaller than Generation Y

‣ Only knows of a world with the Internet‣ Faces a dismal economic picture

Growing up digital‣ Constantly connected

‣ Phone serves as everything hub

‣ Internet access mostly via computer

‣ Still regular TV watchers‣ Digital connections trump money, music, movies

‣ Reluctant to disconnect

Growing up digital‣ Legally or not, Facebook is the place to be

‣ Constantly chatting, often online

‣ More at ease socializing online than offline

‣ Spenders first, savers second‣ Sensitive to family’s financial situation

‣ Parents have mixed feelings about social networks

Growing up digital‣ Both online and offline shoppers

‣ Parents usually pay online

‣ Tethered to parents for shopping

‣ Economic concerns weigh heavily‣ Girls more concerned about war and crime

‣ Pessimistic about the near term

Young adult staff

Typical staff pictures

Typical board pictures

Credit Union Central of Canada’s National Young Leaders Program

cucentral.ca

World Council’s Young Credit Union People (WYCUP)

woccu.org

CUES Next Top Credit Union Exec

ntcue.com

The Cooperative Trust

trust.coop

CU Water Cooler

cuwatercooler.com

Positive energy and a palpable sense of frustration

“I’m out!”

I wanted to stay, but I had to better myself.”“

YOUNG MALE MARKETER WHO RECENTLY LEFT A $90 MILLION CREDIT UNION FOR A

CAREER IN ANOTHER INDUSTRY

We see this huge opportunity to turn this very archaic industry into something huge, but we all see the same brick wall from our credit unions.”“

YOUNG MALE MARKETER WHO RECENTLY LEFT A $90 MILLION CREDIT UNION FOR A

CAREER IN ANOTHER INDUSTRY

“We aren’t like our parents, stuck in a rut

for our whole life.”

I wonder if the accessibility to information, the mobility of the workforce and the global awareness of a multitude of complex issues leads some of my generation to say, ‘I’ve contributed to the tackling of these financial issues; maybe I’ll tackle something else for a while; the world needs me!’”

BEN IS AN ADVISOR AT $800 MILLION MENNONITE SAVINGS AND CREDIT UNION, ONTARIO, CANADA

Mark Zuckerberg

Jack Dorsey

“My credit union doesn’t behave like

a credit union.”

The bill of goods that has been sold to young credit union professionals is that our model puts our members first (and profits last). What’s hard to understand, however, is why our response to the economic collapse has been so similar to that of the banks we were told had business models that were completely foreign to ours.”

MATT DAVIS, INNOVATION DIRECTOR AT THE FILENE RESEARCH INSTITUTE,

MADISON, WISCONSIN

“I love credit unions, but I can’t stand my credit union.”

The reality is, many credit unions today have lost sight of their original purpose of people helping people. They suffer from the myopia of immediate stressors, the fear of change, and can’t shake loose from the inertia of what has been. I can’t tell you how many credit union employees I’ve heard say, ‘I love credit unions, but I can’t stand my credit union.’”“

BRENT DIXON, YOUNG ADULT RESEARCH ADVISOR AT THE FILENE RESEARCH INSTITUTE

AND THE CREATOR OF THE COOPERATIVE TRUST

“We want to make positive changes that will

push our industry”

Title here

In an industry that is already old-fashioned in many ways, smothering our voice becomes a de-motivator. I think that’s what causes people to leave it altogether. I believe in the possibilities of what we can be, and that’s why I’m committed to the movement.”

RONALDO HARDY, CEO AT $400 MILLION LA CAPITOL FEDERAL CREDIT UNION, LOUISIANA

“I’m in for now, but frustrated!”

“The saddest thing about the credit union system right now is it’s

inability to articulate a vision.”

A YOUNG CANADIAN CREDIT UNION PROFESSIONAL IN HIS 30S

It is the responsibility of senior credit union leaders to create a sense of mission or vision that can feed and sustain the idealism. In Canada, this idealism has essentially evaporated. Our credit unions operate profitably and professionally, but our operations are bland and undifferentiated as we navigate the unclear cultural relevance of being a credit union.”

It’s not all doom and gloom

“I’m in for life!”

MATT VANCE, MARKETING/COMMUNITY MANAGER AT $139 MILLION INDUSTRIAL

CREDIT UNION, WASHINGTON

I have a voice and I see myself as part of the solution. My credit union was the first to give me a shot right out of college. I was handed the keys to a marketing department at the age of 24. I’ve had an amazing opportunity to learn, try new things and fail and grow over the past five years.”“

I have been allowed to bring some of my own innovation to the credit union and run with it. This, added with my current role, has provided me with a greater purpose and it has made all the difference. It has allowed me to be more engaged, more committed and wanting to do more for my credit union, along with providing me with the motivation to do a better job in my current role. By being provided with these types of additional opportunities and responsibilities, I do believe I will be a lifer.”

“DEVIN SELTE, CORPORATE TRAINER, LEADERSHIP

DEVELOPMENT AND CHANGE LEADERSHIP AT $10 BILLION SERVUS CREDIT UNION, ALBERTA, CANADA

“My personal values are so aligned with

the mission”

WILLIAM AZAROFF, DIRECTOR, BUSINESS & COMMUNITY DEVELOPMENT AT VANCITY,

$18 BILLION, BRITISH COLUMBIA, CANADA

I don’t think age or size of organization has anything to do with it. I think the fact that my personal values are so aligned with the mission of Vancity is instrumental and perhaps completely unique. For me, that is the critical ingredient.”“

It’s not about the money‣ A credit union that believes in innovation and free thinking

‣ A superior who they respect

‣ A belief that they are part of something bigger than just their own credit union‣ Continued educational opportunities

More success ingredients‣ A personal passion and purpose that aligns

with credit unions

‣ Room to try new things

‣ Opportunities for growth‣ An obvious path for advancement