Don't Overlook the Overlap

I’m a young Baby Boomer. My son is a young Gen-Y teen. Like most teens he has a cell phone which he uses to send text messages instead of making standard calls. As a Boomer, I still like good old-fashioned voice conversations. Recently, I left my son a voice mail on his cell phone. No return call. I tried again a few minutes later. Still, no return call. I then sent him a text message. Bingo. Instantly returned text message.

So now when I want to reach my son quickly…I text. So what’s the point of this message? I believe that Gen Y is having a profound influence on their Boomer parent’s communication habits. They are pulling us into their world of communication vs. us pulling them into ours.

Ok, it's just one example and it's my kid. But now let me take it into the workplace. I recently did a little math. Third Degree is comprised of 5 Baby Boomers, 6 Gen X and 11 Gen Y. Gen Y has almost a 2 to 1 ratio over most of the other generations at Third Degree. These Gen Y's have been blogging, connecting via Facebook, MySpace and a host of other social networks too numerous to count for years. They receive their information daily – not from
newspapers, magazines or broadcast news, but from various RSS feeds with legitimate news and information. In fact, according to a recent Zogby Poll of 3000 respondents, 37.6% of respondents considered the Internet their most reliable source of news compared to just 20.3% who considered national TV news most reliable (Read Write Web, November 2008).

Third Degree recently launched a new Facebook page and creative blog. Guess who was among the first to sign up as fans? Surprisingly, the Boomers. Guess who is buzzing around the office interested in the latest social media tips, feeds, Facebook posts, etc. – the Boomers. Guess who is connecting to old college friends and spending several minutes if not hours each day updating, posting, searching, etc. on LinkedIn, Facebook, Plaxo and other social media sites? You guessed it - Boomers.

There is an interesting connection between these two generations. Perhaps it carries over from the parent/child or grandparent/grandchild relationship. But the two are converging online rapidly. And given that most credit union membership consists of Boomers today, there has never been a better time to cultivate the online relationship with both these generations. The transfer of wealth (or debt) from Boomers to their Gen Y offspring is not too far in the future. Let’s start laying the groundwork today to maintain control of those assets. According to a recent newsletter from Second Wind Network, Baby Boomers control over 75% of all us assets. That’s a lot of wealth that will transfer to Gen Y.

The question is, are credit unions taking the necessary steps to make a relevant connection? Now is the time to get aggressive and capture share. Don’t overlook the overlap between these two generations.

Food for Thought

1. There are roughly 77 million Boomers compared to 76 million Gen-y (some experts say 80 million). Gen Y is a large, influential consumer group full of “life triggers.”
2. The average 21 year old will spend $2.2 million in their lifetime.
3. 45% of college students are in credit card debt.
4. 18-24 year olds declaring bankruptcy increased 96% in 10 years.
5. Gen Y needs a responsible financial partner that is willing to serve them vs. sell them.
6. With credit union membership aging – credit unions need a new pipeline of financial product consumers in their “waxing years” vs. their “waning years.”
7. National attitude may be shifting away from traditional “banks.” What a great window of opportunity for credit unions.

Sources for Items 1-4: Better Business Bureau, Wall Street Journal, US Census Bureau, American Bankruptcy Institute

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-Roy Page - CEO and Founder Third Degree