In the past decade, the digital transformation has reshaped how credit unions are expected to interact and communicate with their borrowers. This is due in large part to advances in Fintech and evolving consumer expectations. As your member base shifts to a larger number of millennials and their younger Gen Z counterparts, traditional forms of communication will likely fall on deaf ears. According to Pew Research, 93% of Millennials in the U.S. own a smartphone, so one can conclude that the best way to reach and market to this demographic is digitally and electronically.;
This is not just a trend among younger Americans. The fact is, members of all age groups are busier than ever with demanding work, personal, and social schedules. For better or for worse, busier schedules and advanced technology has shifted the way that Americans communicate and interact with their lenders.
Meet Shifting Consumer Expectations
Back in the day, if a member needed to apply for a loan, make a payment, or resolve account issues, visiting or calling their credit union was the standard way of getting these tasks accomplished.
These days, members can simply visit an ATM or log in to their home banking portal to pay their loans and conduct other transactions. Most modern banking can all be done online—in some cases, from a smartphone. The reason why it’s so critical for lenders to know, understand, and accept this shift in consumer behavior is because it affects the way that you successfully gain new account holders and communicate with existing members.
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