CORONADO, Calif. — Don't let that Gen X and Gen Y marketing focus cause your credit union to lose sight of the value of the Baby Boomers.
The aging boomers, the oldest of whom are now eligible for Social Security, helped drive credit union growth and expansion over the past three decades, but have been sidelined by CUs as attention turned to younger generations.
That's a mistake, according to Jeff Hunt, consumer program manager with CUNA Mutual Group, who told Credit Union Journal's Grow Show the Baby Boom generation are an "overlooked asset" for most CUs.
"You should always know where your boomers are in your credit unions," Hunt advised. "Right now they are on the edge of retirement. But that's probably more of a state of mind. Retirement is that time when you shift your thinking from savings and career to freeing up some of your time and thinking about how you're going to start spending your assets."
What every credit union needs to know is "how many of your products and services will be retiring with your boomer members," said Hunt.
Hunt noted the old pattern of behavior of savings accumulation and declining borrowing among older segments is being put on its ear by the boomers, who represent 26% of the U.S. population and hold 70% of consumer assets. "Wouldn't it be interesting to know in your credit union if 70% of the business is owned by boomers," asked Hunt, before adding, "Boomers are more profitable than previous generations of retirees."
According to Hunt, there are seven traits that set Baby Boomers apart:
- Boomers like options, they don't like complexity.
- Age is meaningless.
- Bommers want to change the world and improve it.
- Boomwea like to buy a little luxury every day.
- Boomers like to explore.
- Boomers are focused on their families.
- Boomers are optimistic about the future.
In response to those traits, Hunt recommended credit unions take several steps, including:
- Regain the IRA market. Thinking about IRA of future, Hunt used the iPod as an example. Is it easy to see choices, read the display, navigate? Is there great customer support? "The IRA needs to become the hub for the retirement finances," he said.
- Stay Young. Boomers want to look as good as they feel. "Anti-aging is a $50 billion industry in the United States," said Hunt. That includes a need for financing, with more than 80% of major dental work requiring loans.
- Help Boomers Pay for Illness: Need Help Paying for Illness. "Cutting edge technology brings quality of life," said Hunt, noting that technology comes with a price. Hunt said CUNA Mutual is working to bring Medicare solutions right now to credit unions. "We need to think of ourselves now as more than financial services companies, and instead as health are companies, too," Hunt suggested.
- Partner with the Planet. Boomers list planet concern ahead of price. Boomers are gaining sense of nostalgia and community and want to be involved in volunteer programs. Boomers are reluctant coporatation citizens. CUs should reempahsize collaborative roots.
- Provide Great Experiences from the boomers' point of view. "They want convenience and things on their terms. Don't lean toward one channel or another. Develop all your channels, and let your boomers pick."
- Enable Them to Explore "on the web, in your branch in the community and around the world."
- Help Boomers Spend Time with the Family. "All of this really centers around home," said Hunt, who advocated every credit union explore offering reverse mortgages. "The main point is not all your members are rich, and some of them are rich in their homes. They have no other options."
- Be Financial Coaches. They really want someone who will sit there and explain the game plan to them," said Hunt.
