MADISON, Wis. — An aging credit union membership and the accompanying need to attract younger members is a message oft-heard by CUs in the United States, but the World Council of Credit Unions wants to solve the issue globally.
According to a new guide WOCCU created to provide tips on growing youth membership, the average age of credit union members in most countries is mid-to-late 40s: in Canada the median age is 53, in Costa Rica it is 50, in Australia, the UK and U.S. it is 47.
"As these members approach retirement and deserve maintained loyalty and service, credit unions must expand their market to younger generations," WOCCU said, adding, "Credit unions should reassess their products, channels and messages to determine how they will respond best to the needs and preferences of the young adults."
Another part of the needed CU response, WOCCU continued, is determining ways to integrate access to payments, finance and commerce while providing crucial financial education. The Council pointed out Generation Y, while being the largest generation in history, is facing great challenges posed by the recent global economic recession. Factors such as unemployment, home prices, "alarming" levels of student debt and the rising cost of living make Gen Y "anxious about their future," the Council asserted.
"Credit unions are once again well positioned to be there when members need them most. Serving the Gen Y market while maintaining a solid bottom line is only part of the challenge."
Today the credit union community stands at 208 million members worldwide. World Council said it "challenges" the global movement to add 50 million new members by the year 2020. This goal, it noted, reflects the industry's ability to respond to consumer demands and collaborate to overcome common challenges.
"To achieve this goal, we will continue sharing the world's best practices to address Generation Y," WOCCU said.
The guide, as its cover proclaims, compiles an "array" of international examples on growing young adult membership, as shared by the credit union community during the 2014 World Credit Union Conference in Australia.
Examples Of Examples
According to the guide, one of the top strategies for attracting younger members is to provide core services online and via mobile.
"Convenience and ease of use primarily drive success in attracting young adults. They will use all channels for delivery of service: mobile, online, ATM and branch, with frequency of use in that order."
- WOCCU pointed out credit unions in Poland collectively own companies that provide expanded services and cost efficiencies to allow small CUs to implement programs that they could not otherwise.
- World Council's rural outreach program in Mexico uses technology to reach remote communities via "field agent banking." In some cases this involves motorcycles, smart phones and portable printers.
A second strategy involves leveraging payment services to meet expectations of convenience. WOCCU pointed out many young adults have more experience making payments than engaging in financial services. They often use commerce or payments systems, such as PayPal or Google Wallet, that substitute for financial services.
"When credit unions start offering online and mobile bill payment services their relationship with members becomes stronger and allows credit unions to introduce other financial services," the guide states.
Strategy No. 3: Design products for life transitions. WOCCU said life stages such as pursuing higher education, starting careers, getting married, buying a home or having children pose "opportunities to offer financial services that can support Gen Y through their life events and design products based on members' goals."
Differentiating by demonstrating social responsibility is a fourth strategy. The guide says Gen Y has a strong sense of community that aligns well with credit union values. Young adults prefer to belong to institutions with ethical reputations that pride themselves on "doing good."
Other strategies include using young employees as "ambassadors," having young members represented in CU governance, becoming more diverse — especially in areas or countries that have indigenous populations, and engaging on social media.
The guide can be downloaded from the "technical guide" section of World Council's online publication page:
