Having an online and mobile presence is no longer enough. The evolution of financial services involves enabling a digital member community, which increasingly demand more personalized and efficient services.
A 2016 Javelin study predicts that 80% of consumers will be using mobile banking by 2020. "So, a strong foundation has a strong mobile app as evidenced by app store ratings, member feedback and engagement rates," Kristen Bernard, senior director at NCR Digital Insight, said. She added, when credit unions make it easy for their members to access information and make informed decisions, the engagement with the member via the digital channels increases.
A recent report from Atlanta-based FI Navigator, published with Boston-based Celent, found almost 6,500 financial institutions offered mobile banking. In addition, mobile deposit has evolved to having 63% implementation, and bill pay is available at almost 90% of financial institutions.
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Customer use of digital channels leads to increased retention, as does use of certain features, like bill pay, according to FI Navigator CEO/founder Steve Cotton. "In addition, financial institutions offering bill pay enjoy 30.3% higher customer enrollment to deposit accounts than those that do not."
So what long-term digital strategies should credit unions consider?
"Growing members is really the strength in your future franchise. The demographic shift is a concern for credit unions. Millennials want all the pieces in one location and not scattered throughout the app or website," Lee Butke, president/CEO for the Columbus, Ohio-based, $3.7 billion Corporate One Federal Credit Union, explained.
"It is so important for us to be able to adapt to a rapidly changing technology landscape," Amanda Smith, manager of emerging products and integration for Rancho Cucamonga, Calif.-based CO-OP Financial Services, said. "Digitization is something that should be infused throughout a credit union's strategic plan and should not be limited to a digital banking strategy. Think about chat bots for member service and self-service kiosks that augment your teller lines."
Other digital strategies to consider is building one-channel platforms and using data, readily available in the digital channel, to personalize the experience..
"Credit unions must start thinking about a single platform to drive all digital from internet to mobile and beyond," Robb Gaynor, founder and chief product officer for Austin, Texas-based Malauzai, said. This gives credit unions a consistent look and feel for all members across all channels.
"In order to personalize the experience for an end user you need to know a lot about that end user," Mike Carter, chief marketing officer of Omaha, Neb.-based D3 Banking, said.
Read the full list of digital strategies in the July 27, 2016 print issue of Credit Union Times.
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Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
