Credit unions are facing many challenges in the modern world of digital banking, and attracting new members seems to have become harder than ever… There are several issues that are causing major headaches for today’s credit unions. These include issues such as finding the best ways to provide online and mobile card services for credit union members, to keeping their branch doors revolving with existing and new customer traffic.Here, we look at the four major issues that are troubling today’s credit unions and how they may be able to overcome them.
Keeping Their Branches Relevant
Increasing numbers of credit union members are starting to choose social media and digital technology to engage credit unions. However, this does not mean that branches are no longer relevant. In fact, when looking at the most significant events in life when financial services are required, such as obtaining a mortgage, obtaining insurance, and making investments, having a personal contact beats social media hands down. The main challenge that faces today’s credit unions is to make branches more interesting, so they can attract people who are more used to enjoying the self-service experience. Some branches, for example, are experimenting with installing ATMs alongside off-site tellers who can be contacted by customers through the use of a tablet.
In today’s world, we are used to having 24-hour access to services and that shouldn’t stop when it comes to financial matters. Consumers today are accustomed to being able to pay their bills and contact representatives at any time of the day or night. Credit unions need to find a way to overcome the challenges and provide those services, so members remain onboard. Providing telephone and online payment processing channels will ensure that members have the access they require.
Another major problem that faces credit unions is that their mobile platforms, where they exist, are often non compelling and underdeveloped. Although mobile platforms lend themselves well to creativity, many credit unions are not taking advantage of this or harnessing the potential that smartphones and apps offer. More than half of cell phone users go online using their smartphones, and these numbers are on the rise. Increasing numbers of consumers do the majority of their Internet browsing on mobile devices, and credit unions need to work hard to attract these people as their newest members. Using social media, mobile services and apps will engage more effectively with members and encourage the younger generation to consider credit unions as a financial services provider in the future.
It has been shown that Millennials have a different view of financial services than Generation Xers and Baby Boomers. A study carried out by Scratch proved that increasing numbers of Millennials are viewing financial service providers as irrelevant. This means that credit unions need to gain their trust by showing them they, too, have an interest in the community and social issues that affect young people today. By offering Millennials the range of services that they expect, including card services for credit union members, credit unions will raise their profiles while increasing public awareness of what they can and do offer.
BillingTree is a leader in the provision of card services for credit union clients. Our effective market-leading payment solutions are streamlined and contemporary solutions for credit unions that need to improve the way they are viewed by the wider public. When it comes to attracting and retaining new members, credit unions need to pull out all the stops, and a key element of this is to integrate effective payment solutions into their operations that appeal to the next generation of members.