Customer preferences have changed rapidly in the financial services industry, as new technologies increase expectations for convenience. More than ever, credit unions - which cater to local constituencies with a personal ear - have addressed this change by emphasizing technology and personalized services. One group has taken credit unions up in droves: millennials.
Swayed by online solutions and what feels like a unique experience, millennials are increasingly putting their money with credit unions, which presents an incredible opportunity for the latter. By beefing up their tech investments, including self-service coin counters, credit unions stand to gain wildly from the boon of millennials.
Millennial financial behaviors have signaled the drift toward more flexible arrangements. Consumers of the generation often use less cash, more cards, prefer to stay out of debt and would rather bank online than in a branch. Traditional banks have caught wind of these changes, but just aren't as agile as credit unions have been in making their own transition toward capturing this customer.
A key part in this is not just taking millennials money and saying "thanks, until next time," but offering personalized financial advice and tools to education. Credit unions have utilized mobile apps to make this work. NewsOK.com recently reported on a local union, True Sky Credit Union, that launched a mobile offering that rewards users for debit transactions and grants overdraft forgiveness if certain qualifications are met.
Credit unions have taken to nurturing millennial customers not only for business, but for the health of their local economy.
"We want to provide as much assistance so that the millennial generation can have a quality of life here without leaving the city, as some millennials decide they're better off moving out of the [Vancouver, Canada, metro] area where it's more affordable," Rick Sielski, COO of Vancouver City Credit Union, told Business Vancouver.
Tech innovations in banking are all about convenience, and there's nothing more convenient for customers than if their local credit union has a self-service coin counter. In addition to mobile apps, giving millennials all the tools they need to take care of their financial life will help credit unions secure their loyalty.
November 1, 2016