It’s a balancing act…challenges vs. opportunities of which there are many.
Baby Boomers (born between 1946-1964) start turning 65 in 2011. Now the average age of the credit union member is approaching 50. By 2030 the older population is expected to grow to 72 million, nearly 20% of the population. They are past the prime borrowing years of (25-44).
Do credit unions have the right kind of mix for their products and services?
- Convenience – How convenient is your one branch Credit Union? Or a credit union that does not deal in cash? Can you imagine in the 21st century that there are some that still do not deal in cash? Right here in Memphis.
- Mobile Banking, most larger Credit Unions offer, but what about the small to mid size credit union?
- Online Banking is now a standard feature at banks and now credit unions. How secure?
- Debit cards are emerging at the payment instrument of choice. According to a PULSE survey, 54% of consumers prefer using a debit card at point-of-sale over other types of payments. (Check 13%; Cash 15%). The new regulation E will deal with overdraft fees to take effect July 1st.
- Investment services – most banks offer this, however only the large credit unions offer leaving the small to medium size credit union to figure it out.
- The gap between banks and credit unions offering free checking is narrowing. With credit unions at 71% vs. banks at 57%.
Credit Unions need to be good at online banking along with the personal touch. Most members will want these services for free. Above all maintain member confidence that their information is secure, and that the credit union is in total compliance. Failure in these areas will quickly erode member confidence and be the catalyst for them changing financial institutions.