In order to satisfy members, credit unions (CUs) will need to strengthen their commitment to disseminating innovative digital products and services. The issue is becoming increasingly important, especially due to the fact that the satisfaction of CU members decreased from 92% in 2018 to 86% in 2021. PYMNTS research shows that many consumers in or in their peak years appreciate innovative digital services such as mobile deposit, digital wallets and instant card issuance in a digital wallet.
The most far-sighted CUs are working to reach out to these consumers through innovative digital products and services. If more CUs follow their example, the industry will be better prepared to reverse the decline.
Credit Union Innovation: Responding to Members’ Requests for Digital Financial ServicesPIMNC and PGKU The collaboration provides a broad analysis of the current state of CU innovation in the United States, exploring the CU members’ interest in innovative digital financial products and services – and the CU’s efforts to meet this growing demand. We surveyed a census-balanced group of 4,832 U.S. consumers, 101 CU decision-makers, and 51 FinTech executives to find out what kind of contactless payment innovation CU members would like their CU to prioritize, and find out if CUs invest in these areas of interest.
Some additional key findings include:
• 86% of CU members said they were “very” or “extremely” satisfied with their core financial institution (FI). This rate is reduced by 6% compared to 2018, which puts the COP on a par with digital banks. The decline in member satisfaction highlights the challenges faced by CUs when incorporating innovative products and services to regain competitive advantage.
• Twenty-four percent of CU members would switch to more innovative products. CUs, which provide these “potential switches” with more digital products and services, can prevent them from jumping off the ship. A PYMNTS study shows that potential switches are more likely than other consumers to want to make checks using mobile apps, issue CU cards directly to mobile wallets, and make and receive peer-to-peer (P2P) payments.
• Nineteen percent of CUs were classified as “early launches” of digital products and services in 2021, nearly five times more than the 4% of CUs in that category in 2018.. Only 17% of CUs were classified as “subscribers” in 2021 compared to 40% in 2018. Thirty-six percent of CUs are classified as “quick followers” and insignificant behind early launchers.
As COPs work to maintain and build membership, the attractiveness of consumers who are focused on digital technology can become a major driving force. Investing in innovative products and services can be a path to success for those CUs that want to increase member satisfaction and regain their place in the financial sector.
To learn more about how credit unions are introducing innovative digital products to maintain member satisfaction, download report.