4 out of 10 Americans have not checked out a bank or cooperative credit union branch in six months according to US News Moneys 10 Banking Trends for 2016. Bankrates Financial Security Index survey states this number is rising. To much better serve member-customers and bring in brand-new members, progressive cooperative credit union are aiming to add more convenienteasier online banking choices, as well as other services that speed members access to financing and funds.
One major area for growth is amongst millennials, who represent more than a quarter of the United States population. With 83 million born between 1982 and 2000, millennials now surpass the 73 million infant boomers, according to the US Census Bureau.
Engaging millennials who are connected to their smartphones needs a mobile-first strategy. As Cooperative credit union Journal reported (Exactly what do Millennials Want from Banks? Everything. Nothing. Whatever), a recent CCG Catalyst survey of 450 customers aged 18 to 34 found that 90 percent have a relationship with a standard financial organization. The majority in that age range (68%) use online banking, with 44% comfortable sending cash digitally and 39% utilizing mobile remote deposit capture.
Based upon our own internal survey data of more than 1,000 people ages 18 to 34, 92% report currently using a bank, and almost half, or 45%, say they have also utilized non-banking services consisting of pre-paid cards, check cashing, pawn stores and payday loans. This presents an intriguing opportunity for cooperative credit union to capture a new market segment or enhance service offerings for existing members.
Today, many CUs that offer short-term cashcash loan require these loans to be originatedcome from person at a branch. Waiting to go to a branch during typical company hours is not convenient or practical for debtors who need emergency situation funds. If CUs have the ability to stem and service these loans online, they could alleviate members burdens, resulting in more satisfied and devoted members and place themselves as an attractive banking option for brand-new members. This kind of emergency funding unlocks to cross-sell other products that can assist debtors conserve and enhance money management. In reality, cooperative credit union can grow their subscription base by offering short-term loans with higher convenience, speed and security.
For CUs that do not have the technology and infrastructure to support these fast turnaround loans and other digital transactions, there are new fintech options available. By partnering with a fintech company, cooperative credit union do not requirehave to make remarkable investments in new technology or work with experts to manage the newestthe current developments. Fintech solutions providers can supply computing power and procedures for credit unions to establish and manage a robust online existence.
Many fintech companies provide an extensive suite of solutions that will enable cooperative credit union making the shift to digital banking in a methodical manner, adding online items with time. Fintech companies can likewise deliver consumerclient service training and support other credit union group members as they upgrade their systems and procedures. In addition, the fintech options company can support credit unions in balancing the digital and branch experience so that members can carry out company in the way that is best for themwhether it remain in individual or online, or perhaps both depending upon the deal.
How can cooperative credit union choose the ideal fintech partner? Credit unions should search for a solutions carrier that not just stays ahead of the innovation curve, however also understands financial cycles. Ask whether the fintech business has been around throughout times of high consumer confidence, along with during times of market volatility. The proper fintech partner will provide a full suite of options to propel credit unions to update and upgrade services.
Credit unions are challenged with rigorous regulations and greater capital requirements. To better serve existing members and bring in new ones, they must embrace brand-new technology and offer safe, user-friendly digital experiences that permit greater convenience and gain access to for their members. Partnering with fintech professionals is an excellent way to add brand-new services quickly and affordably.
Martin Wong is CEO of Believe Finance, a fintech company concentrating on financing, situated in Addison, Texas.