There is a perception in thefinancial services arena that Gen Y consumers are predominantlydigital bankers, whipping out their mobile phone or grabbing theirtablet whenever they need to access their accounts or make atransaction. In reality, this is only part of the picture.

While Gen Y consumers, ages 21 to 34, are leading the digitalrevolution with mobile and tablet usage, they are not abandoningthe traditional, higher-cost channels such as branches and callcenters. In fact, they continue to be the highest users of highcost channels.

This simultaneous desire for both digital and traditionalchannels frustrates credit unions and paints Gen Y consumers as“high maintenance.”

The 2012 Fiserv Consumer Trends survey investigated what mightbe behind this heavy use of traditional channels by seeminglydigitally savvy Gen Y consumers.

When asked why they visited a branch, the overwhelming majorityof the respondents – across all ages and income levels – said thatmaking a deposit or depositing cash was the primary reason fortheir branch visit. However, significant generational differencesemerged in other areas. When compared to Boomers and Seniors, Gen Yconsumers were:

• 300% more likely to have gone to a branch to obtain a cashier'scheck or money order
• 270% more likely to have gone to a branch to open or close anaccount
• 233% more likely to have gone to a branch to change accountinformation (like their name) or to have gone to a branch to signpaperwork
• 200% more likely to have gone to a branch use a notary

So are Gen Y consumers really high maintenance? Or are theysimply in a season of life in which they are far more likely tomake major financial purchases and decisions, get their first job,start managing their money more seriously, move and get married,occasions that prompt branch visits to obtain cashier's checks,open or close accounts, or access notaries.

The answer is probably a mix of both.

Gen Y consumers span a wide range of life stages. According tothe U.S. Census Bureau, the average age at the time of firstmarriage for women is 27 and for men is 29. So, while the youngestGen Y consumers may still be in college or living with mom and dad,many others are now employed and living on their own, or gettingmarried and starting families. This range of potential life stageshas many implications for financial habits.

Gen Y consumers do have high expectations, a more fluidlifestyle, and the full spectrum of financial needs that can makethem difficult and less profitable to serve. But as their incomegrows, their lifestyle stabilizes, and their financial literacymatures, expect to see them outgrow some of their high costbehaviors and move the majority of their financial managementhabits to digital channels such as mobile.

So what can credit unions do about their high maintenance Gen Ymembers today? Here are three recommendations:

Next Page: Technology, Education,Awareness

1) Invest intechnology. Note that many of the activities listed abovecurrently cannot be completed online or through a mobile device,which Gen Y consumers report as their preferred methods offinancial management. More robust mobile and tablet bankingsolutions, online account opening tools, the option toelectronically sign loan documents, targeted offers, robust alertcapabilities, and electronic bills and statement histories – areall important components of the digital banking experience thatwill enable credit unions to better service Gen Y, and all of theirother members as well.

2) Awareness. “If you build it, they will come” was agreat line in the movie “Field of Dreams” but in the real worldcredit unions need to make members aware of their products andservices, how they work, and why they should care. Credit unionsthat offer compelling digital experiences that are too good to passup, and let consumers know about them, will drive usage. Gen Yconsumers are very vocal about their experiences, both positive andnegative. A great experience is likely to motivate them to share arecommendation of their credit union and the products they use.

3) Education. Given the broad range of life stageswithin Gen Y, there is an incredible opportunity to help educatethese consumers – not only about banking products and services –but also generally about good financial habits and behaviors.Social media provides a great platform for educational (not sales)conversations with potential members.

The 2012 Fiserv Consumer Trends survey suggests that while Gen Yconsumers are indeed high maintenance, they are likely to outgrowsome of their high-cost behaviors as their life stages andfinancial maturity evolves.

As Gen Y consumers start transitioning into a middle-agedlifestyle – the oldest Gen Y consumers are now 35 – credit unionsshould expect to see high-cost channel behavior transition to aprimarily digital-centered banking relationship.

Leading credit unions are preparing for this shift today byinvesting in the technology and marketing to create compellingdigital experiences for their members.

Daniel Steereis director, Consumer and Market Intelligence, for FiservInc. in Brookfield, Wis.