Credit Unions 2.0: Where Innovation Meets Young Adults

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Credit Unions 2.0 Where Innovation Meets
Young Adults
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First things, first
filene.org/free/guestpass
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Our Guests

• Nan Morrow, Centra Credit Union (Indiana)
• Christopher Danvers, Delta Community
• Credit Union (Georgia)

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Who Said This?

• Lets be honest about it. In such changing times
  as these, we of the older generation are not
  equipped to tell the younger generation how to
  live. For the world in which we got our
  experience has passed away and it is up to you
  to learn how to live in a very different kind of
  world.

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Please Record Your Answer

• Edward A. Filene
• Simon Cowell
• Mick Jagger
• Hilliary Clinton
• Ronald Reagan

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Edward A. Filene

• Progress is the constant replacing of the best
  there is with something better still.

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These Changing (Credit Union) Times
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Credit Union Economics
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Credit Union Competitiveness
Credit Unions are a small, but constant presence
in the financial services industry. Credit unions
hold about 1.5 percent of household financial
assets as of September 2007, a market share that
hasnt changed significantly in over 25 years.
-CUNA
Credit Unions Share of U.S. Consumer Credit
Market
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Credit Union Social Trends
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Credit Union 2.0 Needs
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Innovation
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Why Innovation?

• Credit Unions were founded on Innovation
• It keeps the system moving forward
• Provides differentiation with other FIs
• Provides members with additional tools and
  options
• But, How do we keep Innovation
• OFF of the Back-burner?

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The Implementation Sabbatical

• Traditional format called for i3 to create the
  ideas and CUs to pick them up and Implement.
• Implementation was happening much slower than
  anticipated.
• Filene engaged their resources to focus on
  Implementation for a 6-month Sabbatical.
• What have we seen - CUs have no problem
  implementing projects, they just cant implement
  them all.

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i3 Ideas with Focus on Implementation

• Savings Revolution What happens when The
  Biggest Loser meets Financial Counseling?
• Prize-Based Savings Providing opportunities for
  non-savers where they can win, even if they dont
  get the prize.
• MatriMoney A Gift Registry at your CU. Allows
  couples to get money to use on bigger goals.
  Get a down-payment on a house instead of
  toasters and silverware.

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Charging to Implementation
Choice Endings
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Other i3 Innovations in the Pipeline

• Assisting members during Life Events - Marriages,
  Divorces, Sandwich Generation and Funerals
• FI Differentiation - CU Airport Lounges, Virtual
  Finance
• Helping members meet their Financial Goals -
  First Step, Financial Education, Product
  Packaging and Member Targeting

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Young Adults
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Crash Course On Gen Y

• Definitions vary, but born in early 80s late
  90s
• Thrive on individuality, but also seek
  commonality
• Grew up being told they were special
• Are digital natives
• Grew up with plastic and electronic funds
• Have loyalty issues (unless you are a brand)
• Dont want to work a desk job like their parents

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Crash Course - Individuality

• Thrive on individuality, but also seek
  commonality
• Commonality is culture or interest driven
• Race is irrelevant to most Gen Y
• Dont approach Gen Y with one message Identify
  subsets
• Each subset of Gen Y represents individuality

Enlightenment product adoption and relevance!
Message
Visuals, language, delivery channel should be
relevant to all of the below.
Technology
Producttechnology fusion a must.
Life Goals
Rich today, famous/well known tomorrow, an
activist, an entrepreneur.
Demographics
Socio-economical, life experience, geographic,
family unit,
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Crash Course Im Special

• Gen Y has American Idol Syndrome
• Baby Boomers fault for always saying You are
  the best
• Justification for the be famous/well known
  life goal.
• The real world a dose of reality for Gen Y

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Crash Course Digital Natives

• Gen Y is always connected
• Cell phones, TXT, mobile media
• Wi-Fi/broadband _at_ home
• Social networking/IM
• Grew up with the Internet when it was cool
• Has been exposed to more of everything because
  of it

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Crash Course Plastic People

• Gen Y grew up with the Check Card
• Grew up with credit as acceptable primary
  payment
• The term Checking Account is irrelevant
• ACH/A2A, bill pay through Online Banking
• Direct deposit for payroll
• Mobile commerce the next big thing?
• Separation anxiety when cell phone lost/broken
• Europe/Asia proving viability of mobile commerce
• P2P via mobile phones
• Contactless Cards in US paves the way

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Crash Course - Loyalty

• Gen Y have loyalty issues
• Witnessed 9/11
• Enron/Tyco/WorldCom scandals
• Sub-prime meltdown
• Broken pension promises to Baby Boomer parents
• Politics of the new millennium
• Gen Y isnt looking for a relationship
• Doesnt care about the movement like we do
• Has product driven needs
• Prefer to do it online
• Prefer someone else to do it if complicated
• This is why branches are popular for Gen Y

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Crash Course The Workplace

• Direct responses from 30 Under 30 group members
• A good boss who respects their abilities
• Quick upward mobility and career advancement
• Work/life balance (plus for CUs)
• A fair income
• Respect and autonomy
• Expect to be able to express individuality at work

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Serious Discussion