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The other day I spoke with a friend who was looking for a new financial institution. I began to tell her about the benefits of credit unions – the friendly staff, the minimal fees, the great rates – and her response was, “I can’t bank at a credit union, they’re not mobile and they don’t have the technology that I need."
The reputation that credit unions are far behind in technology had done its damage. It kept a potential member from even considering the idea of a credit union, and it possibly does that every day. If others feel the same as my friend, this can really hurt your appeal to future prospects, especially younger, tech-savvy savers and borrowers that do everything online and on their phone.
A survey geared towards financial institution seekers found that the second most important banking feature prospects want is online and mobile banking.2 Andage had a lot to do with their banking preferences, with 22.8 percent of respondents between the ages of 18 and 24 rating online and mobile banking features as most important — more important than fees, location, or customer service.2
The popularity of smartphones and the availability of mobile connectivity have caused a surge of members to demand easier and faster access. Could you stand to lose future prospects and possibly current members because you have not invested in growing and promoting your technology?
A recent study showed that approximately 60% of smartphone users, who switched financial institutions last year, did so primarily because mobile services were not offered at their current credit union or bank.2
Technology services including online and mobile banking, are definitely becoming less of a commodity and more of a necessity. When prospects discount a credit union because they assume it doesn't have the technology; that hurts business. And with the importance of online and mobile services to the next generation of prospective members, the time has come to show that you can be just as technologically savvy as the next FI.
As with anything, price is always a concern, though it may be more affordable than you think. According to Javelin Strategy and Research, the average ATM transaction costs financial institutions $1.25.1 But what about those members that prefer to access their finances and apply for services from home? The average desktop computer or online transaction costs financial institutions 20 cents and the average mobile transaction costs only 10 cents.1
Combining the increase in demand, the risk of losing members, and the potential cost savings, why would you not be driven to improve and expand your technology?
To compete, your technology needs to be creative, dynamic, member-centric, scalable, and support multiple business channels. You also need a secure system to help ensure the information you receive is controlled and protected throughout the loan origination process.
Transamerica gives you the power to connect and communicate with your next generation of members easily. We offer a suite of technology options to support any size, scope, or type of credit union:
Transamerica Financial Solutions Group can help you provide the personal member–centric experience previous generations of members have praised, while fusing that with the technological innovations tech-savvy members crave. Our dedicated and experienced professional team delivers optimal solutions to businesses by valuing the organization’s vision as well as their members’ needs, preferences, and buying behavior. We will be happy to help your credit union design a plan that will help you succeed.
1 The Wall Street Journal,“Mobility Becomes a Banking Essential,” (Apr. 2014).
2 GOBankingRates, “45 Percent of Bank Customers Care More About Fees Than Rates, Convenience and Service,” (Feb. 2014).
Brooke Strohman is the Vice President of Client Management & Technology Servicesfor Transamerica – Financial Solutions Group. Brooke is responsible for setting strategic direction and leadership for the both the insurance and technology divisions of the company. His main focus is leading online lending and workflow solutions that are designed exclusively for credit unions and banks to automate product sales and delivery for account holders and prospective members. With over 25 years of experience in lending, loan servicing and technology, Brooke is able to understand the inner workings of lending institutions and help create creative solutions for our partners. He can be reached at(800) 365-4925 or firstname.lastname@example.org.
Transamerica Life Insurance Company (Home Office – Cedar Rapids, IA) and affiliated Transamerica companies provide insurance products and services. Through the Life & Protection division, the Transamerica companies offer a wide array of life and health protection solutions with a common purpose: to protect families and their dreams.
As part of the Life & Protection division, Transamerica Financial Solutions Group caters to the needs of credit unions, community banks, and larger financial institutions. We offer specific programs for credit insurance and debt cancellation products including marketing strategy, training, marketing support, technology software, and related services.
This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.
If you are interested in contributing an article on CreditUnions.com, please contact our Callahan Media team at email@example.com or 1-800-446-7453.
June 2, 2014
6/3/2014 08:22 AM
A very timely and informative article
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