When most people think of credit unions, they immediately picture a quaint brick building with the word “credit union” written in big letters on both sides. But times have changed, and so has the way we bank – or maybe more accurately, how we borrow money from banks.
The financial system is changing into what some call “omnichannel.” Omnichannel banking means that you can engage in transactions through various channels such as video chat, mobile phones, tablets, ATMs, etc., without having to go out of your house at all if you don’t want to!
There is an increase in pressure for credit unions to diversify their services today to satisfy members. These two types of members demand different things. The younger generation wants newer services such as streamlined payments, whereas the older generation requires in-person services.
Credit Union (s) Must Embrace Mobile Technology
The competing demands mean that credit unions have to provide the best service. Should the focus be on expanding in-person channels for old members or diving deeper into modern channels to attract new members?
Although most financial companies have solely focused on digital transformation, they overlook the importance of omnichannel banking.
Banks and credit unions should put more effort into both in-branch service expansion and the implementation of technology that enables online services, digital communication.
Financial Institutions are all about catering to members over a long period of time.
It has been successful due to the continuous effort of selling new products throughout the lifespan of members. According to research, the more channels credit unions or banks use to engage with customer satisfaction, the more products they purchase.
Contrary to what you might be misled into believing, the younger generation also cares about traditional channels. Although more people aged 18 to 29 prefer mobile banking, they do demand personalized services. About 74 percent of people aged 18 to 29 have gone to a bank to make a transaction during the past two years. The reason behind visiting the branch is that they had a preference for in-person interaction and felt comfortable. On the other hand, around 85 percent of 60-plus-year-olds visit a branch for most of their transactions.
Gen Z and millennials demand the latest services. However, it does not mean that old channels have diminished. There are many reasons why the younger generation stills want to visit branches. A theory behind their behavior is that they prefer a certain degree of touch that traditional banking offers. Regardless of the sentiment, omnichannel banking will only grow.
This is why Banks and credit unions are now looking for ways to increase their customer base by implementing a wide range of different channels.
Many banks have been investing in omni-channel communications as the need arises, with many customers demanding more methods than ever before to interact with their financial institutions. From social media pages on Facebook or Twitter, mobile banking apps that sync up all transactions electronically, so you never miss anything again if your phone dies mid-day; there is no limit these days when it comes down to what options might be available for both consumers and institutions alike who want nothing but communication engagement through every possible channel at once instead of just one specific way like they were used too!
Omnichannel Strategy Risks – Customer Experience
Even though an omnichannel strategy offers plenty of advantages like improved growth and member experience, it has some risks. To succeed, credit unions have to increase the acquisition of new members.
More Channels Increase Risk
Although new channels increase opportunities, it also means that monitoring member behavior and channel health would be more difficult. Even though credit unions know how different actors behave, they still need to predict the impossible to succeed. There are plenty of cybercriminals who are looking for an opportunity to exploit any untested channel.
Financial Offenders Are Becoming Smarter
With technology improving and helping detect criminal financial activity, financial criminals are molding their techniques and coming up with complex schemes to detect the limitations of the technology used by credit unions. It is due to this reason that members are having trouble trusting. To beat financial criminals, you have to increase technology investment to adopt the latest security measures.
Think of all the time you’ll customers will save by not going out and lining up at a bank branch! They can do your banking right from home. Want more information? Click here for our blog on omnichannel banking, or contact us directly if you want help developing an omnichannel strategy that will work best for your business needs.