Credit unions have been on the forefront of change in the past few years as mergers and acquisitions have brought consolidation to the industry, and digital technology has amplified the way members can engage. So what's ahead for 2016? Here are eight forecasts with suggested strategies.
Keep communicating – new members are still coming. Members continued to join credit unions at a steady pace in 2015, with overall membership increasing by 3.9% last year, according to CUNA Mutual Group. While most increases are taking place at credit unions with assets of more than $500 million due to organic growth and mergers, all credit unions should prepare to keep up with the pace of increased membership opportunities. Making your messages more understandable and accessible by putting them into easily viewable online videos is recommended.
Support the community with financial literacy. According to government data, U.S. consumer debt totals $11.19 trillion. People who are not financially literate are more likely to use high-cost borrowing options such as payday loans and check cashing centers, get in trouble with credit cards, and/or experience a foreclosure or bankruptcy. Credit unions can play a vital link in the financial health of a community by promoting financial education and low-cost lending options.
Make cybersecurity education a priority. With data breaches in the news, members will continue to have concerns about privacy issues. Data security must be heightened, and one key component of this is educating members about cybersecurity. This can protect them and help your credit union avoid a crisis that can negatively impact its reputation.
Keep moving toward EMV technology. Due to the high expense, it is estimated that fewer than 50% credit unions had both EMV-equipped credit and debit cards ready in time for the Oct. 1 deadline. That date marked the point when liability for fraud losses shifted to the party (either the issuer or merchant) that does not support EMV. This change in assuming liability for counterfeit card transactions will possibly cost or save credit unions significant amounts of money. Promote EMV chips with your members if they are available.
Prepare staff for prompt and timely communications. Communicating in real-time is essential in a world where social media has fostered consumers with shorter attention spans. As a result, internal communications are – and will remain – increasingly important. With the proliferation of new banking technology, it is imperative that updating your technology to meet member demand does not outpace training your employees.
Use branchless banking to foster engagement. In the U.S., 60% of digital media time is spent on smartphones and tablets, according to 2015 comScore data. As more credit unions move to virtual interactions, the communication irony is that with mobile technology comes more engagement. Credit unions that are quick to adopt effective digital marketing technologies will connect with members in the ways they want to be engaged. Developing more interactive options can help build relationships with these empowered members.
Personalize social media. Continue using social media to stay connected with members, engage prospective members and build buzz. However, efforts must shift from generalized to more personalized strategies. Remember to remain human; it is not just about a speedy reply, but a connected reply.
Do not talk omnichannel. This industry buzzword is overstated and underused, and is not a trend. It assumes that a credit union's functionality should be flexible enough to allow all members to access all features, transactions and functionality through all channels, including mobile apps, the web and kiosks. But realistically, it ignores the fact that sometimes there are good reasons for not offering all capabilities in every channel.
Casey Boggs is president of LT Public Relations. He can be reached at 503-477-9215 or [email protected].
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