Credit union operations are continually evolving. Twenty years ago we helped members balance their checkbook registers as they sat across the desk from us; today we provide them with mobile apps that deliver real-time information and account warnings to their mobile devices. We are at a critical and important juncture as credit unions determine how they will best serve their members in the future.

In the United States, there are two groups of people who will shape our future economy, and they have very different needs. According to the U.S. Census Bureau, there are 92 million millennials about to enter their prime spending years and 77 million baby boomers who are moving into retirement. As financial institutions designed to serve our members’ needs through the “people helping people” philosophy, how can credit union operations bridge the gap between these diverse member groups?

Millennials grew up in a time of advanced technology, instant information and rapid change. They expect cutting edge technological services that provide convenience, flexibility and speed. With 62% of millennials connecting to the internet when away from home or work, they are adept at communicating using social media sources. Brick and mortar branch experiences are evolving to provide virtual tellers to meet this generation’s banking needs; however, virtual branch experiences are a far cry from the Internet-only connection these younger members enjoy.

It is easy for us to serve the needs of baby boomers, because “we” are baby boomers. However, with more than 10,000 boomers retiring every day over the next 20 years, their financial needs are going to change significantly. Baby boomers value personal interactions and expect the member service that has traditionally been provided by credit unions. 

Interestingly, there are two things that millennials and most baby boomers have in common: Both want convenience, and neither has planned well for retirement.

The frightening fact about our aging population is that almost half have not saved for their retirement and, according to a recent survey by the American Association of Retired Persons, 40% plan to work “until they drop.” The challenges of the economic recession adversely affected both boomers and millennials in a similar way. The retiring population stopped saving and the volatility of the market has discouraged millennials from participating in and investing fully in retirement plans.

Credit unions must examine the ever-changing needs of members and evaluate how to best provide service to all members, taking into consideration the limitations and opportunities that providing financial services in the future entails. We will need to deliver personal service through online interactions, offering the benefits of social media formats that are so prevalent in our society. From an operational standpoint, moving toward future online channels for financial services can provide cost savings – which benefits both the credit union and its member-owners.

As an industry, we are uniquely poised to assist and educate our members about financial decisions and planning for the future. Due to our not-for-profit structure, we can truly work with members to assess their past financial decisions and properly assist them to plan for their futures, without taking advantage of their situation and placing them in greater financial jeopardy. 

The credit union advantage in the financial landscape of the future is that in the next few years, we will begin to see the needs of our members change dramatically, and we must be prepared to help different generations manage their financial challenges and opportunities. As credit union operations evolve to meet our members’ needs, we will actively shape the future of financial services and protect the financial security of our members.

Shawn Wolbert, CIA, CUERME, CUCE, is senior vice president of lending and operations/chief financial officer for the Michigan Credit Union League & Affiliates. She can be reached at 800-262-6285 ext. 420 or [email protected].