By Andrew Tilbury
Credit unions recently achieved a significant industry milestone, reaching $1 trillion in collective member deposits, serving more than 90 million members nationwide. The well-publicized Bank Transfer Day bolstered these numbers by attracting more than 1 million new members.
One could argue this is a temporary surge resulting from public backlash over increasing bank fees for such previously free services as checking accounts and debit cards. I, however, believe the motivation to switch from a bank to a credit union goes beyond simply finding a way around the new fees.
Consumers are increasingly turning to FIs that offer the latest technology, specifically self-service and mobile applications, as primary reasons for selecting a financial institution. The development, deployment and promotion of a robust self-service banking platform should be a top priority for every credit union to ensure long-term member loyalty and new growth.
The spread of ATM networks initiated the transformation of banking, specifically the shift away from bricks-and-mortar branches. Growing popularity of online banking and now mobile applications has furthered this shift and placed a higher value on self-service channels. Historically, only the largest money center banks could afford and support sophisticated self-service channels. However, advances in technology have put modern self-service solutions within reach of even the smallest credit unions. Launching a comprehensive suite of self-service options no longer requires hefty investments and a large IT department. And most importantly, it now takes a matter of weeks, vs. months, to bring these services to market.
Credit unions are presented with a unique opportunity, but one with a limited window. As the momentum behind the credit union movement continues to grow, credit unions that launch a robust suite of self-service options--including mobile deposit, mobile payments and other personal financial management tools to name a few--will be poised for success. After all, why then would any member benefit from switching to a money center bank?
Andrew Tilbury is chief marketing officer of Bluepoint Solutions, a CUES Supplier member based in Vista, Calif.
Attend CUES School of Product and Channel Management, July 18-19 in Seattle.
