Grow deposits and have a strong payments strategy
How can a credit union stay relevant as things change with checking, cards and digital—and among generations?
The diversion of funds from checking accounts to such alternative accounts as PayPal, Amazon, Playstation, health savings accounts and robo-advisor tools is negatively impacting credit unions by diverting money away from checking accounts, according to Tony DeSanctis, senior director for CUES Supplier member and strategic provider Cornerstone Advisers, Scottsdale, Arizona. Cornerstone’s director of research, Ron Shevlin, calls this negative trend “deposit displacement.”
“Growing deposits, tied with a strong payments strategy, should be a top priority,” DeSanctis says. “Our research shows that the median new checking accounts per branch is down 18 percent year over year. Paying attention to generational differences can help to inform strategy and ensure you are acquiring customers in the channels they chose to interact, he notes.
Checking Deposits
“Chime Bank, for example, has entirely reframed its onboarding approach for direct deposit with customers,” DeSanctis says. “Rather than a method of forwarding someone’s pay to the bank, a staid and frankly boring presentation, it approaches direct deposit as a way for the customer to get paid two days early.”
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