Most statistics indicate Millennials now comprise about 25% of the total US population. That equates to roughly 81 million people. Millennial females make up about half that number, or around 40 million people. As the rise of the millennial generation continues, bank and credit union professionals must focus their efforts more specifically on its female component in order to establish firm market share in the future.
According to the recent article “The Millennial Mystique,” today’s young women do not necessarily share the same values and priorities that their mothers and grandmothers did. Rather, this generation of young women has a different set of values and expectations as it relates to work, money and life experiences. Several statistics from the article relate directly to millennial females relationship to their bank or credit union.
For example:
- 87% indicate they are not afraid to chart a different course than their friends
- 84% get excited when something is new or different
- 68% say managing their household is extremely important
- 78% say money is very important in their lives and is also the greatest source of dissatisfaction and stress
- 69% are actively saving for their future
What can bank and credit union professionals gather from the statistics? Plenty.
For example, since something new or different is important, if your financial institution has not rolled out a new product or service in the last 12 months, you are missing the boat when it comes to attracting Millennial females.
Also, with nearly 3/4 of this demographic sharing that managing their household is important to them, banks and credit unions must make financial education a priority in order to attract this population.
Lastly, with so many indicating that money is a continuing source of stress, banks and credit unions should look at this is an open door to combine innovative financial products and services with education in order to cement lifetime relationships with millennial females.
What works for Gen X and Baby Boomer women will not necessarily translate to success when applied to Millennials. Take heed of this generation’s unique financial needs and expectations to improve your financial institutions chances at success with them.
As a millennial female, your post resonates with me, Mark. I’d go a step further than saying it’s just about something being new or different – rather, I think it’s when there’s something that is an *improvement* to or over an existing product or service that could really get young women excited.
For example, a few years back, my primary FI got a fresh new mobile app. Though it was visually more appealing, and allowed mobile check deposit, it eliminated Bill Payer – and therefore a lot of its functionality was lost. As a result, any initial excitement I felt quickly dissipated. I use Bill Payer multiple times a month; I receive checks only a couple of times a year. Fortunately, an upgrade last year brought back Bill Payer without sacrificing any of the other features – and I can rest assured knowing I won’t miss a bill because I can schedule it on the go as soon as I get an alert.
If FIs focus *only* on providing new or different products without actually providing any added value or improved experiences, it may not get the intended ROI and risk alienating otherwise happy members. So I’d encourage FIs to be clear to themselves around *why* they’re introducing something new or different. How will it add value to members’ lives? If focusing on the Millennial Woman, how does this product or service better allow them to stay on top of their financial lives or feel more financially stable while pursuing their dreams and ambitions? Designing an engaging suite of products and services, paired with respectful education and resources as you suggest (especially if those are available on-demand), will make CUs a powerful ally in helping Millennial Women in their pursuit.
I’m excited that our needs are being recognized as different than preceding generations – and also as different from our male counterparts. Thank you!