MADISON, Wis.-Mark Meyer, executive director of the File Research Institute, knows he's "taking a leap" with his prediction that credit unions will be "young, hip, and cool" 100 years from now.
"I think credit unions will be the Apple (computers) of tomorrow," Meyer said. "This fracture in our economy is the moment that will help credit unions find their way. It's going to drive young people back to credit unions so they become a fixture in the financial services landscape."
Studies Filene is conducting today point to the shift, according to Meyer. "Over the last five years we have completed a tremendous amount of research on the young adult issue, and what we are finding in this that in these interesting economic times you are seeing the beginning of a change. Folks under 37 who have been battered pretty good in the market and thought they we following the rules are starting to rethink how they save. They will invest, but after they save their first 10% of their income in a safe and secure manner."
Not only will safety drive more youth to credit unions, but also the appeal of the cooperative structure. "Young adults have grown up through the Enrons and all of the greed, and are attracted to credit unions for their social mission," said Meyer, citing evidence. "We have a relationship with universities across the country to place MBA interns at credit unions, and this year 107 students applied."
But credit unions' youthful look won't just be driven by its membership, asserted Meyer, it will come from the aging of boards and leadership. "It won't be a slow migration to younger leadership. The young, hip, and cool will take this thing and run with it."
Meyer insisted that the next few years will be critical for credit unions to begin to change their future, as the opportunity to alter the current course will not last long. "If credit unions leverage this opportunity, it will be a really interesting century ahead of us," Meyer suggested.
