There is an increase in pressure for credit unions to diversify their services today to satisfy members. These two types of members demand different things. The younger generation wants newer services such as streamlined payments, whereas the older generation requires in-person services.
The competing demands mean that credit unions have to provide the best service. Should the focus be on expanding in-person channels for old members or diving deeper into modern channels to attract new members?
Although most financial companies have solely focused on digital transformation, they overlook the importance of omnichannel banking.
The banking industry is all about catering to members over a long period of time.
It has been successful due to the continuous effort of selling new products throughout the lifespan of members. According to research, the more channels credit unions or banks use to engage with customers, the more products they purchase.
Contrary to what you might be misled into believing, the younger generation also cares about traditional channels. Although more people aged 18 to 29 prefer mobile banking, they do demand personalized services. About 74 percent of people aged 18 to 29 have gone to a bank to make a transaction during the past two years. The reason behind visiting the branch is that they had a preference for in-person interaction and felt comfortable. On the other hand, around 85 percent of 60-plus-year-olds visit a branch for most of their transactions.
Gen Z and millennials demand the latest services. However, it does not mean that old channels have diminished. There are many reasons why the younger generation stills want to visit branches. A theory behind their behavior is that they prefer a certain degree of touch that continues to be offered by traditional banking. Regardless of the sentiment, omnichannel banking will only grow.
Omnichannel Strategy Risks
Even though an omnichannel strategy offers plenty of advantages like an improvement in growth and member experience, it does come with some risks. To succeed, credit unions have to increase the acquisition of new members.
More Channels Increase Risk
Although new channels increase opportunities, it also means that monitoring member behavior and channel health would be more difficult. Despite the fact that credit unions know how different actors behave, they still need to predict the impossible to succeed. There are plenty of cybercriminals who are looking for an opportunity to exploit any untested channel.
Financial Offenders Are Becoming Smarter
With technology improving and helping detect criminal financial activity, financial criminals are molding their techniques and coming up with complex schemes to detect the limitations of the technology used by credit unions. It is due to this reason that members are having trouble trusting. To beat financial criminals, you have to increase technology investment to adopt the latest security measures.
Once you finish reading this post, you will know everything there is to know about omnichannel strategy and if it is right for credit unions. To succeed, you have to utilize the latest technology.