While credit unions (CUs) continue to hold a position of primacy with older consumers, the share of millennials and bridge millennials who count themselves as members is a fraction of those in older demographics. At the same time, the share of Generation Z consumers now looking to CUs for their banking needs is nearly double the share of millennials who are CU members. Providing the digital banking tools and services that younger consumers have taken for granted could serve as a valuable step toward reestablishing CUs as a significant player in younger demographics.
To start making the kinds of inroads among younger demographics that CUs enjoy among their elders, simply having the right tools and services will not be enough. CUs will also have to learn how to engage and educate consumers about what makes CUs different and sets them apart from their competitors. That means learning to market in an increasingly crowded space where simply being a prominent part of the community in the physical world will not be enough on its own to get CUs the brand recognition they need.
The latest Credit Union Tracker® explores how ensuring younger consumers have the right tools can turn them into members, creating lifelong relationships.
Around The Credit Union Space
Younger consumers show a stronger preference for national banks than for credit unions, according to a recent survey. More consumers ages 18 to 24 use credit unions than those in either the 25-to-34 or the 35-to-44 age groups, however, creating an opportunity for CUs to rebound with the youngest generation of banking consumers. CUs have an opportunity to appeal to these groups if they can offer the digital tools that many expect alongside the member-centric mission for which CUs are known.
Unify Credit Union, the first CU to offer cryptocurrency trading services to its members, now has more than 6,000 of its 286,000 members using its bitcoin trading services provided through the New York-based NYDIG platform. The platform averages 5,500 trades each month and has conducted more than $600,000 in bitcoin transactions. With Unify making 2% on every trade, that has meant a significant, non-interest revenue boost for the CU. That kind of profit potential has gained the attention of CUs across the U.S., according to Credit Union National Association (CUNA) spokesperson Lauren Williams.
For more on these stories and other stories, check out the Tracker’s News and Trends section.
Amplify Credit Union On Creating A Solid Foundation For Digital
Financial institutions (FIs) of every size and type have numerous options for expanding their digital offerings and a seemingly endless number of innovation paths they can take. Before CUs let themselves get dragged too far down that digital road, they need to ensure that they have the backbone to support the digital products and services they want to provide their members.
In this month’s Feature Story, Lisa Larson, vice president of payments and operations at Amplify Credit Union, talks about Amplify’s effort to meet member needs for digital banking tools while ensuring a strong foundation on which products and services are based.
Fifty-five percent of CU members already turn to a secondary FI for at least one product or service, but 45% would prefer to have all their accounts and financial products handled through a single FI. CU members want their CU to be the only place they have to go to have all their financial needs met, but to take advantage of that, CUs will need to ensure they are positioned to be the FI members can turn to regardless of their stage of life or needs.
This month’s PYMNTS Intelligence looks at how CUs can use digital products and services to secure their positions as primary FIs for members and prevent portfolio leakage.
About the Tracker
The Credit Union Tracker®, a PYMNTS and PSCU collaboration, examines the latest trends and developments shaping the credit union space and effectively employing digital innovation to keep members satisfied.