This article was originally published on Credit Union Times.
Over the last decade, the function of a credit union branch has shifted and there are two contributing factors: The global pandemic and expedited digital transformation.
First, the pandemic drastically changed the way members expect to bank. At the height of the pandemic, many branches closed or reduced traffic. Members’ that wouldn’t typically have chosen digital banking opted for it to meet their banking needs. The shift away from branch-based services during the pandemic helped Baby Boomer and Gen X members adopt digital banking when they may not have otherwise.
Even without the impact of the pandemic, the transformation to digital-first processes and products has been underway for some time. This transformation has steadily been shifting the branch’s purpose away from basic transactions to more sophisticated member interactions. The pandemic merely accelerated this shift, and it is becoming vital for credit unions to embrace digital transformation to stay competitive.
Competing For Business
Over the last several years, credit union competition has evolved and expanded. Banks were once the primary competition for credit unions. Now multiple, non-traditional, digital banking options are making it increasingly difficult for credit unions to compete. Some of these branchless competitors include:
- Fintech companies
- Neobanks
- Digital-only financial institutions
- Digital-first lenders and investment firms
- Mobile payment platforms
As competition increases and continues to expand into new markets, there are resources and strategies that credit unions can leverage to maximize member service and profit. Here are 5 growth strategies to help credit unions of all sizes maintain their competitive edge.
Read the full article here.
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