BY LARS HOLMQUIST
If you believe your credit union is too small to compete with the big banks when it comes to cutting-edge technology, you’re probably off base. Sometimes it’s more about the race than the finish. See how speed of adoption can win you customer loyalty and make you a contender against the bigger competition.
While big business can often leave customers feeling like a nobody, credit unions have the opportunity to ensure their customers are a somebody – by providing personalized service where traditional retail banks simply cannot compete. This personalized service encourages ease of use, both through technology and traditional means. Maintaining relationships with both individual customers and small businesses alike is a key strength of credit unions.
Loyalty in financial services is already strong. Recent research by Collinson Group, polling the affluent middle class, demonstrates that 68 percent of respondents said they were loyal to their bank. This response rate is well above other sectors such as travel, retail, insurance and telecom. Credit unions have done a great job at building loyalty. With a loyal customer base already existing, how can credit unions leverage technology to encourage customer retention and entice new members in an age of rapid-fire promotions and product innovation?
TECHNOLOGY AND EASE OF USE – THE TECHNICAL IS PERSONAL
Technology definitely has a way of making life easier. It allows business to be conducted more easily, making it crucial to stay up to date with the latest technology trends and offerings. Collinson Group’s Mass Affluent Survey shows that 45 percent of respondents use a banking app on their phone or tablet. Yet one of the biggest issues credit unions face when serving customers is adapting to new technology and acquiring it quickly. For example, not long ago, technology was implemented to conduct check deposits on a mobile device by taking a photo. Now, very few banking customers sign a check and walk into a branch to deposit it. Instead, millions of deposits are made via mobile app. Big banks launched this functionality a few years ago and now consumers not only expect it but require it.