LAS VEGAS-For credit unions, consumer trust is a mixed bag.
A recent study found 36% of big bank customers trust their bank, versus 58% of credit union members. But the same study found members ages 18 to 34 actually trust CUs less than banks.
Brent Dixon, Young Adult Advisor at the Filene Research Institute, said credit unions hang their hat on service, but have not adjusted to the expectations and behaviors of a generation that grew up in a world very different from even 15 or 20 years ago.
"Young people take Google and Wikipedia for granted," Dixon said. "They cannot imagine not being able to simply go online and find something. This is a shift in perspectives."
So when a credit union hands a young, prospective member a large envelope stuffed with forms to fill out prior to joining the CU, there is a disconnect, he continued. After all, "it only takes seconds for someone to enter his or her e-mail address and sign up for Facebook. Giving young people a bunch of papers doesn't work."
Speaking of Facebook, many have suggested credit unions use social media sites to reach out to young people. If they have a presence on Twitter or Facebook, the thought process goes, then CUs will be "cool."
It's not that simple.
"Social media is used to say things. It is thought of as a cheaper alternative to traditional marketing. People think they can just do what they were doing before, but do it on the Internet."
While awareness and persuasion are important, Dixon said it is better for credit unions to demonstrate who they are through social media. They must "do things, not just say things," he counseled.
Collective Action
Many young people are graduating from college only to find no one is willing to hire them. Dixon said a number of twentysomethings are turning to entrepreneurship-opening up a door for CUs to provide guidance.
The common bond of the credit union, and its shared values, "have never been more important," he said.
"Credit unions cannot plan behavior, but they can coordinate it," he said. "Social media is best when used for collective action. If CUs only use the Internet the same as always, they are missing out on an opportunity."
CUs should start by making an attempt to understand the people they are trying to engage, anddemonstrate to youngsters why they should care, he said.
Equally important is measurements-which he said is an element many "let slide" when they make a foray into social media.
"Have goals, and have a defined length of time," he advised. "Be adaptable; no one gets it perfect the first time," he said. "It is OK to be wrong, just not okay to stay wrong. And if we don't do it, someone else will."
