Credit unions are a great resource for those looking to save money on banking services while also making a positive impact on the local community. As we move further into the decade, it’s important to stay up to date on the trends in credit unions that will shape the industry in 2023.
In this article, you’ll learn more about what’s expected in 2023, from how technology is transforming credit union services to how different segments of society are being targeted for membership.
Digital Banking Continues to Top the List of 2023 Credit Union Trends
Digital credit union trends are still going strong in 2023. As things tighten up and many people prepare for a forecasted recession, the need for cost-effective solutions and banking services will only continue to stay relevant.
In 2021, 41% of U.S. retail banking consumers were classified as “digital-only” – and that means making sure your credit union’s online presence is optimized will be the future of a significant portion of your business.
Credit unions have grown, in large part, due to their strategies of reaching out into the less connected regions and communities that big banks were neglecting. And as credit unions are often owned by their members, the statistic above shows us exactly how important it is to start meeting your members in the digital spaces they spend most of their time in today.
Credit union members are looking for digital touchpoints in all of their product and service offerings, from web loan applications to trial balance, online self-service forms, online courtesy pay, and online access to their banking statements.
This also includes customer service discussions and other person-to-person interactions – members are looking for digital-first communication as well. As you are working through
your 2023 goals and strategies, it’s important to take inventory of exactly how much of your services exist in an online or self-service capacity. These will be increasingly appealing to younger members and prospects.
Credit Union Industry Trends and Market Shifts
There are several 2023 credit union trends that stem from market conditions and other related industry expectations and their biggest concerns for this year. Some of those concerns include fraud, labor shortages, and collections. Let’s break these down.
Fraud is a threat that affects every industry and business right now. And since the financial industry is one of the most frequently affected, it’s important that your digital transformation strategy doesn’t invite in more opportunities for fraudsters to get to your members’ account information and finances.
One of the best things you can do to combat fraud attempts is to ensure that two-factor and multi-factor authentication are being used by all members, staff, and vendors your credit union does any work with.
Labor shortages are in effect for different industries in different ways – the unpredictable landscape has created more uncertainty about financial health for people and for businesses in the coming year. If your credit unions are being affected by these shortages, we would recommend reaching out to vendors and other third parties that are offering solutions for the digitization of services and remote work solutions.
These unstable conditions that may or may not contribute to a coming recession will also very likely have an effect on collections of late and other default payments. And since many of your members are already aware of the missed payment, only about 1 in 100 collections calls even gets answered.
Because of this, many CU experts recommend sharing collections notices via email or text, because it lowers the level of engagement for your member and it also saves them the embarrassment they’ll feel when they have to pick up the phone and talk to another staff member at their credit union who also now knows they’re behind on things at the moment.
And digital collections operations will also be crucial as times get tighter since this year is also likely to see continued labor shortages – with an increase in collections instances and decreased staff, your existing employees will be under a lot of stress trying to keep up with the influx.
Relevance is going to be another top entry in the list of 2023 credit union trends to watch. According to Fiserv, between $30 and 80 billion will be transferred from boomers and seniors to the younger Millennial and Gen Z generations in the next few decades.
And that means credit unions should start now if they are hoping to continue to attract younger members as more and more of this money becomes theirs. Right now, between 80 and 90% of these younger generations are currently banking with a major bank, rather than a large credit union or smaller local bank. Big banks have a tight hold on these demographics.
Since the pandemic, credit unions have seen what implementing good technology can do for their operations, and that trend isn’t likely to slow down as these digitally-native generations grow their market share.
This may also mean taking a good look at your credit union’s branch strategy. Transactions should not be the focus of branch staff work, but rather these teams should be trained and optimized to offer sales, service, and advice solutions for branch members.
Reducing the number of physical branches has been a hot topic over the last few years, and transforming operational costs by outsourcing certain storage and services to virtual platforms can create better momentum as we traverse these tumultuous economic times ahead.
Professional Services for your 2023 Credit Union Trends
One of the best ways to keep up with trends without changing your products or services is to lean heavily into your digital transformation.
That’s why IMSI offers professional services that include custom web development, UI scripting, batch scripting, and custom electronic forms. You can take advantage of this digital-first financial services trend that has been growing since 2020 and doesn’t look to slow any time soon.
Reach out to us today and let us know how we can help your credit union use custom digital solutions to create a better experience for your members and your employees.