"Think young" to attract `X' generation

TUCSON, Ariz. - There are big opportunities out there for tapping the "X generation" of tech-savvy young borrowers and investors, but credit unions need to better understand this generation's mindset and motivation, a CUNA Mutual marketing executive advises. Speaking at the annual convention of the Arizona Credit Union System, Delania Truly, channel marketing leader of CUNA Mutual Group, urged credit union managers to study more carefully the positive and negative nature of this 19-36 age group which she said account for 20% of the population but are the cornerstone of future CU growth. As new hires as well as new members, this is a group representing a tremendous talent and earnings pool because of their active use and comfort with technology. "Gen Xers' knowledge of technology and craziness of the modern world help them to think in ways not considered valid before," said Truly. This group, she noted, continually demonstrates an "independence" streak which must be dealt with carefully by top management. "They are very capable of producing results if conditions are right," she observed. Fifty-four percent of them have completed at least a year of college or are enrolled, and they are a prime market for future lending products. This is a group though that is also "in debt," she noted, citing the high proportion who use credit cards. Forty percent of this group, Truly said, invest in mutual funds and are overall "financially savvy." They are not intimidated by authority and continually look for "new challenges, skills, new information." As a rule, she said "Generation Xers" want opportunity, "not security" and on average, today's college grads will hold full time positions with at least seven different companies before they retire. She also said her studies found of this generation that "38% want to own their own business" and "Bill Gates is their hero." She also found that 52% believe that personal savings will be required for retirement. In addition, 19% have saved more than $50,000 for retirement compared to 33% for ages 50-plus. In hiring from this market, CUs will need to make the job "fun and interactive" making sure this group has "more control" of their destiny. This is a group, she said, that is "relationship focused" and the emphasis has to be on "value and not on products." -jamie7539@aol.com