Millennials – A Major Impact on Today’s Payment Systems for Credit Unions
Credit unions are struggling to stay relevant in today’s modern financial sector. Many younger people think of credit unions as being only for the older generation. They see them as old-fashioned and out of date. Credit unions are now having to work hard to combat that viewpoint. A key part of any strategy in this respect is to appeal to Millennials. So, how can any small-scale financial institution appeal to younger people looking for financial services? An important part of this drive is to find the right payment systems for credit unions.
Millennials are increasingly looking to digital platforms to carry out all the important interactions in their lives. This could either be paying for their favorite coffee on the go or purchasing the latest fashions with a click. Online transactions are very much the norm. It is clear that the Millennial generation is stirring a change within the global e-commerce environment. Instead of using cash, they’ve driven more innovations within the digital payment industry. It is no wonder, then, that there has been such a trend toward digital-driven payments.
While these innovations represent good news for e-commerce industries, they’re causing a headache within the financial sector. Credit unions and other small financial institutions are facing disruptions. Customers now need to pay at a time and place and in a way of their own choosing. For credit unions to stay successful, they must cater to that need.
The Changing Digital Landscape
Millennials are almost permanently attached to their smartphones. This is something any financial organization can harness. Ninety-eight percent of people aged 18 to 34 own a smartphone. Ninety-seven percent of those people use social media platforms. Most importantly, Millennials really do not like paying in cash. Paying via their smartphones is definitely the way forward for them.
Almost 70 percent of all Millennials are now managing their finances using tablets or phones. Mobile banking lies at the very heart of the spending behavior of this generation. It comes as no surprise, then, that 65 percent of Millennials now pay for many services and products on their smartphones. This is compared with 42 percent of the rest of the population.
Not only that but 84 percent of Millennials use debit or credit cards to pay for their purchases. They are tech-savvy, detail-oriented, and selective. They like to pay on the go. They don’t want to wait. Speed and convenience are of the essence. Financial institutions need to adapt. That means it is paramount to find the right payment systems for credit unions to appeal to this generation.
Flexibility and Security – Striking A Balance
Even before digital payments were on trend, innovations in payments were about getting the balance right between flexibility and security. Convenience is king, but not without security underlying it. It is vital to find payment systems for credit unions that are highly secure, convenient, and, above all, compliant. Members of this generation need to feel secure when making payments. They need to feel protected from cybercrime. They need to know hackers won’t steal their details, both financial and personal. Credit unions and small financial institutions need to bear this in mind when putting payment systems in place.
Millennials and The Omnichannel Approach
When credit unions are looking to appeal to Millennials, they need to consider the need for an omnichannel approach. Seamless and smooth integration is key. Payment systems for credit unions that fit seamlessly with existing systems and branding are ideal. It is essential to be able to access a credit union’s website and make a payment using a preferred method. With an integrated web portal and IVR system, Millennials will feel comfortable making payments. They will be able to access the system 24 hours a day, seven days a week. They can use the credit or debit card of their choice. They can pay from their laptops, PCs, tablets or smartphones. All this is very appealing to Millennials. It feels familiar to them, and, in turn, this makes credit unions more appealing.
Digital Payment Systems for Credit Unions Lead the Way
In the years ahead, digital payment systems for credit unions are even more likely to be widely adopted. Smaller financial institutions will increasingly look online for more Millennial-friendly approaches. The advantages are clear, both for Millennials and those running financial organizations. Payments are quicker, management is simpler, and relationships become easier and more positive.
With this in mind, BillingTree’s digital payment systems for credit unions are a perfect choice. Compliant, convenient, and cost-effective, BillingTree’s solutions fit seamlessly with existing software. Allowing access to a 24/7 portal, BillingTree allows people to make payments via a range of methods. Access from any Internet-enabled device is possible, and this means that the smartphone generation is well catered to.