Angie Fuhrken...Insights from Millennials Angie Fuhrken CUNA Mutual Group, Madison, WI . ... I see...

What Matters NowTM

Insights from Millennials

Angie Fuhrken CUNA Mutual Group, Madison, WI

AGENDA 2

• OVERVIEW OF WHAT MATTERS NOW 2015

• WHO ARE MILLENNIALS?

• DIFFERENCES AMONG MILLENNIALS

• THOUGHT STARTERS

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3

WHAT MATTERS NOW 2015

Insights from the Middle

Age: 30-70

Income: $25,000-$100,000

cunamutual.com/whatmattersnow WORRY ABOUT THEIR

FAMILY’S FINANCIAL

STABILITY ON A

62%

DAILY BASIS

DEFINITION OF SUCCESS

IS KIDS & FAMILY

#1

TruStage What Matters Now™ 2014-15 Consumer Survey

THE ECONOMY IS IMPROVING

Unemployment at a year low

The economy grew in 2015

7

2.4%

Wall Street Journal: “U.S. Economy Grew Anemic 0.7% in Fourth Quarter”, Jan 2016 CNN Money: “Unemployment rate falls to 5.1 percent, but Americans are not finding pay increases”, Sep 2015

Wall Street Journal: “U.S. Car Sales Set Record in 2015”, Jan 2016

THE ECONOMY IS IMPROVING

Washington Post: “U.S. economy grew at a better pace than expected”, Nov 2015 CNN Money: “Unemployment rate falls to 5.1 percent, but Americans are not finding pay increases”, Sep 2015


The U.S. set a car sales record in 2015

17.5 million cars sold

2015 Confidence Index at 10 Year High

Nielsen Consumer Confidence Report Q3 2015 Wall Street Journal: “U.S. Consumer Credit Jumps, Signaling More Confidence in Economy,” Nov 2015

101

119

Q2 Q3

CONSUMER CONFIDENCE CLIMBS

52% WORRY ABOUT

THEIR FAMILY’S FINANCIAL

STABILITY ON A DAILY BASIS

OUR MOST RECENT SURVEY SHOWS


7

8

DEFINITIONS OF SUCCESS REVISITED

43% 41%

32%

31%

31%

Great relationship with spouse/partner

Strong relationship with God

Staying in good health

Happy/Content with who they are

Raising good/happy kids


MORE MEMBERS PROTECTED

MEMBERS PROTECTED MORE

The most compelling and successful way for hardworking families to build financial security.

VISION

MISSION

10

individuals in the US is a

Millennial

1 out of every 4

Census Bureau: “Millennials Outnumber Baby Boomers and Are Far More Diverse”, June 2015

$200+ billion direct purchasing power

U.S. Chamber of Commerce Foundation 2012 The Millennial Generation Research Review The Futures Company and TGI 2015

Most 18-34 year olds do not identify with the term

“Millennial”

Pew Research Center: “Most Millennials Resist the Millennial Label”, Sep 2015

Very few Millennials are single, childless, and live with their parents

14 14

The Futures Company and TGI 2015

TruStage What Matters Now™ 2015 Consumer Research

16

21 years old

Single

Attending College

Rents an apartment

Shopping for used car

Laura LAURA “The best financial advice is to only take out as [many] loans as you need at the moment!”

27 years old

Engaged

Establishing a Career

Looking for a Home

Leases a car

TOM “I haven't done much financial planning. It is mostly save, save, save.”


33 years old

Married, two kids

Established career

Homeowner

Owns two vehicles

Sara SARA SARA


SARA “I feel ok about the amount of debt we have - though, like everyone - I would like it if it was less.”

The Many Faces of Millennials


CUSTOM RESEARCH WITH MORE THAN

30,000 additional data points

TRUSTAGE CONSUMER SURVEYS

(n=4,000)

MRI ANALYSIS (n=25,000)

TRUSTAGE PHOTO JOURNALS (n=50)

U.S. YANKELOVICH (n=4712)

WHO ARE MILLENNIALS?

Age 18-34 Emphasis on individuals with incomes of:

$25,000-$100,000

What commonalities do Millennials share?

GREAT RELATIONSHIP WITH SPOUSE/PARTNER RAISING GOOD/HAPPY KIDS FINANCIAL STABILITY

STRONG RELATIONSHIP WITH GOD

HAPPY/CONTENT WITH WHO THEY ARE

23

39%

36%

31%

30%

27%

MILLENNIALS’ DEFINITIONS OF SUCCESS


66% “I feel like my stress level is directly tied with financial stability. At this moment, our finances hold us back from more meaningful goals.” ~ Laura, 33

of Millennials worry about FINANCIAL STABILITY on a daily basis

TruStage What Matters Now™ 2015-16 Consumer Survey TruStage What Matters Now™ 2015 Consumer Research

Average Millennial Debt

$47,689

iQuantifi 2015 Millennial Money Mindset Report Wall Street Journal: “Congratulations, Class of 2015. You’re the Most Indebted Ever (For Now)”, May 2015

Credit.com: “Think Student Loans Are Millennials’ Biggest Problem? Think Again”, Nov 2015 TruStage What Matters Now™ 2015 Consumer Research

“My current debt is $36,000 in school loans, $18,000 in a car note, $13,000 in credit cards consolidation. I absolutely hate that I'm in the hole as much as I am.”

~ Michael, 25

The Futures Company and TGI 2015 TruStage What Matters Now™ 2015 Consumer Research

“At the moment, I have credit card debt on top of my mortgage… It is frustrating. My debt is definitely holding me back from my dreams.”

~ Megan, 28

Good debt, is debt on something that will stay the same in value or make you money. For example, your home, or a business. Bad debt is debt on something that won’t keep its value…clothes, cars, boats, etc.”

~ Anthony, 28

“We need to sit down with a financial advisor... we will have to have better financial planning and budgets to be able to pay for [our children’s] education, everyday expenses, and think about retirement for ourselves.” ~ Alicia, 31

could answer five FINANCIAL LITERACY questions correctly 8% Only

Filene Research Institute Report: “Gen Y Personal Finances: A Crisis of Confidence and Capability”, May 2014 TruStage What Matters Now™ 2015 Consumer Research

46% will be in the market for NEW OR USED VEHICLES in the next 18 months¹

“I think my husband and I will consider buying a second car in the next year or two. I've learned my lesson, and will probably attempt to save a substantial down payment or find a really reasonable priced used car that we can afford...”

~ Ashley P, 28


57%

68% 76%

Millennials Gen X Boomers

of Millennials are homeowners 57%


13% 10%

6%

Millennials Gen X Boomers

And


plan on BUYING A HOME within the next year

13% plan on BUYING A HOME within the next year

And

Millennials feel ENERGIZED about the possibilities ahead


“I would say that I'm still in the early stages of my life… I feel very happy with how far I have come in my career and am looking forward to many more years to come.”

~ Mark, 25


84% would value


ADVICE OR GUIDANCE when it comes to financial decisions

Key differences among Millennials

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35

How do Millennial parents stand out?

How do Millennials vary across the country?

What can we learn about non-credit union member Millennials?

How do Millennials over/under 30 compare?


LIVE WITH THEIR PARTNER

3 out of 4 Millennials over 30


vs. less than half of

Millennials under 30



Finding enough time for family is very important to almost all Millennials over 30


“My dream is that hopefully my boyfriend gets his degree this year and I will not have to work as hard as I have been doing and can make more time for family.”

Laura, 33

“Personal goal in life is to travel to as many countries as possible before I start [to] have real responsibilities like a wife, children, or a mortgage.”

TruStage What Matters Now™ 2015 Consumer research

Conner, 25

Millennials over 30 more likely to worry about RETIREMENT SAVINGS

DIFFERENT FINANCIAL PRIORITIES

“I want [my kids] to start saving for retirement early because time slips away and then it will be too late to start saving enough.”

~ Alicia, 31


Millennials under 30 more likely to worry about PAYING OFF STUDENT LOANS

“I currently have student loans. I would say that my debt is holding me back and helping me reach my goals at the same time.”

~ Shanna, 22

42


Ryan, 24

“The amount of student loan debt I [have is equivalent] to having been through all four years of college. In my case, though, I didn't complete college, so the debt feels like an ironic burden.”

TruStage What Matters Now™ 2015 Consumer research

FINANCIAL HABITS ARE DIFFERENT

“I don't need a brand new car; I would rather have a newish car and not go into debt over it.”

~ Brice, 23

Less than 1/3 of Millennials under 30 have a car loan


45






46% are PARENTS


47 47

Parents

Non-Parents


“Right now I only have one goal.

Buy my first home.”

~ Wesley, 25, 2 kids

47

PARENTS ARE MAKING BIG PURCHASES


“I do expect in the next couple of years I will need to buy a new car and will have to finance.”

~ Laura, 33, 3 kids



Who researches financial products/services online after hearing about it on the TV or radio?

Parents 30%

Non-Parents 12%

Mintel: Speak My Language, 2015

61% bought something due to a

BRAND OR BUSINESS POSTING about it on social media


“I could not get by without my cell phone”


“I could not get by without my cell phone”

“Banks need to understand how busy everyone gets and I think the trend is to start doing things mobile and online…looking forward to see what they do to continue connecting with us through technology.”

~ Alicia, 31


53

parents say their most important savings is for unexpected emergencies


54

65%

Parents have financial concerns…

live PAYCHECK TO

PAYCHECK


55

But have a Positive Outlook

70% feel like their life is

MOVING FORWARD

“I feel most accomplished when I see what amazing people my children are growing up to be.” ~ Valerie, 30


56







More likely to say their family and friends often ask for and trust their advice on finances Most likely region to identify

as a definition of success in their lives

57

MILLENNIALS IN THE WEST

GfK Mediamark Research & Intelligence, LLC, 2013 MRI Doublebase, as provided by Razorfish.

“Feeling content/happy with who I am”

Most hours spent on the internet in an average week (23 hours) They are also most likely to click an ad within social networking platform Least likely to be familiar with credit unions

58

GfK Mediamark Research & Intelligence, LLC, 2013 MRI Doublebase, as provided by Razorfish. TruStage What Matters Now™ 2015 Consumer Survey

MILLENNIALS IN THE NORTHEAST

59


SOUTHERN MILLENNIALS Most likely to identify “Strong relationship with God” as definition of success

Most likely to use mobile device to read a digital magazine

They also drive the most miles – averaging 144 miles as a driver or passenger in the last 7 days

More likely than any other to trust the radio and newspaper

Like Southerners, this region more strongly identifies their relationship with God as a definition of success

60


CENTRAL MILLENNIALS

61

How do Millennials parents stand out?






Of Millennials would consider opening a credit union account

TruStage What Matters Now™ Consumer Survey, 2015

69% “I am most likely to use a credit union to get a loan in the future because their interest rates are much lower... They will help me save more money and give me the best choices for my personal needs.”

~ Candice, 23

But only 25% of Millennials have ANY credit cards, investments or loans through a credit union



TruStage What Matters Now™ Consumer Research, 2015

14% use a credit union for their primary account

And only

“I have used a credit union in the past. I never really knew much about how they were different from banks, and honestly I still don’t really know.”

~ Matthew, 24

“Not entirely familiar and do not use or plan to use in the future. I have heard that they can give better rates than other places but not sure how true that is.” ~ Jamie, 27

The #1 reason Millennials don’t use credit unions

“I don’t know much about them”

Filene: What Millennials Want: The Future of Millennials in the Credit Union, 2015 TruStage What Matters Now™ 2015-16 Consumer Survey

1 out of 2 non-credit union member Millennials feel comfortable using a bank that is

entirely online

“I use [an online bank] and I love it. I will continue to use them as their user interface is optimized for online and mobile use... helping me keep track of my finances at my fingertips.”

~Jordan, 23


Non-Credit Union Members

54% Credit Union

Members

40%

“I want to make payments using my cellphone”


“Definitely will use [mobile payments] - probably tonight! It's wonderful and convenient, allows ease of monetary transfer without having to lug cash around!”

~ Caroline, 22


69

“I will have my own business someday”

69


I would really like to start my own

business of some kind and eventually sell

it and retire early. I would say that is my

major dream.

~Anthony M, 28

“

d”


71






KEY TAKEAWAYS



Consumer confidence is on the rise

Millennials aren’t one size fits all - they are single, married, parents, college students, entrepreneurs…

They are encountering a series of financial decisions - and despite optimism, 84% would value advice or guidance

KEY TAKEAWAYS



Those under 30 are more apprehensive about debt and credit Parents are the most likely to make big financial purchases – homes, cars.

Millennials don’t yet understand the credit union difference

INSIGHT INTO ACTION

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75 75 THOUGHT STARTERS

• Debt management/ consolidation

• Home buying/Starting businesses

• Long term financial planning

Provide Financial Education

• Omni-channel experience

• Mobile functionality

• Non-traditional branch hours

Align With How Millennials Live

• Strong marketing channels

• Social media strategy

• Community involvement

Be Where Millennials Are

Promote the credit union difference

Investing in Digital Media • $100 million to expand media and optimize channels

• Approaching 1 billion digital impressions

• Retargeting and prospecting digital ads

• Paid search

Enhancing Online Capabilities • Apply & fully purchase online

• Online budget comparison tool

• Live chat & online service capabilities

• TruStage.com optimized for any screen

Investing in Products • Simplified Term life insurance

76 76 OUR PLANS

Online Budget Comparison Tool

All photos and quotations in this presentation were acquired through TruStage What Matters Now™ 2015 research. As such are CUNA Mutual Group Proprietary and Confidential Further Reproduction, Adaptation or Distribution Prohibited. TruStage Insurance products and programs are made available through TruStage Insurance Agency, LLC and issued by CMFG Life Insurance Company and other leading insurance companies. CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. The insurance offered is not a deposit, and is not federally insured, sold or guaranteed by your credit union. TSIP-1426634.1-0216-0318 © CUNA Mutual Group, 2015 All Rights Reserved

WHAT MATTERS NOW Insights from Millennials

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Angie Fuhrken...Insights from Millennials Angie Fuhrken CUNA Mutual Group, Madison, WI . ... I see...

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