Saturday, April 23, 2011

Banking for the Young

“Not Your Mama’s Account!” The catchphrase alone makes me want to stay as far away as possible from Vantage Credit Union’s banking website and remain secure with my standard online account through Regions Bank. However, I’m not in the target audience of 18-25 that Vantage Credit Union is trying to draw in through its partnership with Young & Free St. Louis.

I first saw the commercial yesterday as the announcer boasted the website’s ability for users to “tag” their spending to make and maintain their budgets. Intrigued, I checked out their website to see the new direction online banking maybe headed as the Net-Generation continues to mature. The site did offer the tagging feature, but it also has a blog with recent posts such as “Why Do Gas Prices Vary So Much” and “What is a 401(K)?” There are also videos hosted by youthful spokesmen that provide tips for saving money and getting out of debt. For those with more specific questions, they can post them on the website (while also entering their email addresses for a chance to win prizes!). I most appreciated the “Tips and Tools” page that had different debt, savings, and loan calculators as well as tips and links for auto, home, and student loans. This website knows its target audience well as it doesn’t require a minimum balance, offers free checking for those under 25, mobile banking through Twitter, $200 savings on closing costs for first-time home buyers, and they soon will have an iPhone app for free electronic depositing. What more can a recent high school graduate ask for?

The commercial I saw seemed cheesy and had me wary, but it is through a bank and sponsored by Young and Free, a company that already has set up similar partnerships in seven other states and two Canadian provinces. The more I think about it, especially in relation to what we have discussed in this course, the more surprised I am that I haven’t seen something like this sooner. This website takes a skill that most young adults lack, Personal Finance, and presents it in the way they are most comfortable receiving information: blog posts, Twitter feeds, and videos. Their literacy with those formats will hopefully enable them to get a better handle on their finances. I don’t imagine many college students walking into a bank to talk about managing debt, but I do envision their comfort with pulling up the latest debt reduction video on their smart phone. I definitely think they will at least take more initiative with maintaining their bank accounts as they will now have the ease of access through their already frequently visited Twitter accounts. While it may not be my preferred way to bank (I can’t even bring myself to get the Regions Bank app), I’m too old for Young & Free St. Louis, and eventually may be forced to adapt if this becomes the new model for banking.

Website: http://www.youngfreestlouis.com/

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