3 minutes
Go beyond technology for survival to technology for thriving.
Sponsored by SWBC
Could this kind of picture-based communication be the future of financial messaging—where members send emojis via text to their credit union to check their balance or pay their auto loan? This type of technology already exists for non-traditional banking apps like digit, but the industry isn’t there as a whole—yet. However, technology continues to provide new tools for credit unions to communicate with their members, especially for institutions focused on millennials and beyond.
Let’s face it, filling the “pipeline” of future customers is key to sustained growth. As your core member ages, there’s potential for growth and to capture the next generation of members. Technology has played a large role in how communication has changed in the last 10 years. We talk often about meeting the needs of consumers; however, a credit union looking beyond the “now” can ask, “How are we going to serve members of the future?” and “How can we communicate more effectively moving forward?”
Data from Larky, a mobile engagement platform, found that 88 percent of millennials conduct their banking online. And 50 percent of them bank with their smartphones, which is basically with them 24/7, much like wallets and purses. In fact, a pcworld.com survey found that 40 percent of mobile phone users would rather lose their wallet than their cellphone!
Communicating with members of the future will likely mean going directly to them and not waiting for them to come to you. Well, in the digital age, if you build a branch on the corner, it's more important than ever to develop an omnichannel presence to find ways to gain attention online, on social, in the community and on traditional media to drive potential members and borrowers to the brick-and-mortar location.
What else do millennials want, according the Larky’s data? A total of 74 percent of them feel their financial institution should provide tools to make their lives easier. This includes helping them purchase a car and a home, and providing intuitive ways to pay bills, including their loan payments.
The key is to embrace and foster a digital relationship with your members. Credits unions asking themselves, “How am I providing value to my borrower?” or “How can I better communicate with my members?” are on the right track to serving this generation and the next. The kids in Gen Z, by the way, are of the age where some are getting their first jobs or readying to go to college. They will be in the professional workforce much sooner than you think.
It can be challenging to think about the next "big thing" when you’re focused on day-to-day operations, but that’s why we are excited to work every day with credit unions that understand the importance of embracing technology and making the next thing happen in financial services. These agents of change think beyond the survival mentality and see technology and member service as an opportunity to thrive.
What technology are you embracing today to be a more efficient credit union, while meeting the demands of your current and future members?
Jason O’Brien is SVP/payments for CUES Supplier member SWBC, San Antonio, Texas. Click to read the latest payments case study on how one credit union increased their transaction volume by 43 percent.
If you liked this post, you may be interested in attending Payments University, which starts with two online sessions in July and continues in person on Aug. 13-14 in Denver.
You may also be interested in Strategic Innovation Institute, July 15-20 at Stanford University.
