Adapting to compete with the rise of financial technology is becoming a priority for Credit Unions (CUs). Keeping up with customer’s increasing digital expectations is now vital for survival. Advancements in digital banking practices not only give CUs a competitive edge but enhance customer experiences and streamline operations.
Understanding these adaptations was the focus of the “2024 Credit Union Innovation Readiness Index (CU-IRI)” which surveyed over 4,500 U.S. consumers. The goal was to highlight the strengths and weaknesses of CU services. Feedback covered vital topics like customer satisfaction, digital service offerings, and innovation readiness. The findings will guide CU management teams to make necessary improvements, providing higher levels of customer satisfaction.
CU-IRI’s findings pointed out that a large number of CUs, roughly 80%, have benefited from advancements in payment methods, giving an impressive 90% satisfaction rate among the top 30 CUs. These changes have boosted customer satisfaction and mobile app usage, showing the growing demand for digital services.
For CUs, tech partnerships are a golden opportunity. A collaboration, like that of Greylock Federal Credit Union and a digital banking solution provider, made it possible for the CU to improve its services without a massive upfront investment. The partnership resulted in innovative features like online account opening and enhanced mobile banking facilities.
The ‘Innovation in Retail Banking’ report by Efma and Infosys Finacle highlighted the competitive advantages CUs can gain from these tech partnerships. It allows them to introduce the latest technologies faster, improving their overall performance and member satisfaction.
These tech collaborations help financial institutions to improve their digital capabilities while reducing costs and risks. Thus, they can better cater to their digital-demanding customers without building the solutions themselves.
Tech partnerships are giving CUs a chance to stay relevant amid the digital disruption and continuously adapt to customers’ continually changing demands. Superior banking services resulting from such partnerships ensure higher customer satisfaction and retention.
The success of a CU is no longer just about accessible branches. Omnichannel banking methods have become decisive in attracting new members. Around 12% of consumers switched to their current CU due to a lack of reachable branches with their previous financial institution while 8% cited poor online and mobile banking facilities. Amazingly, 15% stated poor customer service as their primary reason for leaving their former bank.
The future of CUs lies in the balance of physical branches, good customer service, and tech-enabled solutions, such as mobile banking apps. A perfect blend of these significantly impacts the reputation and trustworthiness of a financial institution, making it attractive to future members.
The key to a flourishing CU is by not just retaining satisfied customers, but attracting new ones. The CU-IRI study emphasized the importance of enhancing digital and physical access to services and identified potential areas for further innovations. Such advancements could effectively decrease member loss and draw in new customers.
