Optimizing the Member Experience in a Digital-FirstWorld


As consumers increasingly prefer digital over physical services, credit unions have begun to overhaul their customer journeys, placing usability and security at the forefront of the member experience. Although aiming to deliver the seamless and delightful experiences that digital customers demand, questions remain for credit unions:

  • Which digital banking tools appeal most to consumers today?
  • How do we build trust in a digital world?
  • Which innovations in banking and payments are rising in popularity? 

To answer these questions and more, Loqate recently surveyed 1,500 U.S. consumers and uncovered the following banking and personal finance trends that are shaping the future of financial services. 

Consumer preference for the convenience of mobile banking is here to stay. On the heels of the pandemic-driven shift to digital financial services, consumers are turning away from more traditional forms of payment and banking. Ninety-one percent of consumers report using some form of a digital/mobile banking service, from mobile checking to stock trading.

When it comes to mobile banking’s most popular uses:

  • 32% use mobile apps for day-to-day activities traditionally reserved for in-person banking at a branch or ATM
  • 22% use mobile check deposit
  • 22 use mobile payment apps
  • 11% use investment & stock trading apps

Digital banking adoption varies by age. The comfort levels for digital banking tools show slight differences across age groups. While it’s no surprise that younger generations reported using digital banking tools the most, here’s the breakdown:

  • Only 2% of the Millennial age group doesn’t use digital banking or personal finance tools.
  • 22% percent of Baby Boomers and 7% of Gen Xers don’t use digital banking tools.

Establishing digital trust with members is critical. Despite the widespread adoption of digital banking solutions, consumers maintain a slight distrust of these tools due to their complicated UX and lack of human engagement. Among the reasons respondents are not using digital banking or personal finance tools:

  • 34% are happy with their current (offline) services
  • 21% prefer to speak to a human about their finances
  • 27% just don’t trust digital. 

The majority of consumers are open to exploring biometric technology. As digital banking becomes commonplace, a quality experience weighs heavily with consumers as they decide where to bank. Easier-to-use mobile apps and swifter forms of digital identity verification are attractive to consumers. Biometric authentication (facial, voice or fingerprint recognition) is a welcome form of identification for 63%, while 16% have not yet warmed up to the still-developing technology.

It’s clear that most post-pandemic consumers are moving away from traditional banking methods and increasingly accepting of new data-driven tech innovations. With these tips, credit unions can deliver an experience that meets the demands of today’s digital consumers:

  • Ensure the transition from in-person banking to digital is easy by streamlining the online or mobile UX. This can be as simple as requiring fewer form fields and offering quicker address data entry via an address autocomplete solution.
  • With more tech-savvy seniors making a move to digital, customize the online and mobile UX with a focus on speed and functionality to ensure a good experience for every member.
  • Forty-seven percent of consumers “strongly dislike” additional steps when verifying their identities. Address, phone, and email validation can help increase member trust without increasing friction and prevent fraud by accurately matching customer data.
  • Speed, ease and accuracy are critical to a winning member experience. Accurate address data coupled with instant biometric identity verification will help successfully onboard new members, speed users through compliance procedures, identify fraud and reduce costs.

About the Author:
Matthew Furneaux, Director, Location Intelligence at Loqate. Matthew is a location technology veteran with over 20 years of experience in helping global businesses reach their customers globally.

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