Jan 01 2003
Attracting and Retaining Young Adult Members
Whether by choice or by chance, financial service providers have overlooked the potential of this important market segment. The birth-to-30 age group represents enormous present and future buying power, and a key component of credit union success in tomorrow’s competitive arena.
Today’s young people have access to massive information on products and services, and they use that information to become better shoppers. They understand their market power, and have raised their expectations accordingly. They are interested in and concerned about their financial future at an earlier age, buying homes whether married or single and responsible for 70 percent of new business start-ups. And they are concerned about carrying too much debt.
Perhaps most critical to the continued health of credit unions, lower penetration levels among these age groups are destined to result in a shortage of future borrowers, costing the average credit union an estimated $14 million in lost loans over the next 10 years.