2015 Mobile Trends of Credit Union Members

by Chris Steffes, Remote Services Consultant

The mobile disruption is far from over. In fact, the speed to market for digital innovation will likely increase in 2015. BAI Banking Strategies surveyed financial services leaders, including credit union executives, and identified the top banking trends for 2015. It is no surprise that consumers’ heightened use of digital channels, especially mobile, rank high on the list, along with an amplified focus on the member experience. 2015 will be the year in which consumers shift their view about banking at credit unions - from being an obligation to a preferred lifestyle of convenience and mobility - due to the latest trends in mobile.

Their insight includes the following trends:

• Expedited deployment of digital branch delivery.
  Whether it's pushing member-driven functionality to your mobile channel or changing your branch experience to a self-service model with kiosks and advisory services, providing a digital experience will continue to transform the way credit unions serve their members. Getting out from behind a desk and meeting a member in a newly created space, similar to a lounge or café setting with a tablet, will continue to improve member perception as long as credit unions continue to present themselves as visually appealing, technically savvy and millennial-friendly. This is particularly significant in the middle and up-market demographics, as members will gauge a credit union’s value and progressive vision by their commitment to using digital tools for member convenience and business efficiency.
  
• Mobile-First design.
  According to the BAI article, banking and credit union executives believe 2015 will be the year when banks and credit unions will use mobile design strategies as the basis for all customer touchpoints. Their goal is to position mobile not only as a full-service delivery channel, but as the flagship channel for member engagement. Their strategy of increased revenue-generating functionality on mobile, along with member servicing tools like mobile video chat - especially popular with tablet users – will attract and drive new membership.
  
• Increased digital and social selling.
  Compared to 2014, Forrester Research predicts that twice as many customers will research financial products on their smartphones and tablets in 2015. And as millennials’ appreciation for all-things-social continues to grow, credit unions that transform their marketing tactics from traditionally static ads to more intimate engagement on digital channels and social media will see more success in revenue generation. This requires credit unions to make a fundamental change in how to communicate to members along with developing new strategy for optimizing digital media to engage consumers.
  
• Mass acceptance of mobile payments.
  With Apple Pay setting the benchmark in the mobile payments space, 2015 will be the year when mobile wallets will likely become the differentiator for attracting new members. According to Cap Gemini Research, m-payments are projected to grow by over 60% in 2015. While experts in the wallet space caution credit unions to carefully conduct regulatory due diligence in the payments space prior to selecting a vendor, it is wise to start analyzing device types of your current member base and begin a vendor selection process for a wallet provider that not only provides an agnostic solution among device types, but will feature your credit union debit and credit cards as a payment device within the wallet.

Gearing your digital strategy toward this year’s emerging trends will position your credit union to weather the demands of increasing member engagement and provide a better member experience at every stage of the member lifecycle. 

If your credit union needs help navigating the mobile world in 2015, contact CU Solutions Group - we've got mobile experts that can keep you moving forward.

How Credit Unions Should Market to the 20-somethings

Commonly referred to as Millennials, the 20-somethings of today really cannot be grouped into one simple category. Why? A quick look at this generation you will find some still living at home because they are perusing a master’s degree. Others are making payments on their first home while some are traveling Europe. So how can you market to a group that is so diverse in their lifestyles? To understand how you need to market to this group you need to understand their lifestyle. 

First, here are a few key points to know about the Millennial generation:

• The Millennial group is Americans born between 1977 and 1995.
• Currently age 19 to 37
• Population is around 79.8 million
• Most ethnically diverse generation in U.S. history
• Getting married and having their first child later than any previous generation
• Buying their first home later than previous generations
• Greatest number of college graduates ever – twice as many degrees earned in 2009 as in 1970
• Came of age with the internet, mobile devices and social media

Credit unions need to change how they market to this demographic because this group is so different than any other generation before them. It takes a lot to woo this demographic, so it’s important to know what Millennials are looking for in a credit union. A recent study by an industry trade group Independent Community Bankers of America uncovered exactly what Millennials want in their credit union. Here are some key points:

• Millennials want local – 54% of Millennials prefer to work with a locally, owned, locally-operated community financial institute.
• Millennials want mobile – 74% of Millennials surveyed said mobile banking was very important to them.
• Millennials want a relations – 64% of Millennials believe that developing a relationship with their financial instate was important. They value high-tech and high touch with communication.
• Millennials want to learn more – 70% of Millennials wished they had more knowledge and skill when it comes to financial matters.

Meeting Millennials’ Needs

How can credit unions meet the demand of Millennials? The first thing your credit union needs to do is understand how Millennials absorb information. This generation is highly visual as learners and communicators. Use graphics, pictures or short, fast-paced videos to engage them.

The second thing your credit union needs to do is to turn toward a digital format. Millennials like to see information visually. When creating communications, think in terms of pictures or graphs instead of a wall of text.

The last thing you credit union needs to be doing to reach Millennials is to treat them like a VIP. The study found that Millennials feel that financial institutes treat them like a number. Fortunately for the credit union industry the “people helping people” philosophy has put credit unions in a great position to treat Millennials like individuals, not numbers. Here are some ways to make a new Millennial feel important in your credit union’s branch:

• Introduce them to three employees so they are familiar with the team that runs your credit union.
• Ask them how they want to be contacted. They may prefer a text message or a traditional email or voicemail.
• Invite them to exclusive events that they might otherwise not be able to attend – festivals, sporting events, fashion shows, and non-profit fundraisers.

Looking for ways to better reach the Millennial generation? CU Solutions Groups has what you need to reach this growing group. We can help you connect to the Millennial group better than you ever have before with technologies like: youth sites, social media campaigns, cutting edge graphic design, mobile sites and smartphone apps, and even video creation. 

Help Your Credit Union Stand Out from the Crowd – Part 2: Wooing Gen Y

by Amy Neale  

In response to CUNA’s Member and Nonmember Survey Results, we thought we’d address three distinct ways you can help your credit union stand out from the competition. To do each section justice, we’re delivering it to you over a three-part blog series. Welcome to Part 2. 

Wooing Gen Y
When it comes to wooing Gen Y/Millennials, credit unions have a long way to go. According to the CUNA Member and Nonmember Survey, respondents ages 18 to 24 were just as likely to recommend credit unions to others (31%) as they were to recommend banks (32%). Combine this with the aging membership issue most credit unions are facing, and you’ve got a demographic that needs more attention.

Jon Haller, CUNA’s director of corporate and market research points out that most banks get an edge over credit unions when Gen Y hits college and becomes aware of the banks co-branded credit and debit cards. Haller perceptively points out that it all depends on who gets to that generation first. So, what can your credit union do to stand out from the crowd and get there first? Two words: financial literacy.

A recent Wells Fargo survey found that more than half of Millennials say debt is their biggest financial concern. And an impressive 78% said they learned “a great deal” or “somewhat” about personal finances from their parents. The best approach to offering financial literacy programs to your younger members would be to offer it to them and their parents. This could come in the form of financial education articles on your credit union’s website, savings clubs that target Gen Y or even videos or podcasts on your website that discuss various financial topics.

In addition to boosting your credit union’s financial literacy program, you might want to consider developing a marketing program that appeals to younger generations; adding products like first-time auto loans or credit cards for members just starting to establish a credit history; or create financial seminars geared toward the Gen Y demographic. Plus, a strong social media strategy and presence can go a long way to wooing those Millennials. 

CU Solutions Group can help you woo Gen Y with its Financial Resource Center, youth websites, youth campaigns, podcasts and social media expertise.