3 Conveniences Millennials Expect When Opening a Loan
Millennials are fast becoming the leading demographic for credit union lending solutions. They are prime candidates for mortgages as they move out from under their parent's umbrella and settle down in homes to start families. They are generally distrustful of big banks and are looking for alternatives to high-interest auto loans.
The number of Millennials banking with credit unions rose to 25 percent in Q1 2016, compared to 20 percent 3 years ago. More importantly, there is one thing millennials love almost as much as their phones: convenience. For this reason, here are three crucial components your credit union's lending solutions must have to stand a chance at capturing this emerging market.
1. Electronic/Mobile Signatures - Aside from the obvious improvements in efficiency e-signatures for credit unions provide, the convenience this feature brings to members is immeasurable. Thirty-six percent of homebuyers think the loan application process would be simpler if in-person meetings and phone calls with your credit union were eliminated completely, while another 68 percent feel electronic communication makes working with credit unions easier. For a millennial, who is used to doing everything on their phone, there is little doubt they will eventually demand e-signatures from any banking organization they use. Saving multiple trips to sign loan documents, when it can be done more efficiently over a mobile phone or PC is a benefit they will come to expect. Therefore, integrated e-signatures for all loan documents will become a must have feature to capture this market.
2. Mobile Lending - Millennials know what they want, and they want it now. Offer online applications, both through your internet banking portal, as well as through your mobile app. A millennial will appreciate the convenience of applying for an auto loan from an institution they trust while they are researching or test driving their next car. Providing mobile loan applications from within your mobile banking app will strengthen your lending strategy. Removing the need for multiple apps will provide your millennial members with the confidence they expect in your technology. Additionally, a unified mobile lending application will enable efficiencies in loan processing, as it will remove the need for your loan staff to re-enter data.
3. Automatic Payments - Ask a millennial how often they write a check? Paying bills is an inconvenience for everyone, and while online bill pay has assisted this effort, setting up autopay (think about it once and forget about it) is where real convenience lies. Offer the ability to customize automatic bill payments for members and provide access to bill pay through all technology channels, specifically mobile. Again, selecting a mobile app provider that can integrate bill pay will remove the need for multiple apps and increase member adoption.
Millennials have been called "the Convenience Generation" for a reason, and they are leading the charge for paperless banking. Credit unions know they need this generation, and the numbers prove that they stand to gain a lot from pursuing this market.