Introducing the Millennial

by CUNA Councils

The millennial generation is beginning to saturate the retail banking customer base, and it shows no signs of slowing.

As these potential credit union members mull their options for long-term financial partners, it will pay to get to know them now.

Also known as Generation Y, millenials were born between the late 1970s and early 2000s. They grew up in an age of technology and economic boom in the U.S. Naturally, they’re very comfortable with communication technologies and virtual environments.

Currently representing nearly one-third of American adults, according to the U.S. Census, millennials will have the most spending power of any generation by 2017. Today, they account for 9% of total transactions; within five years, it will be 40%. And by 2025, millennials will make up 75% of the workforce and will surpass all other generations in total earnings.

The most tech-savvy generation yet, members of Gen Y expect technological conveniences. Compared with baby boomers, millennials are:

• 15% more likely to let financial institutions’ websites and online communities impact banking decisions; and

• 29% more likely to try new technology-enabled tools.

Millennials are connected to their mobile devices. Of note, 31% of Gen Y reviews account balances more than eight times a month. Compared with boomers, millennials are:

• 8% more likely to use remote check deposit capture; and

• 33% more likely to use mobile banking functionality.

Millennials are driven by experiences, desiring consistency and efficiency in their interactions with financial institutions regardless of what channel they use. Despite their affinity for technology, they aren’t refraining from using traditional channels.

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