Gen Y Financial Services Presentation

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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.

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Gen Y Financial Services Presentation

  1. 1. 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
  2. 2. Understanding Young Adults <ul><li>Generation Y- defined as born 1978-1998 </li></ul><ul><li>Teens and Young Adults influence $324 billion </li></ul><ul><li>Spend over $100 a week typically </li></ul><ul><li>Expected to inherit $17.8 trillion </li></ul><ul><ul><li>Over 30 times the size of CU industry assets </li></ul></ul>
  3. 3. <ul><li>We have a serious problem </li></ul>
  4. 4. The Problem <ul><li>Average age has risen from 40 to 47 </li></ul><ul><li>26% of 18-24 year olds belong to CUs </li></ul><ul><ul><li>Compared to 36% of the general population </li></ul></ul><ul><li>1 in 8 CUs actively markets to 18-25 year olds </li></ul><ul><li>Have ‘accounts’ not ‘members’ </li></ul>
  5. 5. The Problem
  6. 8. Source: CUNA Research Services’ 2004 National Consumer Survey
  7. 9. Source: CUNA Research Services’ 2004 National Consumer Survey
  8. 10. Source: CUNA Research Services’ 2004 National Consumer Survey 22% 42%
  9. 11. <ul><li>What message are we sending? </li></ul>
  10. 12. Changing Times
  11. 15. <ul><li>Which would you join? </li></ul>Which would you join?
  12. 16. <ul><li>Demographics </li></ul>
  13. 17. Demographics <ul><li>46% of total US population growth will come from 3 states, California, Texas and Florida </li></ul><ul><li>By 2016 Florida will overtake New York as 3 rd largest state </li></ul><ul><li>Minorities will make up 1/3 population by 2016 </li></ul><ul><li>12-20 million illegal immigrants </li></ul><ul><li>Hispanics, now 1 in 7, will be 1 in 4 </li></ul>
  14. 18. Demographics <ul><li>Women make up 58% of undergrad population and this number is rising </li></ul><ul><li>According to some studies, a woman born after 1980 is likely to take care of her mother longer than her own children </li></ul><ul><li>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 </li></ul>
  15. 19. <ul><li>Transfer of Assets </li></ul>
  16. 20. Transfer of Assets <ul><li>Families and household relationships are key </li></ul><ul><li>82% of young adults whose parents had account have one </li></ul><ul><ul><li>Balances are almost twice as large </li></ul></ul><ul><li>74% of parents more concerned about money, than “drugs or alcohol” </li></ul>
  17. 24. <ul><li>Entrepreneurship </li></ul>
  18. 25. Entrepreneurship
  19. 26. Entrepreneurship <ul><li>Ebay </li></ul><ul><ul><li>724,000 primary or secondary income </li></ul></ul><ul><ul><li>1.5 million supplement their income </li></ul></ul>
  20. 27. Entrepreneurship <ul><li>Ebay </li></ul><ul><ul><li>724,000 primary or secondary income </li></ul></ul><ul><ul><li>1.5 million supplement their income </li></ul></ul><ul><li>In processing interviews in New York City Family Court, kids still say they want most to be NBA basketball players. </li></ul>
  21. 28. Entrepreneurship <ul><li>Ebay </li></ul><ul><ul><li>724,000 primary or secondary income </li></ul></ul><ul><ul><li>1.5 million supplement their income </li></ul></ul><ul><li>In processing interviews in New York City Family Court, kids still say they want most to be NBA basketball players. </li></ul><ul><ul><li>The second most frequent response is &quot;to be an entrepreneur.&quot; </li></ul></ul>
  22. 30. <ul><li>Socially Driven </li></ul>
  23. 31. Charity/Social Drive <ul><li>$926 million- donations from 8-18 year olds in 2004 </li></ul><ul><li>86% consumers say they are likely to switch brands associated with a good cause given all things equal </li></ul><ul><ul><li>50% are willing to pay 5-10% more </li></ul></ul><ul><li>58% of Americans will purchase products that donate a percentage to causes </li></ul>
  24. 32. Charity/Social Drive <ul><li>Target Guest Card- </li></ul><ul><ul><li>Customers donate 1% of purchase to local school of their choice </li></ul></ul><ul><ul><li>On school web sites, “If you shop at Target, please consider designating Sanford Middle School as your choice for giving.” </li></ul></ul><ul><ul><li>Target opened 11 million accounts and schools got $23 million </li></ul></ul>
  25. 34. <ul><li>Or maybe it’s lack of image </li></ul>
  26. 35. <ul><li>Changing Media World </li></ul>
  27. 36. <ul><li>Technology </li></ul>
  28. 37. Technology <ul><li>“ Members of the My Media Generation can fit up to 44 hours of activities in just one day…” </li></ul><ul><li>-Yahoo.com </li></ul>
  29. 38. Technology <ul><li>RSS- Real Simple Syndication </li></ul><ul><li>Social Networking sites- MySpace </li></ul><ul><li>Blogs (Web-logs)- Online journals </li></ul><ul><li>Satellite Radio </li></ul><ul><li>TiVo </li></ul><ul><li>VOIP </li></ul><ul><li>Cell Phones </li></ul>
  30. 42. Technology <ul><li>750,000 in 48 hours </li></ul>
  31. 45. <ul><li>Picture Perfect </li></ul><ul><li>Visa Credit – November 2005 </li></ul><ul><ul><li>8,447 accounts </li></ul></ul><ul><ul><li>7% increase in transactions </li></ul></ul><ul><ul><li>9% increase in balances </li></ul></ul><ul><ul><li>22% decrease in checks written </li></ul></ul><ul><li>Visa Debit – March 2006 </li></ul><ul><ul><li>10,021 accounts </li></ul></ul><ul><ul><li>13% increase in transactions </li></ul></ul><ul><ul><li>7% increase in balances </li></ul></ul><ul><ul><li>18% decrease in checks written </li></ul></ul>
  32. 47. 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
  33. 51. 16-25 w/o Billpay 16-25 w/Billpay
  34. 52. 16-25 w/o Billpay 16-25 w/Billpay $4,053
  35. 53. 16-25 w/o Billpay 16-25 w/Billpay $4,053 $14,792
  36. 54. Technology <ul><li>Not just technology… </li></ul>
  37. 55. <ul><li>Young adults view physical branches just as importantly as Baby Boomers </li></ul>
  38. 56. Physical/Virtual <ul><li>Apple Genius Bar </li></ul>
  39. 57. Physical/Virtual <ul><li>Umpqua Bank </li></ul>
  40. 58. <ul><li>2006 Internet advertising is up 34% from 2005 </li></ul>
  41. 59. <ul><li>But….. </li></ul><ul><li>… 10% to 15% of the advertising traffic is likely click fraud </li></ul>
  42. 60. <ul><li>More than 230 million Americans have cell phones </li></ul>
  43. 61. <ul><li>But…… </li></ul>
  44. 62. <ul><li>But…… </li></ul>
  45. 63. <ul><li>Magazine circulation decreased 5.5% the past 12 months </li></ul>
  46. 64. <ul><li>But….if you drill deeper… </li></ul><ul><li>Average Magazine Titles Read in Past 6 Months </li></ul><ul><ul><li>19-24 year olds- 18.3 </li></ul></ul><ul><ul><li>45-54 year olds- 16.7 </li></ul></ul>
  47. 65. <ul><li>Meanwhile, 71% of 13-24 year olds still read magazines… </li></ul><ul><li>… 58% of those said even if they can get the same information online </li></ul>
  48. 66. Technology <ul><li>After calling automated telephone hotlines… </li></ul><ul><li>… .. 73% felt customer rage </li></ul>
  49. 67. ESPN Zone Restaurant ESPN Web Video ESPN Mobile ESPN Cable ESPN Magazine ESPN Podcast
  50. 68. <ul><li>WARNING: Don’t make the “young people are only online” mistake </li></ul>
  51. 69. <ul><li>Convenience </li></ul>
  52. 72. Convenience <ul><li>Commerce Bank- “America’s Most Convenient Bank” </li></ul><ul><li>CEO from retail, calls branches “stores” </li></ul><ul><li>-Monday-Wednesday- 8:30-5 </li></ul><ul><li>-Thursday & Friday- 8:30-8 </li></ul><ul><li>-Saturday- 8:30-3 </li></ul><ul><li>-Sunday- 11:00-4 </li></ul>
  53. 73. Lending <ul><li>‘ No credit’ is not ‘bad credit’ </li></ul>
  54. 77. <ul><li>Knowledge Centers </li></ul>
  55. 78. Technology <ul><li>70% college students “somewhat” or “very interested” in financial websites targeted to them </li></ul>
  56. 81. <ul><li>Take Aways </li></ul>
  57. 82. Take Aways <ul><li>All departments, not just marketing </li></ul>
  58. 83. Take Aways <ul><li>New and/or rotating board members </li></ul>
  59. 84. Take Aways <ul><li>All aspects of media </li></ul>
  60. 85. Take Aways <ul><li>Young adults ARE profitable </li></ul><ul><ul><li>69% college students kept accounts at same institution </li></ul></ul><ul><ul><li>Biggest increase in new homers were under 25 </li></ul></ul><ul><ul><li>Lower cost of servicing </li></ul></ul>
  61. 86. Take Aways <ul><li>Work in progress, never finished </li></ul>
  62. 87. Websites to check out <ul><li>www.earlyearners.com </li></ul><ul><li>www.wesabe.com </li></ul><ul><li>www.zillow.com </li></ul><ul><li>www.espn.com </li></ul><ul><li>www.coastalfcu.org/studentbanking </li></ul><ul><li>www.umpquabank.com </li></ul><ul><li>www.zopa.com </li></ul><ul><li>http://blog.wellsfargo.com/StudentLoanDown/ </li></ul>
  63. 88. <ul><li>Questions? </li></ul><ul><li>Bryan Sims </li></ul><ul><li>CEO, brass|MEDIA Inc. </li></ul><ul><li>PO Box 1220 </li></ul><ul><li>Corvallis, OR 97339 </li></ul><ul><li>541-753-8546 (office) </li></ul><ul><li>541-753-8548 (fax) </li></ul><ul><li>www.brassmedia.com </li></ul><ul><li>www.brassmagazine.com </li></ul>

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