Many industries are grappling with how to build loyalty amongmillennials, but perhaps none face as many challenges as thefinancial industry does. With an addiction to mobile and digitalservices, a voracious appetite for rewards programs and strongaversion to fees, Gen Y has left many financial institutionsscratching their heads.

As the industry triesto catch up to changing consumer demands, it's not surprising thatan Accenture survey of more than 4,000 retail banking consumers inthe United States and Canada showed 18% of millennials switchingfrom their primary bank in the previous 12 months.

While millennials want innovative and convenient ways to managetheir money, they are still concerned about the safety andsoundness of their finances, and they need help finding the happymedium. Credit unions should seize this opportunity to step in astrusted financial advisors to this segment.

In order to create raving fans out of millennials, credit unionsmust prove that they offer services that can't be found moreconveniently elsewhere, and that their technology meetsmillennials' standards and keeps their money safe. This isespecially important given Gen Y's propensity to select arecognizable brand name when it comes to banking; a BancVue studyfound 81% of millennials surveyed indicated a recognizable brandname is important, and 25% believe community institutions don'tdeliver the same level of benefits as their larger competitors.

To best overcome these preconceived notions, credit unions mustproactively develop a thorough, strategic and integrated plan thatcovers four key areas: Engage, communicate, educate andmobilize.

Here are 10 things credit unions can do now to attract andretain a Gen Y membership base:

Engage

Approach segments differently: Createtargeted acquisition and marketing campaigns based on specificmillennial behaviors and life stages.

Incentivize loyalty and deeperrelationships: Build robust loyalty and rewardprograms that provide Gen Y the cash back options they want. Theseprograms are also important in ensuring the credit union's cardproduct is top-of-wallet as millennials make the transition todigital wallets.

Communicate

Cross-sell: Use interactions to promoteservices they might not even be aware of, such as digital andself-service channels. The Accenture study revealed 75% of shoppersunder 30 are shopping for more than just a checking account – theyalso want a savings or money market account and 25% want a creditcard.

Provide alerts to help them avoidmissteps: Implement alert systems via text messagingand email that notify members when they are approaching anoverdraft situation or bill payment deadline.

Educate

Leverage data to differentiateservices: Use this data to provide criticalinformation about their financial status.

Offer a variety of financial managementtools: PFM technology is an increasingly effectiveselling point for millennials as they seek services that provideadvice and guidance. Carry educational offerings through digitalchannels and into the branch experience.

Help them plan for the future: Provideservices that enable them to maximize their assets as theyaccumulate them.

Mobilize

Blend technology and servicedelivery: Deliver a consolidated omnichannel solutionwhere millennials can handle their immediate banking needs, whilegaining an understanding of their financial picture.

Design product bundles: Pair services thatdeliver value and meet specific needs, such as convenience andon-time payments. These bundles should be built around transparentpricing, immediate funds availability, as well as linked offers andrewards.

Offer a comprehensive product set: Makesure that sought after products such as savings accounts, creditcards and prepaid cards are available and easy to find.

Deborah Matthews Phillips is managing director of paymentstrategy at Jack Henry & Associates. She can be reached at(972) 359-5163 or [email protected].