Gen Y Financial Services Presentation

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Information about Gen Y Financial Services Presentation
Finance

Published on August 17, 2007

Author: brassMEDIA

Source: slideshare.net

Description

Bryan Sims, 24 year-old CEO of brass|MEDIA Inc., speaks at a credit union conference about the importance of reaching Generation Y to the financial services industry. Sims outlines basic demographic information of Gen Y, provides statistics illustrating the difficulties in reaching them, shows the power of changing media and technology, while giving examples of how other financial institutions have successfully created programs that resonate with young adults.



brass|MEDIA Inc. is a multimedia and technology company that produces brass|MAGAZINE, a lifestyle money magazine written for young adults, by young adults.

Content provided in this presentation are the sole property of brass|MEDIA Inc. and shall not be used for reproduction or redistribution without the express permission of brass|MEDIA Inc. Bryan Sims, CEO

Understanding Young Adults Generation Y- defined as born 1978-1998 Teens and Young Adults influence $324 billion Spend over $100 a week typically Expected to inherit $17.8 trillion Over 30 times the size of CU industry assets

Generation Y- defined as born 1978-1998

Teens and Young Adults influence $324 billion

Spend over $100 a week typically

Expected to inherit $17.8 trillion

Over 30 times the size of CU industry assets

We have a serious problem

We have a serious problem

The Problem Average age has risen from 40 to 47 26% of 18-24 year olds belong to CUs Compared to 36% of the general population 1 in 8 CUs actively markets to 18-25 year olds Have ‘accounts’ not ‘members’

Average age has risen from 40 to 47

26% of 18-24 year olds belong to CUs

Compared to 36% of the general population

1 in 8 CUs actively markets to 18-25 year olds

Have ‘accounts’ not ‘members’

The Problem

 

 

Source: CUNA Research Services’ 2004 National Consumer Survey

Source: CUNA Research Services’ 2004 National Consumer Survey

Source: CUNA Research Services’ 2004 National Consumer Survey 22% 42%

What message are we sending?

What message are we sending?

Changing Times

 

 

Which would you join? Which would you join?

Which would you join?

Demographics

Demographics

Demographics 46% of total US population growth will come from 3 states, California, Texas and Florida By 2016 Florida will overtake New York as 3 rd largest state Minorities will make up 1/3 population by 2016 12-20 million illegal immigrants Hispanics, now 1 in 7, will be 1 in 4

46% of total US population growth will come from 3 states, California, Texas and Florida

By 2016 Florida will overtake New York as 3 rd largest state

Minorities will make up 1/3 population by 2016

12-20 million illegal immigrants

Hispanics, now 1 in 7, will be 1 in 4

Demographics Women make up 58% of undergrad population and this number is rising According to some studies, a woman born after 1980 is likely to take care of her mother longer than her own children Parents (baby boomers) will move in with single parents, due to aging population, increased housing costs, and need for child-care, creating 3 rd and 4 th generation family dynamics

Women make up 58% of undergrad population and this number is rising

According to some studies, a woman born after 1980 is likely to take care of her mother longer than her own children

Parents (baby boomers) will move in with single parents, due to aging population, increased housing costs, and need for child-care, creating 3 rd and 4 th generation family dynamics

Transfer of Assets

Transfer of Assets

Transfer of Assets Families and household relationships are key 82% of young adults whose parents had account have one Balances are almost twice as large 74% of parents more concerned about money, than “drugs or alcohol”

Families and household relationships are key

82% of young adults whose parents had account have one

Balances are almost twice as large

74% of parents more concerned about money, than “drugs or alcohol”

 

 

 

Entrepreneurship

Entrepreneurship

Entrepreneurship

Entrepreneurship Ebay 724,000 primary or secondary income 1.5 million supplement their income

Ebay

724,000 primary or secondary income

1.5 million supplement their income

Entrepreneurship Ebay 724,000 primary or secondary income 1.5 million supplement their income In processing interviews in New York City Family Court, kids still say they want most to be NBA basketball players.

Ebay

724,000 primary or secondary income

1.5 million supplement their income

In processing interviews in New York City Family Court, kids still say they want most to be NBA basketball players.

Entrepreneurship Ebay 724,000 primary or secondary income 1.5 million supplement their income In processing interviews in New York City Family Court, kids still say they want most to be NBA basketball players. The second most frequent response is "to be an entrepreneur."

Ebay

724,000 primary or secondary income

1.5 million supplement their income

In processing interviews in New York City Family Court, kids still say they want most to be NBA basketball players.

The second most frequent response is "to be an entrepreneur."

 

Socially Driven

Socially Driven

Charity/Social Drive $926 million- donations from 8-18 year olds in 2004 86% consumers say they are likely to switch brands associated with a good cause given all things equal 50% are willing to pay 5-10% more 58% of Americans will purchase products that donate a percentage to causes

$926 million- donations from 8-18 year olds in 2004

86% consumers say they are likely to switch brands associated with a good cause given all things equal

50% are willing to pay 5-10% more

58% of Americans will purchase products that donate a percentage to causes

Charity/Social Drive Target Guest Card- Customers donate 1% of purchase to local school of their choice On school web sites, “If you shop at Target, please consider designating Sanford Middle School as your choice for giving.” Target opened 11 million accounts and schools got $23 million

Target Guest Card-

Customers donate 1% of purchase to local school of their choice

On school web sites, “If you shop at Target, please consider designating Sanford Middle School as your choice for giving.”

Target opened 11 million accounts and schools got $23 million

 

Or maybe it’s lack of image

Or maybe it’s lack of image

Changing Media World

Changing Media World

Technology

Technology

Technology “ Members of the My Media Generation can fit up to 44 hours of activities in just one day…” -Yahoo.com

“ Members of the My Media Generation can fit up to 44 hours of activities in just one day…”

-Yahoo.com

Technology RSS- Real Simple Syndication Social Networking sites- MySpace Blogs (Web-logs)- Online journals Satellite Radio TiVo VOIP Cell Phones

RSS- Real Simple Syndication

Social Networking sites- MySpace

Blogs (Web-logs)- Online journals

Satellite Radio

TiVo

VOIP

Cell Phones

 

 

 

Technology 750,000 in 48 hours

750,000 in 48 hours

 

 

Picture Perfect Visa Credit – November 2005 8,447 accounts 7% increase in transactions 9% increase in balances 22% decrease in checks written Visa Debit – March 2006 10,021 accounts 13% increase in transactions 7% increase in balances 18% decrease in checks written

Picture Perfect

Visa Credit – November 2005

8,447 accounts

7% increase in transactions

9% increase in balances

22% decrease in checks written

Visa Debit – March 2006

10,021 accounts

13% increase in transactions

7% increase in balances

18% decrease in checks written

 

Source: comScore Media Metrix 7% 14,240 13,269 Total Internet Audience 14% 1,084 950 IRS.gov 22% 613 502 Wells Fargo 23% 872 711 Citigroup 23% 863 702 Capital One 69% 1,966 1,164 Bank of America 112% 478 225 Washington Mutual % Change February 2006 February 2005

 

 

 

16-25 w/o Billpay 16-25 w/Billpay

16-25 w/o Billpay 16-25 w/Billpay $4,053

16-25 w/o Billpay 16-25 w/Billpay $4,053 $14,792

Technology Not just technology…

Not just technology…

Young adults view physical branches just as importantly as Baby Boomers

Young adults view physical branches just as importantly as Baby Boomers

Physical/Virtual Apple Genius Bar

Apple Genius Bar

Physical/Virtual Umpqua Bank

Umpqua Bank

2006 Internet advertising is up 34% from 2005

2006 Internet advertising is up 34% from 2005

But….. … 10% to 15% of the advertising traffic is likely click fraud

But…..

… 10% to 15% of the advertising traffic is likely click fraud

More than 230 million Americans have cell phones

More than 230 million Americans have cell phones

But……

But……

But……

But……

Magazine circulation decreased 5.5% the past 12 months

Magazine circulation decreased 5.5% the past 12 months

But….if you drill deeper… Average Magazine Titles Read in Past 6 Months 19-24 year olds- 18.3 45-54 year olds- 16.7

But….if you drill deeper…

Average Magazine Titles Read in Past 6 Months

19-24 year olds- 18.3

45-54 year olds- 16.7

Meanwhile, 71% of 13-24 year olds still read magazines… … 58% of those said even if they can get the same information online

Meanwhile, 71% of 13-24 year olds still read magazines…

… 58% of those said even if they can get the same information online

Technology After calling automated telephone hotlines… … .. 73% felt customer rage

After calling automated telephone hotlines…

… .. 73% felt customer rage

ESPN Zone Restaurant ESPN Web Video ESPN Mobile ESPN Cable ESPN Magazine ESPN Podcast

WARNING: Don’t make the “young people are only online” mistake

WARNING: Don’t make the “young people are only online” mistake

Convenience

Convenience

 

 

Convenience Commerce Bank- “America’s Most Convenient Bank” CEO from retail, calls branches “stores” -Monday-Wednesday- 8:30-5 -Thursday & Friday- 8:30-8 -Saturday- 8:30-3 -Sunday- 11:00-4

Commerce Bank- “America’s Most Convenient Bank”

CEO from retail, calls branches “stores”

-Monday-Wednesday- 8:30-5

-Thursday & Friday- 8:30-8

-Saturday- 8:30-3

-Sunday- 11:00-4

Lending ‘ No credit’ is not ‘bad credit’

‘ No credit’ is not ‘bad credit’

 

 

 

Knowledge Centers

Knowledge Centers

Technology 70% college students “somewhat” or “very interested” in financial websites targeted to them

70% college students “somewhat” or “very interested” in financial websites targeted to them

 

 

Take Aways

Take Aways

Take Aways All departments, not just marketing

All departments, not just marketing

Take Aways New and/or rotating board members

New and/or rotating board members

Take Aways All aspects of media

All aspects of media

Take Aways Young adults ARE profitable 69% college students kept accounts at same institution Biggest increase in new homers were under 25 Lower cost of servicing

Young adults ARE profitable

69% college students kept accounts at same institution

Biggest increase in new homers were under 25

Lower cost of servicing

Take Aways Work in progress, never finished

Work in progress, never finished

Websites to check out www.earlyearners.com www.wesabe.com www.zillow.com www.espn.com www.coastalfcu.org/studentbanking www.umpquabank.com www.zopa.com http://blog.wellsfargo.com/StudentLoanDown/

www.earlyearners.com

www.wesabe.com

www.zillow.com

www.espn.com

www.coastalfcu.org/studentbanking

www.umpquabank.com

www.zopa.com

http://blog.wellsfargo.com/StudentLoanDown/

Questions? Bryan Sims CEO, brass|MEDIA Inc. PO Box 1220 Corvallis, OR 97339 541-753-8546 (office) 541-753-8548 (fax) www.brassmedia.com www.brassmagazine.com

Questions?

Bryan Sims

CEO, brass|MEDIA Inc.

PO Box 1220

Corvallis, OR 97339

541-753-8546 (office)

541-753-8548 (fax)

www.brassmedia.com

www.brassmagazine.com

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