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July 11, 2011

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Roger Conant

7/26/2012 04:13 PM

Love the fact that a small CU can look "not so small" with an initiative like this. Well done!

Alexandra Gekas

7/26/2012 04:13 PM

I wouldn't disregard us completely! As a member of Gen Y, most of my friends are self-sufficient now and not living off their parents.

Also, I have been having conversations with a lot of friends and coworkers regarding credit cards, auto loans, and mortgages. Most of us have credit cards and want to get auto loans within the next 4 years. I know I am more likely to get a car loan from the same institution I have my credit card if the rates are right, so the possibility of growing a relationship is highly likely. We will be profitable members, just not immediately.

So don't forget about us. I think we are more than an experiment. We are here to stay and growing older by the day!

serge Milman | OptiRate

7/26/2012 04:13 PM

Marketing to GenY is a fantastic idea If the goal is to increase the number of accounts without regard to profitability. However, if a Credit Union is at all concerned about profitability, their ability to fund operations, invest in new / enhanced capabilities (including online banking, mobile banking, RDC, etc.), enhancing the dividend to members, etc., then marketing to Gen Y probably tops the list of the worst ideas.

Most GenY's - in fact - some 60%+ are supported by their parents for the most basic expenses (read: Exactly what kind of relationship do you expect to establish with a demographic that is essentially on welfare?

Most GenY are only interested / capable of supporting a DDA with a debit card - and we all know that most CUs (certainly all CUs with assets less than $1 billion) will lose money on this "relationship".

We all know that GenY is interested in the WOW factor (read: and my guess is that most CUs cannot deliver that today or anytime soon. Can your CU measure up to the wow! factor of BankSimple ( Be honest...

But even if a Credit Union could see past all of these obstacles with the objective of generating a huge profit when the GenY inherits wealth... well, I've got some bad news for you. A typical consumer maintains a banking relationship (yes, that includes a relationships with Credit Unions) for 3 - 7 years. 1st year accounts have churn rates of 20% - 40% and 10%-20% annually thereafter. By the time a typical GenY is in the position to inherit, (s)he will have moved her/his banking relationship a few times.

So, you still want to spend tens or hundreds of thousands of dollars to deploy technology, incurring marketing expense and the time of every senior officer in your CU? OK. But I suggest that you reserve a small amount of the marketing budget on acquiring profitable members, so that you can eventually pay for the GenY experiment.

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