MALVERN, Penn.--By 2020, credit unions will have seen a complete shift in consumer focus, predicts Steve McAnany of Akcelerant Software.
That is: A shift to the focus demanded by Millennials.
“They are just starting to have a major impact within the financial industry, and financial institutions are going to have to begin to alter their day-to-day practices to match the needs of this generation,” he said.
And while credit unions are uniquely positioned to capitalize on this consumer base, they must be mindful of alternative financial providers such as Kabbage and ApplePay, McAnany cautioned, adding, however, that credit unions “should also realize that these providers will likely be regulated in a similar fashion as credit unions as time progresses.”
Capturing the Millennial generation, McAnany advises, will rest on credit unions’ ability to earn the generation’s trust over other financial providers. “Building trust and promoting the credit union’s values while serving the account holders in a fiscally responsible way is the most effective method of making sure the member enlists the credit union as their main provider for all of their financial needs,” he said. “Building strong relationships now will create success for the future.”
Determining the right products and services mix to build that trust depends on three considerations, according to McAnany. First, credit unions should keep an eye on alternative financial providers – but not to worry too much. “Now is the time to learn from them,” he said. Second, every credit union must consider the omnichannel (i.e, reaching consumers wherever and however they choose to do their shopping). “It’s here to stay,” he said.
“Third is what I consider to be a sleeping giant - the need for a member service solution,” McAnany said. “There is not enough attention being paid to implementing a common service platform that can present consistent messaging across all member interactions.”
--Pat Keefe