Millennials Want Applying for Credit to Be ‘Subscription Simple’
The last year and a half signaled a change in course around consumers’ digital banking expectations. Most users now highly value the quality and ease of digital experiences, one United Kingdom study found, with 81% of adults saying this determines their choice of financial institution (FI). The need for ease has never been greater.
While more aged generations are still slow to move to digital banks, millennials and bridge millennials are keen to utilize their convenience. A recent PYMNTS study found that 57% of these groups feel drawn to digital banks. Of those interested, 37% said the faster transfer of funds is a factor, and 31% said they want transfers to be more convenient and easy. These consumers also perceived digital banks as more secure and offered access to the latest technologies.
The “Credit Union Tracker®” explores the growing importance of on-demand banking to attract new credit union members and retain current ones as younger consumers’ expectations around banking become increasingly immediate.
Around the Credit Union Space
A recent study found that 45% of consumers most frequently leverage easy-to-use technology — especially apps — to manage their bank accounts. This number sharply increases when looking specifically at younger consumers, with 58% of millennials and 56% of Generation Z consumers leveraging apps for this purpose. Baby boomers still prefer online banking on a laptop or PC, with 38% saying this is how they most often access their accounts. Twenty percent of baby boomers prefer to bank in person at a branch, while just 6% of Gen Z consumers prefer to conduct their banking this way.
The days of going to a local branch to open a bank account may soon be over if consumers have their way. A recent study commissioned by United Arab Emirates company IDnow found that eight out of 10 consumers want the bank account opening process to be digital. Additionally, the process needs to be as simple and painless as possible to retain these users. Nine out of 10 consumers complained that FI onboarding processes take too long, and 86% said they have abandoned a bank account onboarding process they found too complex.
For more on these and other stories, visit the Tracker’s News and Trends section.
Learn How Truliant Federal Credit Union Offers On-Demand Banking For Mobile-First Members
Young consumers want their banking on demand — and they want it now. With the same ease that they can instantly summon an Uber, these consumers expect to accomplish virtually any banking task quickly and easily, preferably from a smartphone. These consumers’ expectations of their FIs arise from their experiences with products outside the financial services realm.
To get the Insider POV, we spoke with Jeff Hibbard, chief digital officer at Truliant Federal Credit Union, to learn more about the tools CUs must use to attract and engage new members.
Meeting Members’ Need For Immediacy
Credit unions have a secret weapon that some FIs may struggle to attain: member satisfaction. CU members have higher-than-average member satisfaction rates. Of those satisfied members, 6% said convenience and ease of use of online banking capabilities are the top reasons they are satisfied, and 5% cited convenience and ease of use of mobile banking capabilities as the most important reason.
To learn more about how CUs are meeting member needs for immediacy, read the Tracker’s PYMNTS Intelligence.
About the Tracker
The “Credit Union Tracker®,” a PYMNTS and PSCU collaboration, explores the growing importance of on-demand banking to attract new CU members and retain current ones as younger consumers’ expectations around banking become increasingly immediate.