their credit score. 57%
of Millennials indicated that they want to improve
• In the second quarter of 2022, credit card balances for younger people increased by 30%. • More than 40% of Gen Z and Millennials plan to apply for new credit or refinance existing credit within the next year. • 42% of Millennials would move their accounts to a different financial institution that is more engaged with charitable giving, triple the rate of Baby Boomers (born between 1946 and 1964). Despite the prevailing financial uncertainty — or perhaps because of it — banks and credit unions have an enormous opportunity to attract and secure these younger adult customers. In an ever-changing economy, credit cards are a key tool for financial institutions to connect with the younger generations as they grow into the life they desire. Products targeted to meet needs for milestones, such as college and homebuying, will help banks and credit unions build stronger relationships with these generations of customers. Gen Z and Millennials are also particularly interested in obtaining automated financial guidance or engage with virtual assistants to help manage their finances. They want a high-touch, personalized experience that delivers financial education on affordability (especially with homebuying), long-term savings plans and repayment modeling to help them better understand the implications of purchasing decisions. Overall, these customers want their financial institutions to clearly understand their financial pain points and offer solutions proactively. For example, 57% of Millennials indicated that they want to improve their credit score. Tailored experiences and credit card products will prevail over a generic menu of services. Credit cards offer many of the conveniences and services that Gen Z and Millennial customers want. However, connecting effectively with these cohorts, and winning their loyalty, involves a multi-layer approach. Successful strategies include: Presenting a brand that authentically mirrors their social values. The environment, along with diversity, equity and inclusion (DEI), are enormously
important to younger adults. Specifically, more than 40% of Millennials said they would switch financial service organizations to a company demonstrating a higher commitment to these and related causes. Offering a combination of high-touch and low-touch experiences . Whether digital or traditional, text messaging or snail mail, younger adult customers want to hear from their financial institution often, and they expect the outreach to be tailored. Social media also continues to resonate. Over a third of Gen Z customers reported learning about personal finance from TikTok, YouTube or other social media outlets. Integrating real-time and personalized services. Whereas cash-back rewards have been a standard, Gen Z and Millennials both respond to “in-the- moment” digital offers, such as free movie tickets, that incentivize a customer to open a credit card account on the spot. Gen Z customers redeem credit card rewards more frequently than all other age groups, and Millennials weigh a good rewards program as a higher priority than other generations. Gen Z and Millennial customers are looking for reasons to reward a financial institution with loyalty through timely, competitive services, targeted incentives and a demonstrable commitment to causes young adults care about. Whether your institution has an existing credit card program or would like to explore an outsourced solution, by partnering with Elan you obtain access to our expertise, tools and resources that minimize your risks and maximize your efforts to build long-term relationships. Learn more and view all sources in the full whitepaper here. ▪ About Elan Credit Card Elan partners with more than 250 credit unions and offers an outsourced credit card program for consumer and business accounts of all sizes. Our dedication to our partners, growth philosophy, and investment in evolving technology continues to make us a leader in the industry. www.cupartnership.com
Pre-register today and get the Super Early Bird Discount! Save big, and get a free upgrade to a Gold Pass, and pay nothing until next year!
PRE-REGISTER NOW
30 THE FINANCIAL BRAND INSIGHTS SPRING 2023
Powered by FlippingBook