Jan 01 2005

COOL Solutions for Gen Y: A Guide for Credit Unions

Report  
Number  
121

Gen Y is a powerful demographic that can have a serious impact on your bottom line, whether your organization is a Fortune 500 company, bank or credit union. Organizations that are successful in meeting the needs of this market will enjoy short-term financial gains today and long-term loyalty tomorrow.

Mark Meyer
Mark Meyer
President + CEO
Filene Research Institute
Report Number 121

Executive Summary

This report is different from most Filene monographs and special reports. We relied on a variety of journalistic sources, excerpts and anecdotal information, rather than the typical academic research one might expect to find in a Filene publication. The reason for this departure is that COOL Solutions intends to provoke wide-ranging thought and discussion regarding an enormous opportunity in the form of a new generation of consumers just entering the financial services marketplace. The report assesses the young adult market, and then offers solutions through which credit unions can reach out to the largest generation of Americans ever.

What is the research about?

This report provides credit unions with a summary of key research findings from Filene and other organizations concerning:

  • Characteristics of what has been called Gen Y, ”the nexters,” ”the millennial generation,” and the children of Baby Boomers – the ”echo boom.”
  • Basic needs and wants of this market segment.
  • Compelling reasons for credit unions to attract and serve this market.
  • Case studies featuring organizations that have successfully served the millennials.
  • Best practices, pricing strategies, sample products, services and business models with a needs-based focus.

What are the credit union implications?

Earlier research by Filene reveals that teenagers alone spend close to $200 billion annually, and today’s youth market is even larger than the baby boom generation. Young adults have access to a tremendous library of information on products and services, and they use that information to become better shoppers. They understand their market power, and have raised their expectations. An investment today in serving young members will pay significant dividends in marketing core credit union products in the future. Attracting and serving the needs of this largest-ever generation of future borrowers is critical to the long term success of the enterprise.

This report is sponsored by PSCU Financial Services.