LITTLETON, Colo.-Looking to grow? Then do a better job of targeting those who are still growing themselves.
Maggie Camacho, director of operations and lending at Colorado CU here, is also a member of The Cooperative Trust (formerly the Crash Network), the development and mentoring program for young professionals in the CU community. Camacho noted that while finding new, creative lending strategies will be key to growth this year, just as important is finding a way to create a lasting bond with younger generations of members.
Camacho called Gen Y and the Millennials a market that still remains largely untapped, adding that despite events such as Bank Transfer Day, "I think there's a huge percentage of those college students that still may not understand how a credit union works."
The strategies suggested by Camacho for getting young adults involved in the inner workings of the CU include everything from creative lending tools that are attractive to younger members to finding ways for them to serve on committees within the credit union.
Additionally, Camacho suggested that CUs can work with schools-both high school and college-to make connections with students while also providing them with vital financial literacy tools. When it's appropriate, she said, CUs can start these members off with a credit card, and teach them how credit works and how to be a responsible card-holder, while also offering fun tutorials to go along with the card.
Outreach to young audiences may not do much for boosting the bottom line now, she said, but it can help lay the groundwork for future lending.
"They may not be the most profitable member, per se, in their teens," said Camacho, "but when they get into their twenties, you want them to only think about your credit union because of what you provided to them when they weren't looking for a loan."
