CUNA Mutual Group Proprietary

Reproduction, Adaptation or Distribution Prohibited

© 2014 CUNA Mutual Group, All Rights Reserved.

Presented by David Lockhart

Sales Manager, Lending Solutions

CUNA Mutual Group

Targeting Americas

Biggest Market.

Millenials

2

My Millenial

3

Hula Popper

4

The Demographic Driving Lending Disruption

Millennials:

• Are the largest population cohort in US history

• Will outnumber boomers 78 million to 56 million by

2030

• Are in their prime borrowing years

• Are 10 times more likely than boomers to consider

using P2P lenders

• Account for most of the traffic in digital banking

channels

• Are the most likely demographic to embrace mobile

payments

5

A S W I T H O T H E R

G E N E R AT I O N S,

FA M I L I E S A N D K I D S

A R E C R I T I CA L , BU T

M I L L E N N I A L S A R E

M O R E C O N C E R N E D

W I T H F IN A N C IA L

S TA B IL IT Y 60% report l iving

paycheck to paycheck

Source: CUNA Mutual Group Consumer Survey; 2015

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Wisdom of the crowd: Burning Questions, interconnected issues

7

Do you have a Social Media strategy?

8

BU T T H I S A L S O

O FFE R S A L A R G E

O P P O RT U N IT Y I N

T H E F I N A N C I A L

I N D U S T RY A S T H E Y

A R E E X T R E M E LY

O P E N T O A DV I C E

A N D G U I D A N C E

O N F I N A N C I A L

M AT T E R S

84% of Mil lennials

indicate they would

value advice or guidance

when it comes to

f inancial decisions

Source: What Matters Now: Insights from Millennials; CUNA Mutual Group; Feb 2016

9

How are you providing Financial Wisdom to Millennial's?

10

Millenials 1st Mortgage Reasoning

11

Engage members early…Win their CU Moment before they get to the dealership

Source:ThinkwithGoogle.com

12

Here are some ways to Target Millennials

13

What are folks aged 34 and under doing right now?

• Graduating College

• Launching into their first careers

• Streaming on their laptops versus paying for cable

• Trading in their rusty 1999 Buick Regal (which is now 18 years old)

• Finding the love of their life, getting married and combining checking accounts

• Having kids

• Buying their first homes

• Trading in their sports car for a mini van

• Seeking advice and guidance to set aside funds for retirement and kids college

• Starting their own companies

14

A c q u i s i t i o n o f M i l l e n n i a l m e m b e r s i s a c r i t i c a l

o b j e c t ive i n t h a t s o f a r, C re d i t U n i o n s h ave n o t

p e n e tra te d th e M i l l e n n i a l m a rke t we l l

of Millennials use a

credit union for their

primary account

of Millennials have any credit

card, investment or loan

through a credit union

14% 25% #1

reason Millennials don’t

use a credit union is that

“I don’t know much

about them”

Source: U.S. Yankelovich MONITOR; 2015

Source: What Matters Now: Insights from Millennials; CUNA Mutual Group; Feb 2016

15

Millennials FI Preference in the future

16

Don’t ignore Gen X…Reasons CU’s should focus on Gen X Moms

1. They have a brand loyalty rate of over 50%!

2. They use both traditional and new media

3. They have the most spending power

4. They are most influential in sharing brand opinions on Social Media

5. They are primetime in their income

6. They notice

7. They need help even though they are SUPER MOMS!

1717

Review

1818

Review

1919

Review

2020

Taken from PFS Body, 2013

21

Popular Fitness Apps

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Consumer Lending Strategies – Reduce Friction

REACTIVE

PROACTIVE

PREEMPTIVE

SIT AND WAIT o Initiated by Member

o Application required

ASK FOR THE BUSINESSo Promotions (seasonal or need driven)

o Targeted pre-approvals & pre-qualifications

o New account cross-sell (application required)

EMPOWER THE MEMBERo Comprehensive Pre-Screened Lending

(CPL)o NO Applications

o Perpetual loan approval

statuso Multi-product

o Omni-channel

o Member-centric

• Online applications

• Instant approval

• Rate competition

• Little differentiation

• Little/no competitive

advantage

• “Spray & Pray” marketing

initiatives

• Advertising & promotions

• Teaser rates & incentives

• Segmentation & targeting

strategies

• “Instant” applications w/ cross

sell

• Constant/consistent

messaging

• All touch points

• All direct channels

• Instantly actionable

response

23

Member Data = Opportunities

24

Consumer Personas at a Glance

25

26

Elements of Change

27

Questions

CUNA Mutual Group Proprietary

Reproduction, Adaptation or Distribution Prohibited

© 2014 CUNA Mutual Group, All Rights Reserved.

Thank you!

•David Lockhart

•CUNA Mutual Group

•David.lockhart@cunamutual.com

•608 665-7437