Big, Small, or Online? Young Adults’ Evolving Financial Preferences
Does your Website double as a ‘sales prevention tool’? If so, you need to fix that … and soon. Researcher Rob Rubin uses a 1,400-response survey to tease out the preferences online consumers, particularly young adults, harbor for their financial relationships. Learn why ‘good service’ often simply means ‘suitable’ electronic service and how to prioritize your focus not just in online attraction but in online retention and engagement.
The survey reinforces several facts that, while long understood, should not be discounted. Among them:
- Convenience is an extremely important driver of institution choice. Paired with the difficulty of switching over existing accounts, it keeps a majority of consumers in place.
- Painful fees and uncompetitive interest rates turn off customers of big banks, but they are unlikely by themselves to drive many consumers out of the bank. Credit unions that fail to win over young consumers are doomed.
- Older consumers continue to be loyal to credit unions, but by 2020, Gen Y will dominate the workforce, comprising 40% of all workers—all of them in an important borrowing phase of their lives.
Read about author Rob Rubin’s work with credit unions here.