We read and hear a lot about Generation Y these days, and for good reason. Numbering an estimated 80 million, Gen Y is the fastest growing segment of the economy. In fact, VISA estimates that by 2030 Gen Y’s numbers will exceed the combined total of all other age groups.
Allow me to introduce myself: I am Gen Y. Like my peers, I have great expectations for the power of technology to improve my quality of life, including the ability to manage my finances. A bank branch – what’s that?
[Before continuing, some clarifying remarks. Most social commentators define Gen Y as the first generation of consumers to grow-up in a wired society. Also known as “Millennials,” the oldest among us is 34; the youngest 16.]
Gen Y is a mobile generation, and it shows in the ways we manage and spend our money. The Federal Reserve reports that 43.5% of consumers between 18 and 29 have used mobile banking in the past year, and 37.3% of us have made payments using our mobile phones or tablet devices. Among consumers in the 30- through 44- age group 35.7% have used mobile banking in the past year and 35.9% have made mobile payments.
But wait, according to the FDIC Gen Y is the most under-banked demographic in America. Nearly 4 out of 10 unbanked households are headed by adults under the age of 34; these folks use alternative financial services providers (such as check cashers) instead of financial institutions (like credit unions) where deposits are protected by federal insurance. In fact, less than 1 in 5 households with bank accounts are headed by a member of Gen Y, the FDIC reports.
Credit unions are exceptionally positioned to turn the tables on this trend, driving membership and deposit growth with innovative products like mobile deposit. That’s why I’m excited about the partnerships Cachet has forged with companies like Sharetec Systems and eDoc Innovations that make Cachet’s Select Mobile deposit application available to credit unions nationwide.
Convenience, simplicity and security are all hallmarks of Select Mobile. Credit unions benefit from a complete solution comprised of state-of-the-art technologies supported in real time with multiple layers of security. And for members making a deposit with Select Mobile, it is as simple as keying in the deposit amount, snapping photos of the front and back of the check and pressing “submit” all from a mobile device.
Mobile deposit is a fast growing phenomenon that no credit union can afford to ignore, as it is a great way to attract a new generation of members. Folks like me who want to manage our finances the same way we manage other important parts of our lives: anywhere, anytime, anyplace, on line and in real time using our smart phones and tablets.
Because Cachet’s Select Mobile is a Web-based solution, credit unions have loads of flexibility in terms of how they deploy mobile deposit. Plus with the marketing and backend support Cachet brings to each engagement, credit unions that chose Select Mobile can better attract new members who are younger and for whom the old, stodgy ways of banking are….well, old and stodgy.