ST. PETERSBURG, Fla.—Community roots will help credit unions prosper in 2020, but the movement will have to make some adjustments to the function of branches, according to PSCU.
“In five years, credit unions will be in an even stronger position than they are today,” said PSCU President and CEO Chuck Fagan. “While the number of credit unions may shrink as smaller organizations merge with larger ones, and the number of financial services providers may widen, consumers will continue to be more particular about where they choose to do business.”
Younger consumers, in particular will show favoritism towards businesses that have a strong sense of community, said Fagan.
“Credit unions hold a decided advantage because their community focus is tangible and real,” he said. Credit unions that can capitalize on the vital role they play in the community will win new members and deepen their relationships with existing members.”
Work, however, still needs to be done, said Fagan.
Transforming Branches
Chuck Fagan
“First, credit unions must continue to transform the branch experience to deliver value around members’ life events, such as car purchases, home purchases, wealth management . . .” said Fagan. “Transactional services performed via online and mobile banking channels will continue to be important as they will help keep the credit union connected to its members. But in order to truly stay current, credit unions will need to transform the branch into a place that members go to for counsel and advice as it relates to life events.”
CUs, too, must remain relevant on social and digital channels as technology continues to migrate to the mobile frontier, said Fagan.
“It’s imperative that credit unions constantly innovate within the digital payments space, and partnering with a company that has the resources and scale of PSCU can help them refocus and optimize their strategies,” he explained.
Recession Lessons
Today, Fagan said, CUs should continue the business practices engrained during the recent tough economy.
“Credit unions should continue to maintain the operational efficiencies gained during the economic downturn,” said Fagan. “They must continue to invest in new channels as traditional offerings like basic online banking are no longer enough. To be successful they need to embrace new trends quickly—not bleeding edge in all cases, but leading edge for sure—and deliver the latest and greatest developments to their members.”
Fagan said PSCU’s business model is collaboration and scale, which allows the company to expand into new channels on behalf of its member credit unions.
“For example with the scale we have, PSCU’s risk management expertise and 24/7/365 contact centers enables individual credit unions to go head to head with large national card issuers. By utilizing PSCU’s resources, tools and services, member credit unions are able to focus on engaging members at the branch level,” Fagan said.