October 7, 2015
In the recent article on credit unions, we defined the type of organizations, the way they operate as well as the overall industry landscape. The latest reports analyzed in the article indicated the upcoming decline of credit unions as traditional financial institutions. Increasing competition is coming from FinTech startups that are being extraordinarily imaginative with new experiences they offer. In order for credit unions to sustain as financial institutions and stay competitive, they have to evolve and overcome the traditional ways of operating.
In 2015, it is hard to imagine a financial organization that does not have an online presence and mobile options for users. Nevertheless, the experience surely varies. Credit unions were traditionally client-oriented, having the advantage of intimate relationships with members thus building positive experiences in the branch. However, over time with the smartphone revolution, the in-branch experience is no longer a priority. The customers’ preference is for the digital space according to the results published by The Financial Brand.
Credit unions, due to their community nature, had no necessity to actively hunt for their clients. They were built by people belonging to certain trades or territories, which enriched the member base instantly and automatically. With the new fierce competition, the traditional way of operating is no longer relevant and sustainable. In order to stay in the game, credit unions have to go through a complex omni-channel and digital tr ...