Foresight research: Gen Z and Millennials plan to switch financial institutions in droves – Good news for credit unions


/ EIN News / – Rochester, Mich., Sept. 09, 2020 (GLOBE NEWSWIRE) – 18% of Gen Z and Gen Y bank customers or credit union members plan to switch institutions main financial institution over the next two years. But, during the pandemic, that changed a lot. 27% of Gen Z are now considering change and a whopping 38% of Millennials are considering change. Imagine 4 in 10 millennial consumers leaving your bank or credit union. Who has the most risk – the large multi-site banks. Who will benefit the most – the credit unions.

Bad news for the current financial institution, good news for the competitors. Where do they go to find out about a new banking relationship? Most go to their secondary bank or credit union, and most have a secondary bank or credit union. So building a good defense is good business, but also consider that offensive moves are on the receiving side of the switchers.

In the race to attract these customers, banks and credit unions need a good marketing strategy. Understand what these customers and members are looking for in a new bank or credit union. Know the best way to target and communicate with these prospects. Know the role of things like – digital banking fees and services play in their decision. Are they dissatisfied, and if so, with what? To build a successful campaign, these questions must be understood.

More than 5,600 Gen Z and Millennials and clients were recently surveyed in 44 markets across the United States to find out what is important in choosing a new financial institution and how best to reach them. Then nearly 700 others were interviewed during the pandemic

So here are some things to chew on. More than one in four people want a free check and this is the number one thing mentioned in selecting their new primary bank or credit union. And that’s the most important criteria for both Gen Z and Millennials. Throughout it, you’ll find the basics of the banking experience: handling transactions with precision. Digital banking is coming but a little lower on the list. The pandemic is changing that somewhat – but not as much as you might think and when it does, online banking is mentioned more often than mobile banking. Don’t slack off on the digital bank but don’t panic either. But ultimately, interest rates, fees, and good financial advice are key parts of pandemic migration – and play into the hands of credit unions.

The big banks and credit unions have had this kind of information for many years. The result – more effective messaging, better use of the media, better staff training programs, better results. Now local banks and credit unions can compete on an equal footing with these new reports as a guide s- ATTRACTING GENERATION Z AND MILLENNIUMS TO YOUR BANK OR CREDIT UNION and THE EVOLUTION OF BANKING MARKETS IN THE COVID-19 ERA. Visit our website to learn more about these reports and others that are available. Because these reports are syndicated, you receive top quality research (with extra large samples) and the price is a fraction of comparable research.

Foresight Research is a market research firm and a leader in profitable syndicated market research and has worked with Fortune 500 companies for over 20 years. Call us, visit our website or email us to find out more.

Steve bruyn
Prospective research
248.608.1870 x 12
[email protected]

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