5 Reasons to Make Convenience a Priority
Why improving your members’ digital experience is critical for your credit union, plus strategies for success.
Consumer demand for convenience is impacting how financial institutions design the customer experience like never before. As one credit union representative put it in this short video, “technology has spoiled us completely. Everything’s about accessibility, being convenient.”
With January’s credit union trends report projecting loan growth in 2017 to exceed 10 percent, credit unions have a huge opportunity ahead of them. Your success this year and beyond may well depend on how convenient it is for members to do business with you.
- Your competition gets it. Competitors realize that consumers increasingly prefer conducting business when and where it suits them, not around office hours or locations. It’s no surprise that 71 percent of financial institutions said improving the customer’s digital experience was their top priority for 2017.
- Convenience goes both ways. Consumers will take the path of least resistance, as long as it delivers value and meets their needs. One clear sign is the fact that online-virtual banks had the highest net gain (11 percent) among customers switching their financial services provider in 2016.
- Mobile is a must. The face-to-face channel isn’t dead, but the prognosis isn’t pretty. As smartphones get smarter and deliver more convenience, mobile is growing as the channel of choice. Use of mobile banking grew from 33 percent in 2013 to 43 percent in 2015 among mobile phone owners with a bank account.
- The technology revolution is picking up speed. From ATMs to debit cards to mobile banking, there used to be more time to react to one big innovation before the next emerged. That’s not the case today. Investment in financial technologies (fintech) has soared in the past decade – from $1.8 billion in 2010 to $19 billion in 2015.
- You may have blinders on. If you think your members already find you convenient and have little reason to leave, you may need to think again. The customers’ perception is reality. To illustrate, 62 percent of retail banking executives surveyed said they deliver an excellent customer experience. Only 35 percent of customers agreed. If members aren’t getting what they want, there are plenty of competitors stepping up to give it to them.
Keys to Success
As members continue to migrate toward the most convenient channels available, successful credit unions will empower them to manage their finances as easily as possible. Three keys to success will be:
- Delivering a streamlined, efficient end-to-end lending process to support credit union growth.
- Using digital tools to engage credit union employees and arm them to better meet evolving member expectations.
- Understanding that data is a roadmap to tendencies and behaviors that focus on how you optimize member interactions.
For more information, please contact Craig Reed, Director of Strategic Partnerships, Northwest Credit Union Association, at [email protected].
Rich Trace is vice president of Wholesale Lending and Commercial Protection for CUNA Mutual Group, leading the team responsible for the overall business strategy, product management, execution and financial results for one of the company’s core business units. Rich can be reached at [email protected].
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Corporate headquarters are in Madison, Wis.