While credit unions (CUs) continue to hold a position of primacy with older consumers, the share of millennials and bridge millennials who consider themselves members is a fraction of that of older demographic groups. At the same time, the share of Gen Z consumers who now turn to UCs for their banking needs is almost double the share of millennials who are UC members. Providing the digital banking tools and services that young consumers have taken for granted could be a valuable step towards re-establishing UC as an important player in youth demographics.
To begin making inroads into the younger demographic that UC enjoys among its seniors, it won’t be enough just to have the right tools and services. UCs will also need to learn how to engage and educate consumers about what sets UC apart and sets them apart from their competitors. This means learning how to market in an increasingly crowded space where just being an important part of the community in the physical world alone won’t be enough to get UCs the brand recognition they need.
The last Credit Union Tracker® explores how ensuring young consumers have the right tools can turn them into members, creating lasting relationships.
Around the credit union space
According to a recent survey, young consumers show a stronger preference for national banks than for credit unions. However, more consumers aged 18-24 use credit unions than those in the 25-34 or 35-44 age groups, creating an opportunity for UCs to bounce back with the younger generation. banking consumers. UCs have an opportunity to tap into these groups if they can offer the digital tools that many have come to expect alongside the member-centric mission that UCs are known for.
Unify Credit Union, the first CU to offer cryptocurrency trading services to its members, now has over 6,000 of its 286,000 members using its bitcoin trading services provided through the New York-based NYDIG platform. The platform averages 5,500 transactions each month and has completed over $600,000 in bitcoin transactions. With Unify making 2% on every transaction, this has meant a significant increase in non-interest income for the CU. This kind of profit potential has caught the attention of CUs across the United States, according to Credit Union National Association (CUNA) spokeswoman Lauren Williams.
For more on these and other stories, check out Tracker’s News & Trends section.
Amplify Credit Union on building a strong foundation for digital
Financial institutions (FIs) of all sizes and types have many options for expanding their digital offerings and a seemingly endless number of innovation paths they can take. Before UCs get dragged too far down this digital path, they need to make sure they have the backbone to support the digital products and services they want to provide to their members.
In this month’s feature, Lisa Larson, VP of Payments and Operations at Amplify Credit Union, talks about Amplify’s efforts to meet members’ needs for digital banking tools while ensuring a solid foundation on which the products and services are based.
PYMNTS Intelligence: How UCs can increase membership with innovative digital offerings
Fifty-five percent of UC members already turn to a secondary FI for at least one product or service, but 45% would prefer all their accounts and financial products to be managed by one FI. UC members want their CU to be the only place they have to go to have all of their financial needs met, but to take advantage of this, CUs will need to ensure they are positioned to be members of the FIs to turn to, regardless of their stage of development. life or needs.
This month’s PYMNTS Intelligence examines how UCs can use digital products and services to secure their positions as primary FIs for members and prevent portfolio leaks.
the Credit Union Tracker®a PYMNTS and PSCU collaboration, examines the latest trends and developments shaping the credit union space and effectively uses digital innovation to ensure member satisfaction.