What are young people really looking for from their financial institution? Gen Y, Millennials, Net Generation, Echo Boomers, Generation Next—no matter what label you give them, the fact is, credit unions are failing to attract the next generation of members. There is a decade-plus age gap in credit union industry. While the average age of a North American is 37 years old, the average age of a credit union member is almost 50. Credit unions are not replacing maturing depositors with young borrowers fast enough. But your credit union doesn’t have to fade into the history books. Learn how your credit union can understand and connect with young adults.

1. What do young people
want and need from their
financial institution?
Tim McAlpine
PRESIDENT & CREATIVE DIRECTOR
CURRENCY MARKETING

2. “
Although the average age of today's
population is getting younger, the average
age of today's credit union member keeps
creeping upwards. But credit unions can
remain young—in thought, service and
membership—by serving today's youth as
well as their aging membership.”
CREDIT UNION MAGAZINE,
APRIL 1969

3. 1
2
3
4
Gen Y and Z
Young adult staff
What young adults need
Young & Free learnings

4. • Founded in 1990
• Based in Canada
• 80% of business is in U.S.
• 100% credit unions

7. 30 and counting!

8. currencymarketing.ca/think

9. 1
What makes
Gen Y and Z tick?

10. Silent
1928-1945
Baby Boomers
1946-1964
Gen Y
1980-1996
Gen X
1965-1979
Gen Z
1997-Now

11. BABY
BOOMERS
GEN Y
GEN X
76
million
50
million
78
million
7 more years
left in this
generation
GEN Z
23
million

12. Average
age
UNITED STATES
CREDIT UNION
MEMBER
NORTH AMERICAN
The great
divide
35
48 54
CANADIAN
CREDIT UNION
MEMBER
SOURCE: CUNA, CUCC, U.S. CENSUS, WIKIPEDIA

13. 10
8
5
3
0
1989
17
1996
%
of the population is between 18 and 24
2000
2002
2006
4
%
of credit union
members are
between 18 and 24
2008
SOURCE: CUNA MARKET RESEARCH

14. BOOMERS
TRILLION
40
$
X+Y+Z

15. 98
%
of next gen inheritors CHANGE
advisors, and move away from
their parents existing banking
relationships
SOURCE: THE RUDIN GROUP

16. Y
anti hype technology confident spenders savvy cool goals college respect
planning influence truthful authenticity distrust forward thinking family
questioning quality media university wary friends fun world view connected
anti hype technology confident spenders savvy cool goals college respect
planning influence truthful authenticity distrust forward thinking family
questioning quality media university wary friends fun world view connected
anti hype technology confident spenders savvy cool goals college respect
planning influence truthful authenticity distrust forward thinking family
questioning quality cool truthful truthful confident savvy
GEN

18. Gen Y
‣ Follows Generation X
‣ Largest generation in history
‣ Born from 1980 to 1996 (17 to 33 in 2013)
‣ Socially conscious
‣ Distrust companies and media
‣ Could care less about credit unions!

19. Gen Y
‣ Entering and finishing college
‣ Finishing college and university
‣ Planning five years ahead
‣ Looking forward to relationships
‣ Confident but wary
‣ Practical world view

20. Gen Y
‣ Respect parents and education
‣ Shopping is an event, not a chore
‣ Raised on texting and IM
‣ Social networking is huge
‣ Open to spirituality
‣ Indifferent to Christianity

22. Z
anti hype technology confident spenders savvy cool goals college respect
planning influence truthful authenticity distrust forward thinking family
questioning quality media university wary friends fun world view connected
anti hype technology confident spenders savvy cool goals college respect
planning influence truthful authenticity distrust forward thinking family
questioning quality media university wary friends fun world view connected
anti hype technology confident spenders savvy cool goals college respect
planning influence truthful authenticity distrust forward thinking family
questioning quality cool truthful truthful confident savvy
GEN

24. Gen Z
‣ Follows Generation Y
‣ Born from 1995 to 2011 (2 to 18 in 2013)
‣ Smaller than Generation Y
‣ Only knows of a world with the Internet
‣ Faces a dismal economic picture

25. Growing up digital
‣ Constantly connected
‣ Phone serves as everything hub
‣ Internet access mostly via computer
‣ Still regular TV watchers
‣ Digital connections trump money, music, movies
‣ Reluctant to disconnect

26. Growing up digital
‣ Legally or not, Facebook is the place to be
‣ Constantly chatting, often online
‣ More at ease socializing online than offline
‣ Spenders first, savers second
‣ Sensitive to family’s financial situation
‣ Parents have mixed feelings about social networks

27. Growing up digital
‣ Both online and offline shoppers
‣ Parents usually pay online
‣ Tethered to parents for shopping
‣ Economic concerns weigh heavily
‣ Girls more concerned about war and crime
‣ Pessimistic about the near term

29. 2
Young adult staff

30. Typical staff
pictures

31. Typical board
pictures

32. Credit Union Central of Canada’s National Young Leaders Program
cucentral.ca

33. World Council’s Young Credit Union People (WYCUP)
woccu.org

34. CUES Next Top Credit Union Exec
ntcue.com

35. The Cooperative Trust
trust.coop

36. CU Water Cooler
cuwatercooler.com

38. Positive energy and a
palpable sense of frustration

39. “I’m out!”

40. “
I wanted to stay, but
I had to better myself.”
YOUNG MALE MARKETER WHO RECENTLY
LEFT A $90 MILLION CREDIT UNION FOR A
CAREER IN ANOTHER INDUSTRY

41. “
We see this huge opportunity to turn
this very archaic industry into
something huge, but we all see the
same brick wall from our credit unions.”
YOUNG MALE MARKETER WHO RECENTLY
LEFT A $90 MILLION CREDIT UNION FOR A
CAREER IN ANOTHER INDUSTRY

42. “We aren’t like our
parents, stuck in a rut
for our whole life.”

43. “
I wonder if the accessibility to information, the
mobility of the workforce and the global awareness
of a multitude of complex issues leads some of my
generation to say, ‘I’ve contributed to the tackling of
these financial issues; maybe I’ll tackle something
else for a while; the world needs me!’”
BEN IS AN ADVISOR AT $800 MILLION MENNONITE
SAVINGS AND CREDIT UNION, ONTARIO, CANADA

44. Mark Zuckerberg

45. Jack Dorsey

47. “My credit union
doesn’t behave like
a credit union.”

48. “
The bill of goods that has been sold to young credit union
professionals is that our model puts our members first
(and profits last). What’s hard to understand, however, is
why our response to the economic collapse has been so
similar to that of the banks we were told had business
models that were completely foreign to ours.”
MATT DAVIS, INNOVATION DIRECTOR AT
THE FILENE RESEARCH INSTITUTE,
MADISON, WISCONSIN

53. “I love credit unions,
but I can’t stand
my credit union.”

55. “
The reality is, many credit unions today have lost sight of
their original purpose of people helping people. They suffer
from the myopia of immediate stressors, the fear of change,
and can’t shake loose from the inertia of what has been. I
can’t tell you how many credit union employees I’ve heard
say, ‘I love credit unions, but I can’t stand my credit union.’”
BRENT DIXON, YOUNG ADULT RESEARCH
ADVISOR AT THE FILENE RESEARCH INSTITUTE
AND THE CREATOR OF THE COOPERATIVE TRUST

56. “We want to make
positive changes that will
push our industry”

57. Title here

58. “
In an industry that is already old-fashioned in many ways,
smothering our voice becomes a de-motivator. I think that’s
what causes people to leave it altogether. I believe in the
possibilities of what we can be, and that’s why I’m
committed to the movement.”
RONALDO HARDY, CEO AT $400 MILLION
LA CAPITOL FEDERAL CREDIT UNION, LOUISIANA

59. “I’m in for now,
but frustrated!”

60. “The saddest thing about the credit
union system right now is it’s
inability to articulate a vision.”

62. “
It is the responsibility of senior credit union leaders to
create a sense of mission or vision that can feed and
sustain the idealism. In Canada, this idealism has
essentially evaporated. Our credit unions operate
profitably and professionally, but our operations are
bland and undifferentiated as we navigate the unclear
cultural relevance of being a credit union.”
A YOUNG CANADIAN CREDIT UNION PROFESSIONAL IN HIS 30S

63. It’s not all doom and gloom

64. “I’m in for life!”

65. “
I have a voice and I see myself as part of the solution. My credit
union was the first to give me a shot right out of college. I was
handed the keys to a marketing department at the age of 24.
I’ve had an amazing opportunity to learn, try new things and
fail and grow over the past five years.”
MATT VANCE, MARKETING/COMMUNITY
MANAGER AT $139 MILLION INDUSTRIAL
CREDIT UNION, WASHINGTON

66. “
I have been allowed to bring some of my own innovation to the
credit union and run with it. This, added with my current role, has
provided me with a greater purpose and it has made all the
difference. It has allowed me to be more engaged, more committed
and wanting to do more for my credit union, along with providing me
with the motivation to do a better job in my current role. By being
provided with these types of additional opportunities and
responsibilities, I do believe I will be a lifer.”
DEVIN SELTE, CORPORATE TRAINER, LEADERSHIP
DEVELOPMENT AND CHANGE LEADERSHIP AT
$10 BILLION SERVUS CREDIT UNION, ALBERTA, CANADA

67. “My personal values
are so aligned with
the mission”

68. “
I don’t think age or size of organization has
anything to do with it. I think the fact that my
personal values are so aligned with the mission of
Vancity is instrumental and perhaps completely
unique. For me, that is the critical ingredient.”
WILLIAM AZAROFF, DIRECTOR, BUSINESS &
COMMUNITY DEVELOPMENT AT VANCITY,
$18 BILLION, BRITISH COLUMBIA, CANADA

69. It’s not about the money
‣ A credit union that believes in innovation and free thinking
‣ A superior who they respect
‣ A belief that they are part of something bigger than just
their own credit union
‣ Continued educational opportunities

70. More success ingredients
‣ A personal passion and purpose that aligns
with credit unions
‣ Room to try new things
‣ Opportunities for growth
‣ An obvious path for advancement

71. More success ingredients
‣ Flexibility on hours and location
‣ Casual environment
‣ Lack of politics
‣ Young credit union professionals appear to
thrive at larger credit unions

72. 3
What do young people
want and need?

75. Chris and his friends tell us
everything we need to know...

76. “
I need a bank that
tries to understand.”

77. Show you understand
‣ Explain the credit union difference
‣ Listen and show compassion
‣ Use straightforward language
‣ Offer tailored products and services
‣ Deliver plain-English financial education
‣ Provide do-it-yourself accessibility

78. 69
%
of consumers ages 18 to 24
are “not at all familiar”
with credit unions
SOURCE: CREDIT UNION NATIONAL ASSOCIATION’S (CUNA) 2011-2012 SURVEY OF POTENTIAL MEMBERS

79. 5
%
of Gen Y will consider a
credit union the next time
they need a financial product
RON SHEVLIN, AITE GROUP ANALYST
SOURCE: AITE GROUP ENGAGING GEN Y: CULTIVATING A NEW GENERATION OF BANKING CUSTOMERS

80. Free debit card for the ATM.”

81. Transaction products are very sticky
Offer free access to:
‣ Online banking
‣ Online bill-pay
‣ E-statements
‣ Offer relevant debit rewards

82. Your first credit card lasts
YEARS
15
ON AVERAGE

83. $
2,846
Average credit card debt
for a college senior

84. Characteristics of a responsible card
‣ Start with low introductory rate that rises steadily and
predictably
‣ Allow three over-the-limit or late-payment fees per year

85. Characteristics of a responsible card
‣ Link to a savings or investment account and offer
“overpay” option or cash back to savings automatically
‣ Share credit scores with your members regularly

86. Customization
First was
the traditional
flame job, which I
used to modify this
lame-ass card.

88. “
Swimming in debt
from student loans.”

89. In the past decade,
average student
debt levels rose by
over $10,000
$9,250
$20,000

90. By 2004, people under 25 were
the fastest growing group in
BANKRUPTCY DECLARATIONS

91. Student loans program
‣ Huge opportunity: A generation of well-educated and
disenfranchised young adults who need help
‣ Concentrate on consolidation
‣ Offer a lower-than-standard rate
‣ Communicate the benefits of one bill instead of many

92. “
I just bought a new car
that I can’t afford.”

93. First car loan
‣ Great opportunity to start long-term relationship
‣ In addition to credit score, evaluate on character,
capacity and collateral
‣ Bundle with checking account and require automatic
payroll deposit

94. “
A credit union is
where you need to be.”

95. Consumer Trust by Age
“How much do you trust the following entities with your money?”
BANK
18–34
35–54
14%
8%
CREDIT UNION
4%
22%
30%
55+
16%
Younger consumers trust
banks while older consumers
trust credit unions most
% calculation: Top 3 box responses
(“trustworthy”) less bottom 3 box
responses (“not trustworthy”)
SOURCE: MCKINSEY FINANCIAL INSTITUTIONS
CONSUMER INSIGHTS SURVEY, 2009

96. Education and technology are key
‣ Don’t assume young adults know or care about your
credit union
‣ Build trust over time
‣ Stress accessibility (shared branching and ATMs)
‣ Keep up to or ahead of your competitors’ technology

97. 63
%
of the population is
comfortable with making
payments on their smart
phone as soon as the
service becomes available
SOURCE: MASTERCARD

100. Checking my account at 2 a.m.”

101. Self-service is the new service with a smile
‣ Modern online banking system
‣ Mobile website
‣ iPhone and Android banking apps
‣ Personal financial management tools
‣ Remote deposit capture

102. “
Younger members want
mobile cheque deposit,
external account transfers,
online account opening,
instant withdrawal of bill
payments, cheque image
viewing, pending
transaction viewing, and
budgeting tools.”

103. Be aware of
new competitors

104. ONLINE BANKS
are your real future competition

105. 86
%
of online bank customers
said customer service is
the reason they would not
switch
ROB RUBIN, FACILITAS
SOURCE: YOUNG ADULTS EVOLVING FINANCIAL PREFERENCES, FILENE RESEARCH INSTITUTE

107. simple.com
moven.com

111. “The people you see here are outspoken fans of Virtual
Wallet – that's how we found them. To thank them for
spending a day talking to us about life with Virtual Wallet,
PNC offered them each a gift.”

115. AND OF COURSE...

116. And finally, don’t forget what
makes credit unions special

117. “
I need a place where
I won’t be ignored.”

118. 4
Young & Free
learnings

119. Launched
September 2007

120. Recognition
Credit Union Central of Canada
MAC Network Awards
• National CU Innovation Award
• Gold Award for market
segment program
• Gold Award for PR
• Gold Award for websites
• Best of Show MACQUEE
CUES Golden Mirror Awards
• 1st place coordinated campaigns
• 1st place segmented campaigns
• 1st place for PR
CUNA Diamond Awards
• 1st place for PR
Forrester Research
Groundswell Awards
• 1st place in the talking category
MAC Marketing Now Awards
• Winner video
• Winner blog
• Winner podcast
• Winner social media engagement
• Winner social media personality
MACU AIME Awards
• Gold AIME new product launch
• Silver AIME coordinated
campaigns
• Silver AIME radio
• Silver AIME websites
• People's Choice Award

121. “
JOSH BERNOFF
SENIOR RESEARCH ANALYST
CO-AUTHOR OF GROUNDSWELL
FORRESTER RESEARCH
You deserved to win.
You did a great job and just as
important, actually delivered
business value with your
application. The big companies did too, but your
application was more impressive based on the creativity
and the results delivered on a limited budget.”

122. Growth
2006
2007
2008
2009
2010
2011
2013

124. UNIVERSAL
PRINCIPLES

125. Make a big deal out of
everything

126. 29 surprise events to date

127. Don’t stand still

128. 2008

129. 2011

130. 2013

131. Fill the calendar

133. CONTENT

134. EVENTS

135. PARTNERSHIPS
CURRENCY MARKETING
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136. MEDIA
OPPORTUNITIES

137. Keep doing new things

143. 318 APPLICANTS

144. Inspire people to creatively
spread the word

146. Make yourself the center
of the local universe

148. Be ever present on and offline

151. Don’t dismiss
traditional media

152. Where did you learn
about this opportunity?
#1 Friend
#2 Radio
#3 Facebook

153. Spend as much time in the
community as you do online

155. Deliver on the promise
of financial literacy

158. Collaborate

160. 1
Understand Gen Y and Gen Z
2
3
4
Recruit and engage young employees
Offer relevant products and services
Integrate your marketing

161. Thanks!
Tim McAlpine
PRESIDENT & CREATIVE DIRECTOR
CURRENCY MARKETING