For all the talk of member loyalty, there’s a surprising lack of focus on young members. No, not Millennials, who are turning 40, and no, not even Gen Z, who are in their 20s.
There’s a lack of focus on youth members. Young enough that they still do chores, get allowances, and might not think about saving or budgeting yet. We’re talking about financial literacy for kids…
And how credit unions can—and should—get involved.
Summary Points
- Member loyalty drives credit union growth and member retention. Beginning your relationship with members early in life improves loyalty.
- Educating and engaging youths may be key to attracting younger generations.
- Incent provides a platform for credit unions to bring in younger members and aid them with financial literacy.
The Power of Financial Literacy for Kids
I joined my first credit union at age 8. They sent me short comics and newsletters to educate me about savings strategies, budgeting, and even compound interest. They certainly didn’t make much money on me until much later, but…
My credit union taught me a good deal of what I knew about finances going into adulthood. I rewarded them with loyalty—and referrals to my teenage friends. I changed credit unions only after moving off to grad school without an adequate mobile banking app to support me there.
(Side note: Digital transformation is another necessity for member loyalty and winning younger generations.)
Give a kid a bank, and they’ll bank for a while. Teach a kid to bank, and they’ll bank for life.
Or something like that.
Teaching Financial Literacy Skills
It’s not the 80s or 90s anymore. Kids aren’t going to learn to bank by reading something on paper. But they’ll still learn from their credit union.
That’s where Incent comes in.
Incent is a financial education tool for kids. They can use your credit union’s core services without risk. Incent’s goal is to improve financial literacy in younger generations while improving long-term member loyalty at credit unions.
Some of Incent’s use cases include:
- Financial education. Incent offers basic financial literacy, such as saving, spending, etc.
- Cash for chores. Parents can pay their kids for doing household tasks.
- Paid for grades. Parents can reward their children for getting good grades in school.
- Parents can designate a recurring transfer amount to their kids’ accounts.
Parents can also control their children’s spending limits, approve or deny interpersonal loan requests, and more. The platform is flexible enough to cover most banking needs.
Notably, this all teaches kids how to bank responsibly with your credit union. Kids will be more likely to stick with your credit union as they become financially independent adults.
Next Steps for Credit Unions
Fintechs like Incent will ensure a great future for credit unions… if credit unions are on board.
Join our Fintech Call Program to learn about innovative and promising new brands and solutions in the credit union marketplace. Membership is free!
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