MADISON, Wis. – Young adults frequent credit unions as much as the general U.S. population, but credit unions lag behind banks in attracting the so-called Generation Y by a factor of three to one, according to a new study by the Filene Research Institute.
The study, Attracting Young Adults: What Do We Know About Their Use of Financial Institutions and Payment Behaviors?, concluded that members of the 18-to-34 year-old age group value convenience, product features and service as the top three reasons for choosing their primary financial institution.
The credit union think tank also found the type of delivery instrument a Gen Yer chooses depends on the type of transaction and the socio-demographic characteristic of the payer.
The study recommends three ways of reaching this important demographic group: study the top reasons the customer chooses a primary financial institution when speaking with Gen Y members or potential members; understand what elements of convenience matter most to young adults; and use data on specific payment choices to understand how young consumers are creating their financial relationships.
