TheMReport — News and strategies for the evolving mortgage marketplace.
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26 | Th e M Rep o RT Feature 26 | Th e M Rep o RT result, becoming a trusted advisor for your Generation Y customers may be challenging. Start by recognizing the value of the local communities in which your bank operates. Millennials have strong feelings about their communities, both their real-life ones and the virtual ones they participate in online. It's important to move away from the stereotype of a big, uncaring, national bank focused exclusively on profits—em- phasize the local expertise of your bank staff and your familiarity with local concerns. Some valuable tactics in this strategy include: Technology. Millennials are the most tech-savvy generation, moving easily among devices in search of the content that interests them. Studies have shown that homebuying millennials check out homes online via convenient, easy- to-use mobile apps and conduct home finance conversations by smartphone texting. Conditioned by the Internet, they also expect you to be ready any time they are. Are you ready—with operational resources, with technology invest- ment, with trained staff, with the latest security precautions—to meet these expectations? Does your technology operate in the context of local markets and incorporate local information? Social Media. Closely intertwined with technology, social media is all about building an online commu- nity. Millennials are dedicated users of social media, as a generation that socializes continuously and with few inhibitions. You should expend proportionately as much energy and resources on these channels as you do on your regular advertis- ing and marketing campaigns. The key is to actively engage your millennial audience, rather than passively await their responses to your posted material. As many of them are uncertain about their credit scores and don't know what closing costs are, social media offers excellent opportunities to introduce your bank in real time, engage in personal conversations around home purchase and finance, and gradually establish your institution as a trusted expert on important homebuyer topics. Recommendations and Testimonials. In the age of online reviews, Generation Y looks to see what others think. Banks, perhaps unfairly stigmatized by the hous- ing crash, really need to cultivate positive reviews on social media that reflect their great service, competitive rates, community ori- entation, and sympathetic support for struggling millennials. You can also weigh the possible advantages of polling social networks for feedback, but only if you are confident of the response. Easy Information. Millennials are big on visuals, which is why infographics is often the way to go when making your case with them. While mortgage lend- ing is notorious for its reams of unavoidable, closely-written dis- closures, develop some millennial- friendly materials that satisfy their demand for fast, usable informa- tion in easy list or color formats. Don't Forget the Parents. Millennials like their parents and respect their opinions on many topics. A good reputation with the parents' generation as an honest, ap- proachable mortgage lender in your community can go a long way with their offspring. While online-fo- cused millennials may not be keen on attending a homebuyers' seminar, their parents are familiar with the format. Setting up a seminar on "Helping Your Adult Children Qualify for Homeownership" could be a way to indirectly facilitate millennial home purchases. Support Millennial Causes in the Community. According to the Brookings Institution, "Sixty-three percent of Millennials want their employers to contribute to social or ethical causes they felt were important." This attitude carries over to consumer purchases, as "Eighty-three percent expressed a stronger likelihood that they would buy from companies that supported solutions to specific social issues." The banking industry can recover lost ground with Generation Y by engaging seriously with their social concerns and dedicating resources—time, money, staff—to favorite causes. Expand existing community-based outreach and charity programs and use social media to draw attention to your good work. Millennials are big on visuals, which is why infographics is often the way to go when making your case with them. JiM JuMpe is Arch MI's VP of Marketing and Product Development. With more than 20 years mortgage industry experi- ence, he oversees the company's marketing strategy, concept develop- ment, and launch of new products.