Millennials Lose Interest in Credit Unions as They Age
Millennials lose interest in credit unions as they get older, according to a new survey from FICO. 20% of Millennials age 18-24 said they use a credit union for their primary financial institution, but this was only true with 10% of Millennials who were 25-34 years old.
The older set of Millennials reported significantly higher probabilities of closing all accounts with their primary bank or credit union. In fact, they were two to three times more likely to completely switch banks than any other age group. The younger set of Millennials said they were attracted to financial institutions with better interest rates and low maintenance fees, which they have an opportunity to get with credit unions.
Millennials aren’t the only ones changing their primary financial institutions though. 49% of consumers who had switched banks said their main reason for leaving was high fees. Poor customer service and limited ATM options were also reasons mentioned.
Despite the loss of interest that Millennials display with credit unions, customer loyalty with these institutions remains high. Only 4% of consumers in all age groups said they planned on closing all their accounts with their credit union in the next year, compared to 14% who said the same about major banks.
Mobile app adoption seems to be higher among big bank accountholders compared to credit union accountholders. 64% of consumers with accounts at major banks said they used their institution’s mobile app, compared to just 42% of credit union users.