3 Things Today’s Consumers Want in a Financial Institution
From 2016 to 2020, the number of established independent challenger banks — or neobanks — globally hit the 100-mark.
These digital-native banks appeal to millennials, the underbanked, and other underserved segments of the population. With many people eager to bank differently, challenger banks have been able to meet the demand by tapping into data and technology to create a seamless banking experience that supports financial wellness.
However, as digital banking innovation continues, the features that once set challenger banks apart from the industry are becoming standard at credit unions, whose unique, not-for-profit business model effectively combines the latest innovative services and solutions with unparalleled human connection.
According to Narmi, a leading provider of superior banking technology, there are three key ways credit unions can establish lasting relationships with today’s consumers:
- Prioritize Ease of Use — Make it easy for new members to open an account online and apply for new products by cutting down the steps it takes to enroll. Automate the identity verification process for new applicants and drop requirements that create friction. For instance, the need to provide documents — such as a photo ID — when applying for a new product or opening an account can lead to a 50% drop-off rate in completed applications.
- Play the Role of the Financial Friend — Ensure that looking out for the best interests of your members is baked into your banking strategy. Having a robust online suite of financial wellness services and educational content helps extend your brand messaging and builds trust with your membership.
- Align on Sociopolitical Issues — Show your members what your credit union stands for. Communicate your larger mission often via social media channels, by word-of-mouth, and through thoughtful brand partnerships. Positioning your organization as an ally and remaining relevant on current issues helps bolster your reputation and differentiates you from other financial service providers.