MINNEAPOLIS, Minn. — Having convenient electronic access channels won't be enough in the coming years to compete for members' business, suggests EPL, which contends that credit unions must take the offensive.
"Credit unions have to get their arms around how they make things convenient for members and what's the next cool product," said Todd Proulx, VP of business development for EPL, which is headquartered in Birmingham, Ala. "Right now that's text messaging and pushing information rather than pulling."
Proulx contends that consumers are becoming so busy that financials that find ways to make consumers' banking lives simpler and save them time will win in the long run. "I think this is critical for the survival of the credit union system. Members don't want to have to go look to know when their expense check went in. They want to get a text that tells them when the check hit."
Members want that information through multiple channels, Proulx suggested. "I want it in a text message, an e-mail...Because if I have to go look, it becomes one more thing that I have to add to my plate."
A great deal of the emphasis on pushing information, such as text alerts, is due to generations X and Y, reminded Proulx. "I would be willing to bet you, because information is so readily available, that it's a very low percentage of kids under 30 who balance a checkbook."
According to Proulx, the next order of business for credit unions is capturing cell phone numbers. "What's the most important piece of information that you can get from the member? Today that could be the cell number. Because like a Social Security Number, you can carry your cell number with you the rest of your life if you want to. This is one convenient access point to members that credit unions need to get their arms around."
Credit unions have done a respectable job with e-services, according to Proulx, who said, "They are getting better at it, but have moved somewhat slowly." That has limited credit unions' success with generations X and Y, Proulx added. But in what may now be a rush to attract younger members, CUs cannot overlook seniors, whose expectations around convenience are growing. Proulx pointed out that since seniors often have two homes, they need access to the credit union when they are far away from a branch. "Don't forget that seniors are borrowers, and often need short-term loans for motor homes and cars."
While e-services have evolved more slowly than what was predicted 10 to 11 years ago, according to Proulx, the adoption of electronic services will pick up significantly with mobile banking. "The whole mobile thing is going to take off," Proulx said. "These mobile devices are getting more powerful. I have an iPhone and it can do just about anything I can do on my home on my PC."
