Common Wealth CU is Taking a Risk on the Youth Market
Oct 15, 2007 
Meridian Booster | By Christopher Heffernan
With the launch of its Young & Free program, the Lloydminster-based credit union is offering free accounts, including unlimited transactions, to young people between the ages of 17 and 25. They are also on the lookout for a Young & Free spokesperson who will be the eyes, ears, and voice of that age group.
"This is an entrepreneurial idea that came out of the result of our research," said Jeff Mulligan, president and CEO of Common Wealth Credit Union Ltd. "Into how to communicate, how to engage, how to become valuable and relevant to what is emerging to be a very important sector in our business."
Young & Free members will get a free chequeing account providing an unlimited number of withdrawals which can be accessed from the ATMs of any credit union, not just Common Wealth, or from the ATMs of ATB Financial. Account transfers, debit transactions, cheques, bill payments, internet and teleservice banking are all free.
"There's not a big sign that says 'free' followed by a bunch of fine print," said Mulligan. "It is free."
Part of the program's appeal may be that similar services are not being offered by other financial institutions. There are two typical accounts offered to young people by the major five banks. The first are free accounts for youth under 19, which are geared toward saving.
The second are student accounts which offer a high number of debit transactions, low monthly fees, access to a student line of credit, and other bonuses such as budgeting advice. The catch is these are only offered to young people going to college or university.
"The minute that you are in a position to be truly free and start making your own financial decisions, most financial institutions just treat you like everybody else," said Mulligan.
The job of the Young & Free spokesperson will be to facilitate communication between young people and the board of directors.
Mulligan admits it is a risk, but says he prefers to see it as an investment in people who he hopes will bank with the credit union for the rest of their lives.
"It's a considerable investment we're making, but again, if you want a partnership of value, both parties have to invest," he said.
