By Larry Hayes
As the pandemic was beginning in April of 2020, I wrote about the shift to online and the lasting impact of that shift. While I could not have predicted the emotional highs and lows of the last year, I expressed then the shift to online and the growth of online was here to stay. That prediction has proven to be absolutely correct.
According to a December article published by Forbes.com and authored by Blake Morgan, 81% of consumers in the United States had never bought groceries online as of 2019. In 2020, roughly 79% of consumers in the United States were purchasing groceries online –an increase to 70% from 19% in one year. Consumer packaged goods is only one example, but the online channel grew in virtually every sector and, for the most part, research seems to indicate we’re not going back.
While the pandemic forced credit unions and members to quickly transition to remote options, many online account opening and loan applications still fail to live up to their expectations in 2021. Long and unintuitive forms lead to poor user experience that ultimately drives abandonment. Research over the last year tells us a poor digital experience is the on-ramp to obsolescence.
A study authored by Banking Auditors International reported that in 2019, 41% of all consumers (all age groups) said they would switch financial providers for better, more robust mobile apps and digital services. In 2020 that number grew to 54% – and while the breakdown for specific age groups is not reported, that number is most likely even higher with younger demographics.
Rate of Abandonment
How many of your credit union’s online applications have been abandoned in the last year? And how long does it take to complete your digital application process?
Starting with the Great Depression, during times of economic hardship redit unions have emerged with greater market share. The dramatic shift to digital means those with a robust online presence will thrive, and those who do not invest in digital will struggle.
As research clearly shows, it’s more than simply having forms available online. It’s about reimagining the account-opening process to create a frictionless experience for consumers and businesses. Even if your organization has done away with all its old paper forms, digital applications must offer new efficiencies for both the end-user and the institution.
Functionality Needed
For example, does your digital solution include:
- Photo Data Capture
- Automated Approval and Account Opening
- Easy-to-Use Interface
- Online Funding Options
- Mobile Friendly Save + Resume Functionality
- Integration with Any Core System
eCU Technology is here to equip credit unions of all sizes with the tools and resources needed to compete and succeed in a digital world. Using a simple, agile design that integrates with any core system and offering a 100% mobile platform, we’ve helped slash online abandonment rates and launched applications that can be completed in just five minutes for both business and consumer memberships.
We're here to help you improve your digital experience for members while realizing new internal efficiencies.
Larry Hayes is President of eCU Technology.