Targeted Products for Each Generation

 

Generational Banking header image, a family posing together, showing children, parents, and grandparents

December 8, 2022 | Allied Solutions
Originally Posted in CUToday Quarterly

The youngest generation (Generation Alpha) to the oldest living (Silent Generation), and every generation between, have vastly different financial needs and expectations. To reach and connect with your current and future members, and offer the right product for their financial journey, it is important to anticipate what their needs are and will be and have a menu of products to fill those needs.

But who are the different generations? How do their values differ, and does it matter when it comes to selling products and services? Meet each generation, learn what they value, and which products your credit union can offer to meet their financial and lifestyle needs.

 

The powerful ones, Generation Z: This generation was the first to grow up fully immersed in a digital world. They hold significant buying power and will soon make up the population of insurance shoppers.

Value: Personalized experiences, social and ethical justice, authenticity
Member service preference: Chatbots, texting, social media

Target products for Gen Z:

  • Digital / electronic payment options
  • Cryptocurrency custody 
  • Buy now, pay later
  • Checking, debit, and credit card rewards
  • Home & auto insurance
  • Short-term loans
  • Student loan refinancing 
  • Unemployment insurance    
  • Savings accounts for lifestyle choices (i.e. auto purchases, weddings, education)

*It’s important to note that while younger generations opt for digital as their first touchpoint it doesn’t mean that they don’t value in-person connections.

 

The Influencers, Millenials: This generation has greatly influenced the workforce and economy, and is the first generation to be influenced by technology and social media. Older millenials came of age during the 2008 recession, making the current inflation and recession-like environment the second bout of difficult economic times this generation has faced.

Value: Convenience, flexibility, building wealth
Member service preference: Chatbots, social media, website, text

 
Target products for Millennials:

 

The In-Between, Generation X: This smaller generation situated between Boomers and Millenials are entrepreneurial in spirit and were greatly impacted by the cultural revolutions of the 70s and 80s. They were the first generation to be introduced to computers in both the home and classroom setting.

Value: Work ethic, autonomy, flexibility
Member service preference: Over the phone, website

Target products for Gen X:

  • Auto protection 
  • Checking, debit, and credit card rewards
  • Medical coverage and emergency 
  • Unemployment insurance 
  • Savings accounts for lifestyle choices (i.e. extra spending cash, auto and home purchases, home improvements)
  • Estate planning

 

The wealthiest, baby boomers: Many Boomers are retired, but those that aren't have great influence in the workplace. As a result of pursuing 'The American Dream,' this generation retains enormous buying power and is the wealthiest generation alive.

Value: Achievement, relationships, stability
Member service preference: Face-to-face, over the phone, website

Target products for Boomers:

 

The traditionalist, Silent Generation: The oldest generation alive is primarily retired. Because they grew up during a time of geo-political instability and the Great Depression, they tend to be more frugal and budget-conscious. They are also hesitate to try new technologies or adopt new processes.

Value: Work ethic, autonomy, flexibility
Member service preference: Over the phone, website

Target products for The Silent Gen:

 

Serving Each Generation While Increasing Product Sales

America’s youngest citizens are still being born daily. Credit unions can start preparing to serve this demographic with a savings account for future education.

Credit unions face the challenge of serving members from ages 13 to 75+ who all spend, but have vastly different reasons for why and how they are spending their money. 

Core values drive purchasing decisions. Each generations’ values might differ, but across every demographic your members want connection, value, and education. Connecting with each generation will be different, but knowing your members’ season of life, values, and goals will help educate them on which products will bring the most benefit. Staying needs-focused instead of product-focused will help build authentic relationships, laying the foundation for increased product sales down the road. 

 

 

About Allied Solutions

Allied Solutions is one of the largest providers of insurance, lending, risk management, and data-driven solutions to financial institutions in the US. Allied Solutions uses technology-based solutions customized to meet the needs of 4,000 banks and credit unions, along with a portfolio of innovative products and services from a wide variety of providers. Allied Solutions is headquartered in Carmel, Indiana and maintains several offices strategically located across the country. Allied Solutions is a wholly owned and independently operated subsidiary of Securian Financial Group.


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Content in the blog posts are the opinion and views of the writer, and don't necessarily reflect the opinions or views of Allied Solutions.

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