FICO’s latest consumer finance trend survey has revealed that 20 percent of U.S. millennials aged 18-24 report using credit unions as their primary financial institution. This drops to only 10 percent in polls for ages 25-34.
For the second year in a row, the FICO survey showed the number one reason that consumers leave their primary financial institution is the perception of high fees. Credit unions earned high marks in the survey on overall trustworthiness among consumers, especially around the perception of providing greater transparency on fees. For millennials, fees are still the number one reason for switching, followed by poor customer service or ATM/branch convenience issues.
“Credit unions should market attractive rates and low fees to existing and potential members given how highly it rates in their consideration process,” said Schnoll. “In addition, credit unions can more intelligently manage debit and credit accounts by leveraging transactional data and behavioral patterns to help prevent attrition. This will enable them to make the best pricing cross-sell offers or fee-waivers for each customer.”
FICO’s survey revealed that there might be an opportunity for credit unions to win over 25-34 year olds, as the survey reveals that millennials are two to three times more likely to close all their accounts with their primary financial institution in the next 12 months. Read more at PRWire.