Credit unions are losing the war for millennials

Credit unions are losing the war for millennials

Article from: Credit Union Journal

The financial crisis was arguably the best thing to ever happen to credit unions. Many customers of big banks, fed up by the “too big to fail” bailouts, left to become credit union members and take advantage of more personalized, tailored financial services.

In the years since, the majority of those customers have stayed with credit unions. According to the 2018 FIS Performance Against Customer Expectations study, credit union members are far happier than customers of other banking providers, with 92 percent of members either “very satisfied” or “extremely satisfied.”

But, despite the last decade of member growth, credit unions are now facing a glaring demographic problem.

Half of credit union members are now age 53 and older. These are members who for the most part have gone through their home-buying and wealth-building phases and are approaching the slow draw down of assets in retirement, if not there already. While 31 percent of members are Generation X, a higher proportion than at other banking providers, they are the defectors who joined in the Great Recession and are likely sated more by credit unions’ not-for-profit ethos than by their strong performance.

  

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