The once inextricable link between trust and long-term relationships may be fading. That certainly seems to be the case when we consider the unprecedented trust consumers are placing in the youngest of financial firms. Between 2021 and 2022, PayPal grew its primary financial relationships by a factor of five.
While PayPal isn’t exactly an infant in the world of finance, consider Robinhood and Chime. Robinhood grew its PFRs by a factor of 4, Chime by a whopping factor of 18. Neither has been around longer than 10 years.
Increasingly, it seems, consumers trust utility over tenure. In the minds of many, an elegant digital experience now tops the former tenants of trust – things like privacy, data security and people-over-profits. Deliver an experience on an app that knows its user by name, offers personalized advice and completes daily financial tasks in seconds, and PFR dominance is yours.
Choosing Optimism and Action through Member-Centric Strategy
If this sounds discouraging, chin up. The great news for credit unions is that delivering the elegant, digital experience financial consumers want is completely doable. And, because that experience will layer over existing credit union competencies around privacy, data security and people-over-profits, you will have the competitive advantage.
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