Hybrid Banking Is Here to Stay

“Flexible” isn’t a word frequently attributed to the financial services industry. Regulations, policies and strict underwriting rules mean that credit unions often can’t adapt to member needs as easily as they would like. But when it comes to making staff and services available when, where and how members want, credit unions have never had more options to be flexible.

To learn more about consumer preferences, JRNI surveyed over 500 U.S. financial institution customers and members about their attitudes around interacting with their bank or credit union. Findings demonstrated that credit unions must expand the ability for members to meet in a branch, online or via web chat.

What three core trends are driving this?

1. Not surprisingly, COVID-19 has caused significant numbers of people to want to limit social contact in public places for the time being.

2. The expanding experience economy is conditioning members to expect more from credit unions. They are attracted to the institutions that offer good member experiences and flee the organizations that don’t. Online reviews and social media posts help members easily spot great, or poor, member experiences.

3. The rise of remote work has shown consumers that it’s possible to meet anyone nearly anytime instantly via video appointments without the hassle of drive time, traffic, lines and waiting in lobbies. Some credit union members will prefer to meet with staff online, while others will prefer to still meet in person.

While credit unions are seeing a downturn in in-branch visits, overall interactions, whether in-person or online, are still key to offering great experiences and building brand loyalty. And the survey findings support this.

• Forty-five percent of financial institution customers and members would prefer meeting with an agent in person compared to 34% who prefer a meeting via video.
• But consumers want the option of video appointments. Seventy-seven percent of respondents would prefer to go fully remote. But in-person appointments aren’t going away, as 23% said they still want the option to visit a physical credit union branch.
• Many members have found it difficult to interact with their credit union in the past six months. Thirty-three percent of respondents have found it challenging to talk to the right person at their institution.
• Bad service was the number one reason members leave. Among other top reasons why people consider switching to a different financial institution included unhelpful customer service, a poor online banking experience and not enough physical branches.
• Also, inflexible hours will drive away some members, with 39% of respondents having considered switching to a financial institution with more flexible service hours.

What these findings all showed is that the key for credit unions is offering flexibility so members can decide what’s best for them.

Respondents also noted that online chat and online banking add value, with 68% wanting to use a live chat option to speak with an agent from their institution’s website. Women, especially, want online chat, with women nearly two times more likely than men to want to interact with via chat. And high-income members (over $110,000) are 13% more likely to want online banking.

While online banking is important, credit union members still want to see a variety of staff in person. Members prefer tellers, loan processors, mortgage consultants, investment advisors, relationship managers, loan officers and wealth managers to be available to meet in person. The same group reported that they want access to credit analysts via video.

The survey demonstrated that different kinds of service require different kinds of interaction. The top reasons consumers want to bank online are to manage check payment issues, overdraft services, credit card issues and debit card issues. However, members want to visit a branch for loans, including mortgages, home equity loans, small business loans and commercial real estate loans. The commonality among these transactions is the many options available and a desire to discuss it with an expert.

Businesses that want to matter are striving to improve the experiences they provide, and customers are being conditioned to expect more from businesses in exchange for their loyalty. Leading credit unions recognize that giving their members flexibility is key to improving member experiences.

In-branch appointments aren’t going away, and neither are video appointments. The data shows that credit unions that make it easy for their members to bank how they desire, including scheduling appointments and meeting however they prefer, will attract more members, retain their existing ones, and deliver the experiences that fuel growth and loyalty.

Nick Barnes is Practice Director, Financial Services for JRNI, a U.K.-based provider of an experiential relationship management platform.