Woo millennials with digital options and personalization: report
Millennials expect better digital options, personalization and rewards when it comes to credit cards.
Luring in millennials members is only gaining in importance for credit unions. CO-OP Financial Services noted in a white paper released on Thursday that this demographic will represent 75% of the American workforce by 2025. CO-OP defined millennials as those born between 1981 and 1997.
“Credit unions are perfectly positioned to woo Millennials away from their banks due to their lower fees and the exceptionally high customer satisfaction scores,” the CO-OP report said.
Credit unions can entice millennials by being digitally savvy, the white paper found. Taking advantage of digital channels, such as email, texts and push notifications, is one way for a credit union to increase its engagement.
Personalization is also key. That includes tailored financial advice and guidance and uniquely designed credit cards decked out with decals.
Rewards is another factor to consider for credit card companies trying to reach younger generations. Seventy-eight percent of millennials reported that they applied for a rewards credit card between 2016 to 2018, according to research from creditcards.com
“While many credit unions struggle to transform digitally, now is the time to get on board,” the CO-OP white paper said. “Remember that younger generations who have grown up in the digital era represent the future and will gravitate toward digital experiences far more than older member cardholders.”