Why are Millennials so fond of credit unions?

 

Did you know that credit unions are popular among millennials? What is the significance of this? The millennial generation is the largest in history, and with so many of them, the banking industry is paying particular attention to what this group of young people seeks in a financial institution. Even though we know that millennials enjoy gourmet pizza, online auto purchases, and free Wi-Fi, there is one thing they dislike: banks.

Credit unions have taken the time to thoroughly grasp the goals and needs of this generation, which are vastly different from those of previous generations. According to an FDIC survey, 30% of this generation does not have a bank account because they do not trust "banks." Another 25% believe the fees are excessively expensive. Credit unions have done an excellent job of advertising themselves as a suitable choice for young people who are concerned about these issues. Millennials have welcomed these types of financial organizations for a variety of reasons.

Customer Service Improvements

Credit unions have a better image than regular banks for being more customer-friendly. They are able to engage with their members on a more intimate basis because they are often smaller in size.

Fees are reduced.

According to a 2018 Credit Union Checking Survey, 82 percent of credit unions offer free checking. Only 38% of banks provide free checking accounts. To avoid paying a monthly fee, these accounts don't have any transaction criteria. They also have lower fees for overdrafts and ATM withdrawals.

Interest Rates are Lower

Savings and investment accounts are usually offered at better rates. Millennials retain more of their money in cash than any previous generation, which means they need a safe location to park it where it is protected from market fluctuations and receives reasonable rates. Keep in mind that they not only provide superior savings rates, but they also have a cheaper credit cards and loan rates.

Financial Literacy

Millennials want to improve their financial literacy. Credit unions are happy to provide education to their members in order to assist them in making sound financial decisions. They frequently provide lectures on a range of topics in order to assist members in managing their finances. These types of training opportunities are frequently free and are not intended to promote any one financial product.

Dedicated to the community

They often have active social responsibility programs that benefit the areas in which they live. This is extremely appealing to millennials.

Simple to Work With

Credit unions are known for good customer service and a "easy to do business with" ethos, whereas traditional banks can be seen as stodgy. They are offering streamlined online and mobile banking experiences that were traditionally associated with larger, more established financial institutions in order to keep up with the technology that is required by the younger generation.

Millennials, on the whole, owe a lot of money on student loans. They aren't purchasing houses or automobiles. They are awaiting the birth of their children and are more concerned with community service than with a high salary. Most importantly, they are avoiding "corporate America." That is why Credit Unions are able to meet their requirements. They are non-profit, community-based organizations that connect with young people who want to make the world a better place.

If there's one thing allU.S. has in common with millennials, it's a commitment to enhancing the quality of life in our communities. allU.S. (https://alluscu.com) will continue to act differently from investor-owned financial institutions, and this distinction will yield significant benefits for both our members and the economy as a whole. Visit allU.S. Credit Union, a Positively Different Financial Institution!