Connecting With Future Borrowers

From our sponsor, Transamerica

Competition is tough and connecting with prospective borrowers and savers is not easy. It seems that there is some type of banking institution on most corners, and there are even more non-brick-and-mortar lenders available online. Financial institution seekers definitely have their pick of establishments and rates. But what are they looking for?

According to a recent survey by GoBankingRates, after fee structure, the most important banking feature among financial institution seekers is the bells and whistles that come with online and mobile banking. The survey also revealed that age has a lot to do with banking preferences: 22.8 percent of respondents between the ages of 18 and 24 said they find online and mobile banking features most important--more than any other age group.

Establishing a relationship with the next generation of prospective members has become challenging.

Current research shows that Millennials aged 18-33 are not only tech-savvy, but also conscious about saving for their future. They normally prefer to shop online, bank online and research deals thoroughly. They want things fast, easy and now, and desire less human contact than the past generations of members you have served. A financial institution that wants to connect with this generation needs to provide the ease of completing all transactions, including lending, with just a few keystrokes.

How do you serve a generation of borrowers and savers that do not wish to have a personal relationship with their lender, when your entire business model is based on personal interactions with your members?

One way is by offering a mobile point of connection, such as that available through InterLend^® by Transamerica. While a Pew Research report found that Millennials typically feel disconnected from "traditional institutions," they do seek community in social networks and brand communities. So your CU's virtual lending platform will benefit from being very customizable as well as easy, fast and simple for borrowers to understand.

The Millennials have faced more student loan debt, unemployment and poverty than any other living age group. But in spite of this, they are optimistic. In the Pew report, more than eight out of 10 say they have enough money to lead the lives they want or expect in the future. It's just a matter of reaching them on their own terms.

Implementing virtual lending is a way credit unions can honor their organizational vision as well as the needs, preferences and buying behavior of prospective members, including the Millennials.

Brooke Strohman is VP/client management & technology services for Transamerica – Financial Solutions Group, where he's responsible for setting strategic direction and leadership for the company's insurance and technology divisions. His main focus is leading online lending and workflow solutions that are designed exclusively for credit unions and banks to automate product sales and delivery for account holders and prospective customers. Reach him at 800.365.4925800.365.4925 .

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