I’ll admit it; I’m not a seasoned blogger. I don’t spend time on YouTube… but I’m learning.
What I can tell you about is how important the 18-to-30 demographic is when it comes to addressing the challenge of membership growth.
Take a look at this – in 1985, 55% of credit union members nationwide fell within their prime borrowing years. This during a decade when credit unions experienced a 3.4% annual growth rate.
Compare that to 2006 – only 38% of members overall are in their prime borrowing years, and membership growth was only 1.9% for the first 6 months of 2006.
Addressing this decline isn’t getting any easier. A recent study shows that consumers now do business with an average of three different financial institutions.
For example, young adults looking for new car loans must navigate through more financing options today than in years past, often with little experience or knowledge of what they are agreeing to. Dealer financing, mega-banks, community banks, thrifts, and online lenders are just a few of the many options available.
And car buying is only one example. How does a young person know which option is best when it comes to purchasing a home or paying for higher education?
So, what can credit unions do to help 18-to-30s make the right decisions and gain them as members in the process? How do we make sure that a credit union is their only financial institution?
The CUNA board and I recognize that answering these questions is vital to addressing the issue of credit union growth and the future of credit unions.
In fact, the task force we’ve assembled to grapple with these affairs continues to make significant progress. They plan to deliver a final report to the board in March at CUNA’s GAC in Washington.
Of course, the task force is but one way to tackle the issue of membership growth. Undoubtedly creative thinking at credit unions and marketplace innovations will lead to new solutions for attracting the younger generation.
We’ll be looking closely to see what bubbles up. I’m encouraged by the fact that this is becoming so widely recognized as a priority. It will continue to be one of mine, I promise you that.
