Much has been written about marketing to and attracting millennials. This is especially relevant to credit unions. The average age of credit union membership is 47 and continues to increase. Meanwhile, 4.3 million millennials are turning 30 each year. That number also continues to increase. A solution to reducing the average age of members without compromising the older demographics is to provide financial products for millennials, beginning at the time they most need it.Millennials, as a demographic for financial services, are invaluable. According to the Global Financial Literacy Excellence Center, 38% of millennials have incomes $75k and up. Nearly half (49%) own their own home. While this somewhat reflects the statistics of their parents’ generation, the baby boomers, millennials are different than their boomer parents in many ways. As many have noted they are much more tech savvy, streaming music rather than putting in a CD, using Uber rather than hailing a taxi, pull out a phone while shopping in-store to see if there’s a better price online.But several of their macro habits are learned from their parents, the most relevant of which are banking habits. And specific to banking habits is the attitude toward credit. Millennials have witnessed parents, or their friend’s parents, lose jobs during the recession; they know someone who’s had their house foreclosed, or at the very least they’ve seen many of their peers get overextended in debt. They see using debit as “responsible”, and the use of credit as irresponsible or risky. 64% of consumers aged 19-34 told Experian in a survey that they consider credit cards “dangerous”. For issuers looking to bring younger consumers into their portfolios, this is a problem that needs to be addressed. And to add to this, alongside their skepticism of credit cards, they come into the picture saddled with student loans, on average $37,172 in debt. continue reading » 1SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr
Aertzeversorgung Westfalen-Lippe6,390 She is to step down later this year as the leader of her party, the CDU, which she has led since 2000. While Merkel’s leadership in Europe has been often praised as the European Union has expanded and managed myriad problems – not least the sovereign debt crisis of 2010-11 – recent regional election results in Germany have put her party under pressure. Deutsche Lufthansa AG15,917 Source: S&P Capital IQHow German and European equities have fared since Angela Merkel first took powerGermany’s cost of borrowing has also fallen substantially in the same period. The yield on a 10-year German Bund was 3.4% in November 2005, but as the country’s economy strengthened and proved resilient in the financial and sovereign crises that followed, investors flooded to the percieved safe haven, pushing the yield down to around 0.4% at the end of October this year.Germany’s top 10 pension funds in 2005 and 2018 At the start of this week, German chancellor Angela Merkel announced she would not stand again as chancellor in 2021, meaning the end of her fourth term will see Germany’s first female leader leave politics altogether. Volksfuersorge Pensionsfonds23,503 Top 10 total278,479 Siemens AG14,622 Hannoversche Pensionskasse8,535 Winsecura Pensionskasse10,853 B-W Aertze, Zahnaertze und Tieraertze13,966 Germany’s top 10 pension funds 2018AUM (€m)Bayerische Versorgungskammer87,000 BASF SE13,576 Nordrheinische Aertzeversorgung13,709 Top 10 total133,093 VBL34,300 BVV16,000 Deutsche Rentenversicherung Bund33,097 BVV28,095 VBL8,000 Daimler AG24,197 Siemens Pensions Trust10,500 A disastrous result in Hesse over the weekend was widely seen as the trigger for Merkel’s decision, but tensions had been mounting since her election victory last year. It took several months for the CDU to agree a coalition arrangement with the SPD, after negotiations with other parties failed.Equity marketsRegardless of recent problems, the Merkel era has undoubtedly been a good one for Germany equity markets. The DAX index rose by 121% from November 2005, when Merkel was elected, to 1 November 2018, according to S&P Capital IQ. The MSCI Europe index is just 11% higher.#*#*Show Fullscreen*#*# E.on Energie6,200 Nordrheinische Aertzeversorgung7,112 Germany’s top 10 pension funds 2005AUM (€m)Bayerische Versorgungskammer36,000 IPE’s inaugural Top 1000 Pension Funds report was published in October 2000, shortly after Angela Merkel became the CDU’s first female leader.The first few iterations – including the report published in 2005 – consisted of 750 continental European schemes and a separate list of the UK’s top 250 funds. Germany provided 100 constituents in 2005. Since then the methodology of the Top 1000 has changed almost as much as the European pension sector has. This year’s report included 107 German funds as a result of a much broader data set used.Assets run by the top 10 German schemes more than doubled since 2005, led by BVK, which grew from €36bn to €87bn, making it now the fifth biggest pension fund in Europe. VBL more than quadrupled in size from €8bn to €34.3bn.See IPE’s Country Report for Germany, published in April, here.IPE’s Special Report on German Asset Management from the October magazine is available here.