The Digital Opportunity for Credit Unions Report uncovers how digital experiences are driving customer loyalty and what it will take for them to switch banking institutions
Mobiquity, a digital consultancy that designs and delivers innovative digital products and services for the world’s leading brands, released today results of The Digital Opportunity for Credit Unions Report. This report showcases an opportunity for smaller institutions and community banks to compete with their larger rivals and increase market share by adopting digital tools. Mobiquity surveyed over 1,000 customers ages 18 and up in the U.S. to uncover generational banking behaviors, satisfaction levels based on where customers bank and what would encourage more consumers to bank at credit unions.
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“If credit unions can master converting that same feeling and connection of customer service into a digital banking experience, they have the potential to capture the business of younger generations and those to come.”
According to Mobiquity’s findings, how customers rank their ideal banking experience is greatly impacted by digital accessibility. Currently, satisfaction is highest among those who bank at credit unions and community banks for their primary banking needs, particularly among customers over the age of 45. While large banks are the most popular choice (45%), almost a quarter (24%) of respondents bank at credit unions and do so because of the great customer service—especially for those aged 60+ of whom 70% rank this value in their top three. For younger generations, both easy-to-use digital tools and having a wide range of digital options continue to be top factors for their ideal banking experience. However, these same younger customers strongly agree they would be more likely to switch to a credit union or small bank if the online banking was as good as the services at a larger, national bank (50%).
“It’s no surprise that the digital experience continues to be a driving force for customers when choosing a banking institution,” said Matt Williamson, VP of Global Financial Services at Mobiquity. “Our latest Digital Opportunity for Credit Unions Report found that those who are currently banking at credit unions do so because of the community feel and level of customer service. If credit unions can master converting that same feeling and connection of customer service into a digital banking experience, they have the potential to capture the business of younger generations and those to come.”
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Additional key findings include:
- Switching banks is inconvenient: 46% of all consumers stated that they don’t bank with a credit union due to the hassle of switching.
- Large banks are only concerned with profits: 61% think large banks are more concerned with making profits than looking out for their customers compared to 19% thinking credit unions are more concerned with making profits.
- Digital banking has grown: 10% use digital banks and do so because they favor the ease of digital tools, peer to peer lending and the ability to invest in cryptocurrency.
- Giving back: 28% of those over the age of 60 place more importance on banks investing in their local communities, while younger consumers (24%) are more specifically concerned with investment in sustainability and authentic alignment with their personal values.
- Customers want an all-in-one experience: A majority (70%) of consumers agree that if banks provided everything they wanted in an easily consumable format, they would prefer to do all of their banking within one institution.