Are your card processing contracts coming up for renewal in the next 18-24 months? Then it’s time to consider bringing in an expert negotiator to score you lower fees, secure improved terms, and acquire new services that can help you better serve the single largest market out there today: Millennials.
The Power of the Millennials
We hear a lot about the power of Millennials, and for good reason—born approximately between 1982 and 2002, they’re the largest generation in American history and in our workforce. Millennials represent your credit union’s largest potential member base … are you keeping up with their desire and demand to bank, purchase, and receive alerts via mobile devices—also known as the “digital wallet”?
Millennials’ affinity for and reliance on technology make for some astounding realities for credit unions:
- One in three Millennials are open to switching to another financial institution within the next 90 days
- Millennials are three times more likely to open a new account using their phones versus in person
- 23% of Millennials cite lack of a mobile app as the main barrier to financial institution engagement
- 94% of Millennial consumers actively use online banking — many via their smartphones and often never setting foot inside a branch
If your credit union doesn’t currently offer digital wallet access for members, you’re simply not meeting the needs of a large and influential segment of the population.
Digital Wallet is Waiting for You
Selecting digital wallet services can seem daunting, but they are actually right under your nose, waiting for you.
When you negotiate card processing agreements, digital wallet services are often part of the sales pitch. But, for one reason or another many credit unions aren’t quite ready to take advantage of the offers—not enough awareness of the importance of offering digital wallet, not enough in-house experience with the services, not enough funds available, etc.
That’s where having trusted advice can make an even more significant impact. Often without realizing it there could be many other missed opportunities if you aren’t fully prepared or able to put it in focus when tackling complex contract negotiations like card processing, internet banking, core processing or card brand agreements.
Once you have digital wallet up and running, you’ll see the interest it garners from tech-savvy members and be relieved not to have been left behind as this new way of banking rapidly turns traditional banking on its head. As a bonus, you’ll likely see an increase in revenue from greater card usage when you open up digital payment platforms.
Everything to Gain
When you start thinking like a Millennial and serving them on their terms, you’re not only positioning yourself as a forward-thinking credit union—you’re making it easier for your members to engage with you and utilize your services. And that’s always a worthy objective that pays off in so many ways.