How well do you know today’s borrowers?
Have you noticed? The lending landscape has changed. Megabanks and FinTech challengers, like Sofi, are gobbling up the market. To get more consumers lending with you and not the megabanks, community banks and credit unions need to find new strategies to stand out. And that starts with understanding what consumers are looking for.
Take our assessment to learn how community financial institutions can take back the Millennial lending market. You might just find that some new opportunities are out there waiting for you!
In 2016 Millennials used credit cards for a whopping 37.3 billion transactions, which is up 10.2% from 2015. But you have some work to do when it comes to getting Millennials to have a credit card with you. Of the young Millennials who bank with a megabank, 42% have opened a credit card with that institution. In contrast, just 31% of young Millennials who bank with a credit union have a credit card from the credit union, and it’s just 4% among community bank customers.
In 2016 Millennials used credit cards for a whopping 37.3 billion transactions, which is up 10.2% from 2015. But you have some work to do when it comes to getting Millennials to have a credit card with you. Of the young Millennials who bank with a megabank, 42% have opened a credit card with that institution. In contrast, just 31% of young Millennials who bank with a credit union have a credit card from the credit union, and it’s just 4% among community bank customers.
It seems like there is always a new article about Millennials not buying homes, but, actually, the share of first-time buyers rose to 35% in 2016 (up three percentage points from 2015!). However, 16% of older Millennials are still using the megas for their mortgages, compared to 10% using credit unions and 7% using community banks.
It seems like there is always a new article about Millennials not buying homes, but, actually, the share of first-time buyers rose to 35% in 2016 (up three percentage points from 2015!). However, 16% of older Millennials are still using the megas for their mortgages, compared to 10% using credit unions and 7% using community banks.
Great news for you as a loan provider, but bad news for rush hour traffic. Nearly 80% of Millennials own cars and 75% of Millennials who don’t own a car aspire to own one.
Great news for you as a loan provider, but bad news for rush hour traffic. Nearly 80% of Millennials own cars and 75% of Millennials who don’t own a car aspire to own one.
According to an industry analyst report, 85% of Millennials said they’d select an institution that offered auto loan flexibility and faster payback capabilities. Does that change how you think about your loan products?
According to an industry analyst report, 85% of Millennials said they’d select an institution that offered auto loan flexibility and faster payback capabilities. Does that change how you think about your loan products?
Nice job!
After learning what consumers are looking for, it’s clear that competing on product superiority and innovation is one of the strategies you can use to take back market share.
Want to know more about what Millennials want from a loan today and how you can get them to borrow with you? Download this full report about lending trends from Cornerstone Advisors.