Did you know that millennials have embraced credit unions? Why is that important? Millennials are the largest generation in our history and with so many in this age range, the banking industry is taking a close look at what this group of young people is looking for when choosing a financial institution. While we know millennials love their gourmet pizza, online car shopping and free Wi-Fi, there’s one thing they don’t like and that’s banks.

The wants and needs of this generation are very different from those of past generations, and credit unions have spent time to really understand them. According to an FDIC survey, 30% of this generation don’t have a bank account because they don’t trust “banks.” An additional 25% think the fees are too high. So credit unions have done a wonderful job of promoting themselves as a great alternative for young people with these concerns. Here are some reasons why millennials have embraced these types of financial institutions.

Improved customer service

Credit unions have a reputation for being more customer friendly than traditional banks. Because they are generally a bit smaller, they are able to deal with their members on a more personal level.

lower rates

A 2018 Credit Union Verification Survey found that 82% of credit unions offer free checking accounts. While only 38% of banks offer free checks. These types of accounts do not have any transaction requirements to avoid paying a monthly fee. They also charge lower overdraft and ATM fees.

Lower interest rates

Most of the time they have better rates on savings and investment accounts. More than any previous generation, millennials keep more of their resources in cash, which means they need a safe place to put their cash where it’s safe from market fluctuations and get reasonable rates. Keep in mind that they not only offer better rates on savings accounts, but they also offer lower rates on credit cards and loans.

Financial Education

Millennials are looking to become more financially literate. Credit unions are eager to educate members to help them make good financial decisions. They often host seminars on a variety of topics to help members get a handle on their finances. These types of educational opportunities are often free and are generally not a pitch for any specific financial product.

community centered

They tend to have vigorous social responsibility programs that help the communities where they reside. This is very attractive to millennials.

easy to work with

Traditional banks can be perceived as heavy-handed, while credit unions are known for excellent customer service and an “easy to do business with” mentality. To keep up with the technology that the younger generation expects, they are offering simplified online and mobile banking experiences previously associated with the largest and most established financial institutions.

For the most part, millennials have a lot of school loan debt. They are not buying houses or cars. They are expecting families and are more interested in community service than a big paycheck. Above all, they are moving away from “corporate America.” That’s why Credit Unions meet your needs. They are nonprofit, community-focused institutions that resonate with young people trying to make this world a better place.