Only 20% of credit union members say they plan to sign up for new credit union services next year, half aren't sure and 30% are definitely not planning on adding new services, according to new data from Ann Arbor, Michigan-based analytics firm CFI Group.
Whether a credit union member plans to add services next year may also be a factor of age. About a third of "younger millennials" (18 to 25 years old) said they expect to add services in the next year, but only 27% of older millennials (those 26 to 34) said the same. Only a few Gen Xers (18%) and Boomers (14%) said they plan to add products in the coming year.
"The ray of hope for credit unions to sell new products to members lies foremost in younger millennials, but also in the relatively large 'Not Sure' areas for the other age groups. For older millennials, Gen Xers, and Boomers, that gray area is a large 40%-60%," the report said.
Overall satisfaction levels flat over last year
The survey of 487 credit union members asked respondents to rate their member experience with their primary financial institutions. The overall satisfaction score was 84 out of 100 in 2017. That was the same score as 2016, but scores have generally been trending down since 2013. Back then, the industry had a satisfaction score of 88, followed by scores of 86, 87 and 84 in 2014, 2015 and 2016, respectively. Credit unions have consistently outscored banks during that time, according to the data.
CFI also reported that year-over-year changes for seven key member experience drivers either dipped or stayed flat in 2017. Satisfaction scores for branch convenience, branch staff, rates and fees and information/communications all dropped by between one and three points. Satisfaction with products and services, mobile applications and online banking all remained the same. In a three-way tie, branch staff, mobile applications and online banking had the highest satisfaction ratings at 89 this year.
Sheri Petras saidcredit unions must innovate with new offerings that center on enhancing the member experience."
Data-security confidence lagging for some
Data breaches and other security problems may be weighing on credit union members, according to the survey. With the exception of younger millennials, fewer respondents this year said they were confident their credit unions will protect their information.
"Members generally feel their information is safe with credit unions, creating a position of trust that credit unions can leverage. Credit unions must continue to innovate on simple account management tools that allow members to manage their network of financial connections easily and securely," it said.
Digital banking not just for the young
In addition, the CFI survey showed that 28% of respondents have used a smartphone-based payment service. Older millennials led the pack at 32%, but other age groups weren't far behind. A quarter of baby boomers said they've used a smartphone-based payment service; 28% of GenXers said the same. The lowest use rate was young millennials at 27%.
"As financial products and services available to the average consumer grow at a rapid rate, credit unions are at risk of simply providing the account piping needed for members to connect to new, innovative financial tools. To counter this trend, a credit union must connect to an ecosystem of financial tools while remaining the primary point of financial management," it said.
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