If you haven't heard the phrase “OK boomer” yet.... don't admit it to a teenager or young adult. It has become a common retort on apps such as Instagram, Twitter and most especially TikTok, where it's hashtag has been viewed more than 18 million times as a way to mock older generations for making outdated statements (such as not knowing what TikTok is). For teens and young adults, calling everyone older than them "boomers" is a retaliation towards adults in their life who refer to anyone younger as "millennials" with the negative connotations surrounding that descriptive. People don't like to be categorized with over generalizations... credit unions should remember this when it comes to talking to their members about new technology.

Not surprising, Millennials have different priorities and expectations from a financial institution than older generations do, according to a recent report compiled by a CA-based payments firm, Marqeta. Millennials, recognized as the first generation to grow up or come of age with digital technology like cell phones and the internet, are comfortable using modern technology, and have come to expect its availability for use in their every-day banking needs. Baby Boomers, on the other hand, place less importance on having the newest and most cutting edge tech, instead preferring a more personable and hands-on on approach in their banking. The challenge for credit union executives is how to service these divided members.

They have been called many things, from entitled to humble, hardworking to lazy, overly reliant on their parents while at the same time independent. Tom Brokaw even famously tagged them as "the greatest generation since The Greatest Generation." An enigma for retailers to attract and an adjustment for businesses to employ, Millennials (the generation loosely defined as those born between 1981 and 1996) have been simultaneously torn down and put on a pedestal by their peers and elders. But data doesn't lie. With over 56 million in the US workforce according to US Census Bureau data, Millennials make up the greatest percentage of employees today, and are proving that they are just as hardworking and perhaps even more balanced in their approach than generations before them. Hiring Millennials and keeping them happy and engaged at your credit union is heavily reliant upon the traditional motivators: money and benefits. However, what sets this generation apart when it comes to job satisfaction is the level of importance they place on purpose and technology... working for a credit union whose mission is in-line with their primary values, and one that provides them with the latest technology to get their job done efficiently are major factors in retention.

Non-bank competition is increasing with the rising popularity of mobile payment apps such as Venmo, Zelle and Square, just to name a few. Millennials and younger credit union members, in particular, have discovered the convenience of these apps and the ease with which funds can be exchanged and transferred. Using P2P (peer-to-peer) mobile payment systems, restaurant bills and bar tabs can be paid, pizza money contributed and concert tickets repaid with just a few clicks, all while never leaving the couch. However, with all this virtual money exchanging hands, should there be concerns these transactions are being adequately protected and secured?

According to a LinkedIn study, Millennials will change jobs an average of four times in their first decade out of college, compared to about two job changes by Gen Xers in their first ten years out of college. This in contrast to their parents and grandparents, who seemingly "stuck it out" for longer, with the mentality of "why leave a perfectly good job for an uncertain one." even if the promise of greater money and benefits was appealing. While the reasons for younger generations to job hop more frequently are not limited to just factors of pay and benefits, a study by Utah-based Thrive Communications found that over 20 percent of Millennials would actually quit a job if the employer did not offer fast in-office technology. Technology is such a central and crucial aspect of this generations' lives that businesses who do not adopt new technologies will not keep the hearts of younger generations for long. It is not so much a lack of loyalty as it is a shift in priority. For this very reason, credit unions who wish to attract and keep Millennial members must build a modern banking experience, and do it well. 

Baby Boomers were once the ultimate buyer, and the target market of banks and CUs, as well as industries across the board. Now, a new generation is soon to be the biggest player in the market: Millennials. This generation will become the largest group of first time home buyers, and by the year 2020, they will control $7 trillion of U.S. assets. Among all the generations, there is the biggest gap between Boomers and Millennials as their values, habits, and interests are very different. This has spurred a lot of change for businesses, as they need to adjust several facets of their operations to fit the needs of this new generation. It has reached the point where this change is inevitable, and those who ignore the needs of Millennials will lose out to the competition. Here’s how you can redesign your credit union to fit the needs of the ever elusive Millennial member.