Is Your Digital Experience One You Are Proud Of?
Just five years ago, online banking was still considered an add-on service to physical locations. But we may have reached the point with many members where your branches are considered the add-on. Is Your Digital Experience One You Are Proud Of? In fact, 40% of consumers have not visited a credit union branch in the last six months.
Along with the increase in usage of online banking come concerns about account security and fraud. Credit unions can soothe the fraud fears of their members by offering two-factor authentication for their accounts. This allows members to confirm their identity with a unique authentication code that is texted directly to their mobile device. It is a must these days to provide your members with a secure digital experience.
To attract and retain members that make frequent use of online banking capabilities, your digital experience needs to go the extra mile to provide a secure environment that protects their account information but also makes them aware of this improved security.
Your Online Brand
You wouldn’t feel comfortable pulling up to a branch with bullet holes in the window, so why wouldn’t you make sure that your digital experience is as inviting as possible? As your members rely more on online banking, your website, user interface, and remote services (digital experience) may be the primary attributes that they use to judge your credit union and brand. Also, with the increased emphasis on your website, any online banking outages would be viewed as if the door to their regular branch were locked during business hours. When it comes to your website, design with a mobile-first (and maybe mobile only) mentality.
With smartphone usage at 64%, and with many of those using it as their primary method to access the Internet, your mobile strategy and the mobile capabilities may determine your future growth and success.
Whether through mobile web versions of your online banking portal or standalone mobile banking apps, you will need to educate your members that your digital strategy allows them to access their accounts and get updates on their purchase activity. You will also need to make sure that your payment cards are compatible with the latest mobile payment technology from Apple, Google, and Samsung. Forrester expects mobile payments to clear over $142B by 2019 – will your members be participating? They will. But will they be using your credit and debit cards?
Another key component of your digital experience (and coincidentally one of the elements with the most room for growth) is peer-to-peer (P2P) payment technology. With plenty of competition from independent providers like PayPal, being able to offer easy-to-use P2P payment options is a must to keep millennial members happy. Remember, millennials are the largest segment of the workforce – which means catering to them ensures your long-term relevance.
New Vendors for Consideration
For many credit unions, now is the time to invest in the digital branch. The time has come, you have kicked around your “old” online banking or mobile product long enough. There are newer vendors and plenty of options for credit unions considering a change. The speed of which these vendors are providing changes and updates at the speed of the consumer is impressive. It’s time for credit unions to understand the positive return of an investment in digital channels. This goes for both member servicing and convenience as well as operational efficiencies and cost reduction (if you can drive members toward self-service channels). With millennial members continuing to be the fastest growing segment of the financial services market, the progression of your online, mobile, and connected technology can help your digital experience to be one of your biggest engines for new account growth.