CONNECTING WITH YOUNG PEOPLE:
A Strong Future with the Right Strategy
Canadian credit unions should be optimistic about their prospects. They offer their members immense value from their products and services and continue to win various banking awards. The most important advantage credit unions have in adapting to the needs and wants of younger generations is flexibility. They are not as constrained as the banks in their decision-making processes and their structure is favourable to enacting timely reforms. Cooperation amongst cooperatives, as well as collaborative partnerships with Fintechs, the centrals and bodies like the LCUC will help position credit unions for success in the future.
As we saw in 2020 with the COVID-19 pandemic, there is a lot of uncertainty and the tables can turn at a moments notice. While digital acceleration and a frictionless experience was important prior to the pandemic, it has now become mission critical to credit unions and its importance to younger generations is unquestionable.
According to Annette Bester, Partner and National Credit Union Leader at MNP “Credit unions have a powerful story to share and they share values with millennials and Generation Z. We see momentum building and the market is ready for an alternative to the banks — one with a greater social cause and a commitment to ESG. Credit unions are poised to take ownership of this market.”
By combining strong and simple user experiences with customized products and services, credit unions can develop trust and positive touchpoints with younger segments. Small gestures that appeal to younger generations’ distinct lifestyles, aspirations, and life challenges can establish the awareness and trust necessary for a new perception of credit unions. Positive touchpoints will lead to greater uptake on higher-margin products in the future and support the continued vitality of the credit union system.
To accomplish both the short- and long-term benefits described in this paper, credit unions are encouraged to reimagine both their own identity and the unique needs, propensities, and preferences of the next generation. By incorporating some of the recommendations and concepts highlighted in this report, credit unions have an opportunity to address their demographic problem. It will not be easy, but innovation has always been in the credit union system’s DNA. The time to act is now.
Conclusion
Many credit unions are reluctant to adapt and respond to the new financial services environment, determined to hold on to legacy approaches to issues. However, the structures that enabled the credit union system to grow and thrive are inadequate to tackle today’s complex and dynamic marketplace. The market opportunity with younger generations is an essential one for credit unions to execute on and when empowered with the right tools, platforms and engagement strategies, credit unions are uniquely positioned to offer differentiated, member-centric services to a generation in search of their version of the Canadian dream.
Ready to boost your millennial acquisition? MNP has invested more time and resources into understanding credit unions and their dynamic landscape than any other firm in Canada. Here’s how MNP can help boost and retain membership with the millennial demographic:
Customer Journey Mapping
MNP can facilitate a customer journey mapping exercise and help credit unions pinpoint specific areas on the journey where they can optimize awareness and uptake of products and services.
Customer Data Platforms
MNP has helped numerous clients analyze their customer data in thoughtful and innovative ways, and has extensive experience implementing data analytics programs and intelligent customer data platforms (CDPs) across organizations of all sizes.
Strategic Planning
MNP collaborates with your leadership and team to create a strategy for attracting young people to your credit union, capitalizing on opportunities and ensuring that you stay ahead of the curve as you enter the next generation of financial services.
Technology Assessment
Digital transformation requires a multi-faceted approach. MNP’s technology team can support in any of the pillars of technology and help you assess your requirements in your digital transformation.
Managed Technology Services
Whether you have a large technology group or rely on outsourced providers, MNP is here to support or supplement your group as required to help you manage technology and ensure it is working to your competitive advantage.
ESG Reporting and Readiness
MNP is committed to upholding ESG principles as a firm and works with mid-market institutions across the country with their ESG readiness and reporting.
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