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Credit Unions are world-renowned for their impeccable financial assistance in areas involving financial savings and loan imbursements, prioritising customer-led accounts and tech. However, despite their great value customer churn is higher than ever.

Customer churn refers to the rate at which customers discontinue their partnership with a business or financial organisation and is a critical concern for institutions such as Credit Unions.

Tackling this dilemma head-on is speaker Scott Young, who shares his valuable insight into the future of Credit Unions. Please read on to discover more.

One key strategy Young proposes is targeting a younger audience. The new generation of customers has high expectations and significant demands from the companies they engage with. They expect services to be personalised, efficient and informative, combining a variety of media to create effortless user-friendly app interfaces.

Alarmingly, recent research shows that Gen Z has the least number of Credit Union memberships, despite wielding a huge $390 billion in disposable income. Young revealed that around 90% of parents don’t recommend their Credit Union to their children, highlighting the urgency for Credit Unions to enhance their efficiency and appeal to this lucrative demographic. Gen Z’s spending power is on the rise and with it their financial understanding and stability. An industry that values a holistic engaging experience will thrive against high levels of customer churn.

Moreover, alongside efforts to attract top talent, Credit Unions are advised to heavily invest in new technology to achieve optimal success in the digital age.

Alongside imperative investments into cyber-technology and info-technology, there should be a push towards investing in digitalisation and self-service infrastructure for members. Big tech companies and Credit Union leaders invested 36 billion dollars just last year alone, twice the sum of the previous year. De-prioritising tech in this era can result in huge obstacles and lead to resource concerns. Embracing open banking presents a unique opportunity for Credit Unions to differentiate themselves and leverage their size advantageously.

The increased demand for immediacy and the latest on-demand tech service is a result of the COVID-19 pandemic which has led customers to value convenience and versatility with the services they purchase. This means that on top of exceptional financial services, Credit Union memberships should also include cutting-edge tools to help people expand their financial education and empower individuals on their economic journey. To retain customers, Credit Unions must differentiate themselves by initiating a culture of immediacy. Providing tools that allow customers to easily check their card credentials and access funds instantaneously creates a confident and independent member base.

Additionally, testing and learning are also fantastic and rewarding ways to develop a customer relationship whilst developing your company. Create campaigns and involve your members in pilot opportunities, this shows innovation, inclusion, and forward-thinking - qualities increasingly valued by today's customers.

Credit Unions must adapt, innovate, and prioritise customer-centric strategies to thrive alongside technology.

By embracing new tech advancements, appealing to younger demographics, and creating a culture of continuous improvement, Credit Unions can navigate the challenges of customer churn and emerge as leaders in the financial services industry.

Let us know your thoughts at the SymEast Conference, where industry experts will explore emerging trends, best practices, and innovative solutions shaping the future of core systems. Credit unions have long been synonymous with community empowerment, which is why iO Associates are so excited to exhibit and attend this great event. Please find out more by clicking here.