The Tipping Point : Generation Y Is Going to Change Everything

Jason Dias
November 9, 2004

Be honest, your kid showed you how to burn CDs. While the adult world got duped into worrying about Y2K, a technological revolution was occurring in public schools, libraries, and your kid’s bedroom. Now a generation that was using a computer before they were riding bikes is about to have a cultural impact on our fundamental way of working and living. That impact will be felt at E-Bay and Google, Levi’s and Nike.

Generation Y is around 70 million in population. If you have a child or know someone between the ages of 5 and 25, you may already be acquainted. Generally good economic times, instant access to news, friends, and family has created a techno-savvy, optimistic entrepreneur-in-the-making. The baby-boomers deserve the media attention paid to them over issues of retirement and its possible impact on social programs designed for older Americans. However, Generation Y has an equally vital role in the near future.

The Branch Is Back

Much has been made about this generation’s comfort with technology. However, like every generation before them, Gen Y is a social generation. And an abundantly mobile one. Yes, they will use your Internet services, but expect to see them at your branches as they make their way to and from school, work, and home. They also accompany parents who are not ready, or are not comfortable, using your online services. And they like their parents. Have information on student loans as visible as the rate you are paying on CDs. Your cross-selling should be cross-generational selling. Get the kids to tell Mom about free bill pay and get Dad to remind his kid that your credit union has auto loans for first-time borrowers.

Go Back to School

If there is a new school that has been built in your area, go visit it. Newer schools reflect the changes in tastes and trends. Public schools are designed to meet the needs of the 55-year-old science teacher and the eighth-grade class president. They have a mission, want to reach young people, and they are not for profit. Sound familiar? The new locations also give you a hint as to how our population is getting more suburban and affluent. Principals are happy to show off a beautiful new school and discuss the challenges of reaching young folks and managing a multigenerational staff. Take your marketing department on a field trip back to school. Let me know if Thursday is still hamburger day.

I Am Tiger Woods

Although they don’t talk about it much, they are the most multicultural generation in American history. It is their reality, but it is not their burden. Tiger Woods led the way as a visible, wealthy icon that resisted any mention of his multicultural background. He wanted the world to focus on his results, and it did. Generation Y has done the same thing. Their focus is finding prosperity and a balance between the necessary need to work and the enjoyable world of entertainment waiting at home. Whether they are members or employees, they carry with them a sense of confidence and optimism. They all know an African-American doctor, a Latino lawyer, and a female principal. They see a world of possibility and prosperity. Create a credit union that relates to this sense of opportunity. Don’t put younger members to sleep with promises of free checking. Any money you save them on fees, they are going to drop in the tip jar at Starbucks. They are not careless with their money, but they do spend it differently than their grandparents. At work, don’t subject younger employees to training that was designed before Windows 95. This generation has to know they are doing business with someone that understands them. If you are boring once, you may not get a second chance.

Generation Y represents the future of your members and employees. No single article can adequately cover the tremendous impact they will have on your business. If you have a generation gap between your board of directors and your marketing department, it may be challenging to find that necessary medium to meeting the needs of your entire membership. There are 70 million young Americans with a lifetime of borrowing, saving, investing, and personal and business banking needs. Credit unions have to address this demographic creatively, proactively, and urgently. After all, companies that waited too long, like Levi’s and Nike, may be living on borrowed time.

Jason Dias was the keynote speaker of the CUNA Operations, Sales, and Service Council Seventh Annual Conference in New Orleans this past September. His fresh and dynamic style ignited the conference and kicked off the first of three power-packed days of educational sessions designed just for OpSS members. This is but one example of the caliber of speakers and sessions you will experience at an OpSS conference. Don’t miss next year’s conference in Las Vegas on September 11-14, 2005. Contact Jason Dias at www.jasondias.com.