Young banking consumers have many more choices today when it comes to conducting their financial business, and any financial institution (FI) looking to stay relevant with these generations must be prepare be more than their parents’ bank. Credit unions that once could rely on familiarity and a personal touch are now struggling to survive in an increasingly competitive banking environment.
These young generations who are reaching maturity in a context of economic difficulties are also in look for FIs that will actively help them reach their financial goals through increasingly sophisticated digital budgeting and planning tools. Credit unions have historically been slower to adopt new technologies than their traditional FI rivals, but staying competitive means updating the technology infrastructure to cater to younger consumers on the digital channels they prefer.
The July edition of Credit Union Tracker® explores the impact of the digital age of banking on different age groups and explores some of the features they are looking for. Additionally, it examines where credit unions are investing to meet the growing digital demands of a new generation of banking consumers.
Around the credit union space
While there was a time when it was common for young adults to follow their parents’ example of where they banked, a new report says that is no longer the case. Young banking consumers have many more choices when it comes to how and where they conduct their financial activities, the report notes, and FIs that want their business to be passed down from generation to generation will need to invest in multiple channels to respond to this young demographic.
To that end, Florida-based Achieva Credit Union announced a partnership that will allow its members to transact in bitcoins, citing growing interest among young consumers in using cryptocurrencies, according to a recent report. report. Transactions will be processed by NYDIG, a FinTech holding company specializing in bitcoin banking. Achieva members will be able to use a widget on the credit union’s app that will allow them to trade bitcoin as well as access transaction history.
To learn more about these and other stories, visit Tracker’s News & Trends section.
Canvas Credit Union on providing digital banking for all generations
Financial apps and the mobile devices they run on are so ubiquitous that many young consumers have never set foot in front of a teller to make a deposit or apply for a loan. Unlike their banking and FinTech counterparts, credit unions have traditionally focused on personal service rather than profits and therefore often have less capital to invest in digital transformation.
Older members value the personal interactions offered by UCs, and UCs need to work to continue to deliver in this channel. At the same time, they must be careful not to alienate young consumers who prefer instant and remote services for their banking needs.
In this month’s report, Damian Jakubczyk, vice president of digital innovation at Canvas credit unionexplains how credit unions need to maintain face-to-face banking services while moving to meet the needs of digital-first consumers.
PYMNTS Intelligence: How UCs are working to meet the digital banking expectations of different generations
It used to be assumed that bank customers would bring their children on board to become lifelong customers themselves, but a new study indicates that this assumption is no longer valid. Less than half of Gen Z and Millennials surveyed used the same FIs as their parents in 2021, compared to 61% and 54%, respectively, in 2020.
While older generations may still prefer face-to-face interactions with tellers and occasional ATM visits, younger, more tech-savvy banking consumers are looking to avoid trips to the bank altogether in favor of shopping. mobile apps that enable safe and seamless service in the palm of their hands.
This month’s PYMNTS Intelligence looks at how UCs are working to meet different generations’ expectations of digital banking.
The Credit Union Tracker®a PYMNTS and PSCU collaboration, examines the impact of the digital age of banking on different age groups and explores some of the features they are looking for. Additionally, it examines where credit unions are investing to meet the growing digital demands of a new generation of banking consumers.