Gen Y Financial Services Presentation

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

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’

The Problem

Source: CUNA Research Services’ 2004 National Consumer Survey

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

What message are we sending?

Changing Times

Which would you join?
Which would you join?

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

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

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”

Entrepreneurship

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

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

Entrepreneurship
Ebay
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

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

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

Or maybe it’s lack of image

Changing Media World

Technology

Technology
“ 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

Technology
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

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…

Young adults view physical branches just as importantly as Baby Boomers

Physical/Virtual
Apple Genius Bar

Physical/Virtual
Umpqua Bank

2006 Internet advertising is up 34% from 2005

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

More than 230 million Americans have cell phones

But……

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

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

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

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

Lending
‘ No credit’ is not ‘bad credit’

Knowledge Centers

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

Take Aways

Take Aways
All departments, not just marketing

Take Aways
New and/or rotating board members

Take Aways
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

Take Aways
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/

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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Gen Y Financial Services Presentation

by brass MEDIA Inc. on Aug 17, 2007

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Gen Y Financial Services Presentation — Webinar Transcript