read

What Motivates Millennials to Switch Institutions?

For most community banks and credit unions, attracting younger, more profitable consumers is an important goal. And yes, setting that goal is the first step. But actually getting these Millennials through your doors can be a challenge — unless you know what they’re looking for.

In a recent study, commissioned by Kasasa® and conducted online by Harris Poll, Americans ages 18+ were asked about their perceptions of financial institutions, as well as the factors that influence where they bank and what they look for when seeking a new institution.

 

Millennials are about as likely to choose you as the megabanks

 

About 61% of Millennials who would consider moving their money to a new financial institution would consider a local community bank or credit union, and 63% would consider a large national bank. This means that Millennials are about as likely to choose you as the megabanks (who have a much bigger marketing budget!). You have the ability to win over this generation and tilt those numbers in your favor. But how?

 

Rewards Are Key

 

While 64% of Millennials would rather do anything than switch financial institutions, rewards give them a reason to make the change. Eight out of ten Millennials reported they would switch banks if one offered products with more or better rewards.

 

Eight out of ten Millennials would switch banks

 

So what are they looking for? No-fees banking is critical according to 93% of Millennials. They also want high-interest rates on checking, cash back on purchases, and ATM refunds.

 

Don’t Forget Technology!

 

We know that Millennials love technology, so it’s no surprise that 65% of Millennials reported they’d be more open to switching to a community bank if it offered mobile services, like a mobile app or mobile check deposit. And 77% would only consider a financial institution that offered online banking as well as in-branch.

Millennials reported they’d be more open to switching

 

This tells us that Millennials want to be able to manage their finances wherever they are. They’re looking for institutions that will be able to provide the digital experience they expect.

 

Change How You’re Perceived

With nearly a third of Millennials reporting they’d rather wait at the DMV than switch institutions, the combination of great technology and rewards is crucial if you want to change the way your institution is perceived by this generation. Around 51% of Millennials have never switched financial institutions, but if you can offer the products they want, you can change that statistic.

With our innovative products, world-class marketing, and dedicated resources, we can help your institution create a strategy that will attract and retain Millennials. Feel free to contact us to learn more about how we can help you create the experience Millennials are looking for.

Tags: Research