It’s the start of a new decade with lots of exciting things to look forward to but that doesn’t come without its challenges. Credit unions should consider what these challenges are and how they are going to overcome them in 2020 and beyond.
With more and more people going digital for many aspects of their lives, credit unions are going to be serving a new generation of members with different wants and needs. We have taken a look at some of the main challenges that will be faced in the coming years. Read on to find out what your credit union is going to have to look out for and what to do about it.
One of the biggest challenges being faced by the industry is the changing member expectations. People are moving more aspects of their lives online and managing their affairs digitally. This is true of things like insurance, holidays and of course, their banking habits. More of the current and upcoming generations are using internet and mobile banking. This is something your credit union is going to need to consider offering to members, and if you already do, think about how you can improve the service. Challenger and incumbent banks along with brand challengers are fighting to offer the best in technology. To encourage all the new memberships and retention that you can, you’ll need to do the same.
Your credit union will find that as you attract in a whole new generation of members that many of them will be impatient and want access to your products and services here and now. Millennials especially have low patience when it comes to in person and digital experiences. First of all, if they can’t do something online you will lose many of them in the process. If they do come to your branch, they’ll also need everything in that visit. This may seem dramatic, but millennials have been named as the most ‘impatient generation’ (hrreview.co.uk) so this is something that you will have to combat.
Think about your current membership. Many of them will have only been able to come to your branch when they first joined, and this is probably how you built trust with them. Nowadays, it’s a little different. If you have a lot of members who are predominantly online, you need to think of ways to maintain your relationship with them. 71% of millennials would rather go to the dentist than go and listen to what their banks have to say (forbes.com) so you need to think about this when planning how you will connect with your members. Think about where they are and how to reach them. This is why we’re seeing more and more credit unions investing in innovative technology to help them remain relevant and connected.
While dealing with the challenges of trying to retain members and attract new ones in, you must remember that in the background dealing with your security should remain as important as ever. When you invest in technology and your data moves to the cloud, maintaining and protecting it should be a top priority. Moving to the cloud is definitely a must and doing so through the help of a FinTech is for many credit unions, the best and safest option. Working with a FinTech that knows security inside and out will save you a whole lot of difficulties and stress in the future.
As we enter in a new decade, marketing may become more challenging for credit unions. Most marketing is now done online which means that people are flooded with information everyday so reaching your audience maybe tough. That being said, social media could be one of your most powerful marketing tools and can be used as online word of mouth. Scaling your marketing efforts or getting outside guidance on what your next move should be will help you nail your marketing campaigns in 2020.
The challenges that we’ve mentioned are ones which not only credit unions will have to face, they are for any organisation in any industry so know that you’re not alone in this. Whether you have big budgets or a little to spend, think about these challenges when you’re planning the year ahead and making decisions surrounding technology and marketing. Remaining relevant is key and to see success we must adapt to what is coming.
For help and advice on anything from technology solutions to marketing or security, get in touch with the Soar team. We have a range of experts in-house that would be more than happy to help you plan for success. You can talk to us by contacting us through our form here.
