Did you catch this infographic about smartphone app use on Mashable a couple of weeks ago? New research from Nielsen has revealed just how much app use has skyrocketed from 2011 to 2012. Among the findings:

• The average number of apps per smartphone has increased from 32 to 41.
• Time spent on apps vs. the Web has jumped from 73% to 81%.
• The number of Android and iOS users has taken a huge leap, from 38 million to 84 million.

How do these findings affect the credit union industry? Some CU-specific research provides more insight into the increase in smartphone app and mobile use and the implications this has for credit unions.

According to the “Measuring Social Media Success in Credit Unions” report from the Filene Research Institute:

• Overall, 15.5% of credit unions report that they have developed a smartphone app.
• About 21.3% of credit unions that use social media use smartphone apps.
• App use has increased throughout the year, with 13.9% of all credit unions developing apps.

And from CUNA’s 2012-2013 Credit Union Environmental Scan (E-Scan) Report:

• More consumers will use mobile devices to obtain loans, particularly younger members. The average age of a credit union member is 47, but the average age of users of CUNA Mutual’s Smartphone Loan technology is 29. In addition, completion rates for CUNA Mutual’s mobile loan application are more than 50%, compared to 40% to 50% for all Internet loan applications.
• In a survey of 450 credit union CEOs and senior executives, 48% listed mobile banking as one of their top tech projects for 2012. In addition, 39% prioritized mobile payments.
• While mobile payment transactions already total $240 billion annually, the market is expected to double or triple in the next five years, according to Juniper Research. By 2013, one in five cellphones worldwide will use near field communication (NFC) technology; by 2014, Google estimates that 50% of cellphones will use NFC technology.

It’s clear that mobile technology is booming, and an increasing number of credit unions are diving into the world of smartphone applications, mobile lending and mobile payments. Is your credit union developing new mobile technology or experiencing success with mobile tools? Let us know in the comments!

This post was originally published on CUinsight.com.

To pin or not to pin? As the popularity of Pinterest continues to grow, that is the question many credit union professionals are starting to ask.

If you’re not already familiar with the website, here’s a quick rundown: Pinterest is a social bookmarking website that allows you to collect—or “pin”—content from around the Web to personalized pinboards. The usefulness for credit unions might not be immediately apparent. After all, Pinterest is practically tailor-made for brands that specialize in fashion, cooking, housewares, and other visually oriented pursuits.

So do credit unions really have a place on Pinterest? I would argue that they do—if you give some deeper thought to your current and prospective members’ motivation before diving in.

But first, let’s talk about some statistics. In terms of numbers, it making more and more sense to have a presence on Pinterest because that’s where the Web users are. Check out these insights compiled by Monetate, a provider of digital marketing and optimization tools:

• Estimated unique visitors to Pinterest increased by 329% from September to December 2011.

• Pinterest is now driving more Web traffic than Google+.

• The top five tips for using Pinterest include promoting a lifestyle, using it as a focus group, crowdsourcing, running contests, and inspiring your team.

So what are some specific ways that credit unions can start pinning? The key is to tap into the goals of members, and show them how your credit union can play a vital role in helping them achieve those goals.

Think about it like this: Users typically use their boards as future inspiration. They might pin images of new cars, dream kitchens, vacation destinations, or splurge-worthy shoes. Do you notice a pattern here? Your credit union can help members work toward all of these goals. You just have to position yourself on Pinterest as their biggest financial adviser and cheerleader. Here are just a few ideas to get you started:

• Create a collaborative pinboard of potential savings goals, and invite other users to become contributors. Encourage them to pin content related to whatever they want to save money for, and offer advice and feedback through comments.

• Lots of pinners use Pinterest to find creative ideas for kids. Try creating a pinboard that focuses on projects or activities that teach children about money. Or, for something more lighthearted, create a pinboard dedicated to something quirky, like unique piggy banks. A quick Web search should reveal lots of fun images worth pinning.

• Use pins to direct members to specific areas of your website. But make sure you’re actually sharing content that will genuinely interest members. For instance, does your credit union maintain a blog or write articles for members? Pin attention-grabbing images or infographics that link back to your content.

As with any form of social media, getting started with Pinterest might be a trial-and-error process at first—and that’s perfectly okay. Don’t be afraid to try different approaches and strategies to find what works best for your followers.

Have you started using Pinterest for your credit union? Share your experience with a comment!

Full disclosure, I was born in 1979 so I guess I can technically be categorized as a Gen Xer.  But apparently my frequent texting, engagement across multiple social media channels and likely the fact that I was born at the very end of the Gen X timeframe align me much more with the characteristics of Gen Ys/Millennials.  Need further proof -I just scored 89 on this How Millennial Are You quiz (you should take the quiz too and let us know where you fall).  Anyway, it’s a fact – I’m totally a young 32!

At a planning session recently, that included a mix of generations but mostly Gen Ys and Gen Zs, our discussion led to identifying the things that make us pick one business over another.  More specifically, what are the things that make us not only choose to do business but love doing business with a certain establishment? 

Myself – along with the Gen Ys and Zs came up with the top 5 things that make that difference to us.  After our meeting I realized how much my credit union succeeds at these things and that’s why I love them.  So while the list is not exhaustive, I think there are some insights for you to consider as you work to not only lower the average age of your members – but evolve to a credit union that younger members fall in love with.

Please take a moment to view our slideshow for 5 tips for winning your younger members’ hearts.  We’d also love to hear what you think is missing from our list.  And if you’d like to share your Millennial quiz score - bragging rights will be awarded to the oldest commenter with the highest score!!

>When young adults enter the credit union conversation, the focus is typically on how to attract and retain them as members.

>There are only a few things I like better than eating lunch. One of them is sharing information and ideas with credit union folks about better serving/attracting young adults WHILE eating lunch.

And that’s exactly what happened this afternoon.

There were three “Lunch and Learn” sessions today, each with their own individual topic. Each addressed serving specific demographics–Hispanics, emerging markets, and young adults. And I was fortunate enough to facilitate the young adult session.

The 20 or so attendees were excellent. They shared ideas, frustrations, best practices, and a few laughs as we dove into almost all aspects surrounding credit unions and serving those just starting out in life. Our discussion lasted almost the entire hour and thirty-minutes and (luckily) ended before the after-lunch energy lull kicked in.

During the session I jotted down some notes and thought I’d share them with you… see below!

>As credit unions have started to confront the decline in young adult membership, most of the conversation revolves around getting new members through the door.

>Recent news, and a smattering of blog posts, indicate that mixing real-time money management with personal finance tools has become somewhat of a reality.

Delta Community Credit Union and Wesabe announced a partnership on Apirl 28th to deliver Wesabe’s Springboard^TM to DCCU members. Springboard, as the press release explains, “… gives consumers a “smart” dashboard view of their account data and personal finances – guiding them towards value, savings and goal completion, and away from poor financial decisions.”

I’m not familiar with exactly how DCCU and Wesabe’s new toy works or how good the tools and personal finance information really are. But it sure sounds as if the partnership will address two major issues that are important to young adults like me.

1. Ease of use – Budgeting software and other money management tools can be very complicated and difficult to use. (This is a major reason we developed EasyBudget for MoneyMix^TM… to simplify budgeting for young adults.) Often times budgeting software contains confusing options, loads of irrelevant input fields, and unfamiliar jargon.

   Human error also makes things interesting. In my experience using budgeting software, I’ve often wondered if I’ve entered the correct information and how accurate projections really were. I’ve also experienced the joy of watching errors pop up as I reconcile the software with my online account… not a good feeling after painstakingly entering in your information.

   The solution here is to offer simple instructions, relevant guides, and pull account information directly from the credit union. My understanding is that DCCU & Wesabe’s collaboration will make this happen.

2. Accessible to me - I’m part of the Gen Y crowd that’s “always” connected to the internet (remember, not all of us are internet junkies). Online banking has always appealed to me. Even though there haven’t been any security breaches yet, I’ve never really trusted online budgeting Web sites… I’d prefer to keep my finances firmly planted behind the firewalls of my credit union.

   A partnership such as DCCU and Wesabe engenders trust because, as far as I’m concerned as a user, the tools are part of the credit union.

   Even if I were to use a site to help manage my finances, I still need to log into my account and make adjustments. Integrating my online account with personal finance tools means I’m more likely to actually do what the tools suggest. I’m one step closer to clicking a button and acting upon my decision.

So, Springboard sounds great on paper and there’s a lot of potential. I’ll be anxious to hear how well this works for DCCU. I certainly applaud them for offering the service to their members. It’s the kind of service that will appeal to young adults and impact other demographics as well.

At the very least this partnership demonstrates that integrating real-time money management with personal finance tools is possible, and it’s only a matter of time before someone perfects it.

>In the April 3 issue of Engage:Gen Y, “a newsletter dedicated to exploring this exciting demographic made up of individuals ages 18 to 30,” Chip Walker celebrates the admirable uniqueness of capitalism’s favorite demographic.

In the course of this paean, Walker makes some extraordinary generalizations, which readers might be forgiven for mistaking for claptrap. For example, how does this claim:

“Among GenYers’ most important personal values are authenticity, altruism and community.”

Compare with this statistic?

Volunteers by selected characteristics (age), September 2008

U.S. Bureau of Labor Statistics Division of Labor Force Statistics

Looks like the under 35s have the worst record of any age group for service to community. Sure, it’s only one measure of altruism, but I have to wonder if Gen Y is as adept as “self-mythologizing” as the notoriously narcissistic Baby Boomers.

Walker claims that Gen Y’s penchant for activism is different from that of their over-the-hill parents. “For today’s Gen-Yers, activism is not about rebelling against institutions — there’s simply not that much left to rebel against.”

What? With daily revelations of corruption at the highest levels of government and corporate leadership, Gen Y can’t find enough injustice to get up off the couch to protest? (Or did the Boomers clean everything up?)

Finally, consider this: “Gen Y-ers don’t just want to buy brands, they want buy in to what a brand believes in.” That kind of gullibility just means we can look forward to replenishing the pool of prospective Ponzi victims in the future, when the materialistic and self-deluded Boomers finally step aside.

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Happy Friday everyone! I recently ran across some interesting reads and want to share them with everyone. These links are to articles on various young adult and Gen Y topics from around the world.

Check them out…

• Here is a rather gritty opinion piece from a Gen Y’er regarding the stereotypes associated with our generation.
  Baby Boomers Beware: Gen Y knows what’s up
  The Voyager – Pensacola,FL,USA
  I’m tired of getting discriminated against for my age. Everywhere I go, all I hear is, “Your generation is so lazy,” or, “Everyone your age is pale and fat …

• From our friends in Canada, this article offers info on how young adults can cope with the current economic situation.
  How does GenY cope amid such a turbulent economy? Save, save, save
  The Canadian Press – TORONTO
  TORONTO — Generation Y has by now moved beyond the allowance years, their financial concerns ranging from university tuition to mortgages and RRSPs.

• This article comes to you all the way from India. It discusses a “new breed” of consumers, and how brick and mortar institutions use technology along with digital strategies to make the most of my generation.
  FMCG firms in digital mode to woo Gen Y
  Khabrein.info – New Delhi,Delhi,India
  Bengaluru, Oct. 23: The digital economy has spawned a new breed of consumers who choose how or when to engage with a brand that is trying to woo them. …
  
  
• Penelope Trunk, better known as the Brazen Careerist and author of a book bearing the same name, blogs about how Gen Y will change the workplace when we’re at the helm.
  3 Ways work will change when Gen Y is in charge
  Brazen Centrist – USA
  In ten years, Gen Y will have taken over middle management. Maybe in five years, if my own office is any indication. But I am sure that Gen Y will run the…

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I just finished preparing a presentation for the upcoming Lending Council Annual Meeting (insert shameless plug here.) As I was doing my research for the presentation, I ran across the article, Building Members from Indirect Borrowers in the Idaho Credit Union League’s August 2007 newsletter that peaked my interest.

The article covers a portion of CUNA Mutual’s Discovery Conference in 2007, where Bill Jolicoeur, vp and executive product leader at CUNA Mutual, discussed the opportunities indirect lending presents to credit unions since roughly 40% of existing loans in 2007 were made to indirect borrowers.

It’s tricky, of course. As the article points out, these members don’t switch over to other services easily… either because they are wed to their existing financial institutions and/or they don’t know that your credit union can do more for them.

But Jolicoeur suggests that the opportunity really lies in what he calls, “data mining,” according to the article. Data mining is essentially taking a look at the indirect borrower’s financial information and targeting messages for products and services that meet their needs, like loan consolidation. Here’s Jolicoeur’s point…

“Data mining allows you to look at what they have outstanding,” said Jolicoeur. “You have to be able to show them there’s a really good shot at helping them financially.”

I’d like to take this a step further. I think indirect borrowing offers an incredible opportunity for credit unions who want to better serve 18-to-30s.

When it comes to attracting young adults, making the most of every opportunity is just as important as relevant ad campaigns, messaging, and Web sites. In this case, the opportunities are presented through indirect borrowing & Jolicoeur’s concept of data mining.

Many of these indirect borrowers are entering their prime borrowing years, and the credit union has an opportunity to examine their info to determine where the credit union can help. Once that’s established, it’s a matter of developing your relationship with these new-found young adult members and proving to them that you have what it takes to meet their needs. Follow up with a phone call, relevant messaging, maybe even point them to your Web site if it has the right information presented to meet their needs and answer basic questions.

No, it’s not simple. No, it’s not the “silver bullet” most folks are looking for. It is, however, another tool in the credit union toolbox for better serving young adults.

Thanks to copyblogger for the cool pic