LAS VEGAS-Credit unions missed many people who tried to open accounts online during the Bank Transfer Day period, and they continue to lag in key technology elements, according to Jim Van Dyke.
Van Dyke, founder and president of Javelin Research, told attendees at the 35th Annual Directors' Convention here one solution is to hire college students to mystery shop five institutions by trying to open an account-without introducing bias by telling the subjects which CU is asking them to perform the task.
"It does not stop with account opening," he continued. "Account alerts are a no-show at credit unions, but are very valuable to consumers. Credit unions need to let people know when they have a low balance."
For research purposes, Javelin divides financial institutions into four categories: giant banks, large regional banks, community banks and credit unions. Giant banks have greater penetration of new technology, especially mobile technology that younger consumers want, Van Dyke cautioned. He said younger generations who bank at giant banks and large banks are least likely to visit branches for deposits and withdrawals.
One trend Javelin is seeing is consumers want to have fewer financial providers. Van Dyke said CUs are doing the best job among FIs of combining credit cards with other services.
"Credit unions can increase profitability, acquisition and loyalty by making a simple system to cross-sell," he said.
