Credit unions (CUs) shook off a dusty reputation to become leaders in the digital shift, and for good reason: CU members see the digital delights enjoyed by account holders at other financial institutions and will switch if CUs don’t offer the connected experiences prized by consumers.
For Credit Union Innovation: The Race To Meet Consumer Demand, a PYMNTS and PSCU collaboration, we surveyed nearly 6,490 U.S. financial institution (FI) account holders, including close to 2,100 CU members and over 4,400 customers of other FIs to discern the state of CU innovation now.
As the report states, “a record 29% of FI account holders would switch to an FI with more innovative products and services. The previous high-water mark for account holders willing to switch for more innovation was 26% in 2019 and 2020,” adding that “50% report they want innovative products and services” but would prefer not to switch if their CU provides them.
Get the report: Credit Union Innovation: The Race To Meet Consumer Demand
Even as CUs up their digital game, new product launches fell for the first time since 2018 as some CUs back off these investments while others work to perfect products already in service.
“Early launchers are more likely than other CUs to innovate mobile banking, real-time payments and personal loan offerings,” according to the report.
“The other classes of CUs consist of quick followers, followers and laggers. More CUs are innovating by adding features to existing products instead of launching new products — this share rose six percentage points to 39% from 33% in 2021,” per the latest findings.
“The proportion of CUs that split their innovation efforts equally between enhancements to existing products and the launch of new ones fell for the second consecutive year to 37%. Just 18% of CUs are focusing solely on innovating new products and services.”
The new data shows that 2022 is bad timing for CUs to pull back on tech innovations in payments capabilities, mobile, real-time payments and other areas coveted by consumers.
Per the report, “More than 60% of CU members and account holders at other FIs have expressed interest in more payment capabilities, including real-time payments, cardless cash withdrawal and contactless payments, in each of the past three years, outpacing the other product categories surveyed. No other category has polled above 53% since 2020.”
See it now: Credit Union Innovation: The Race To Meet Consumer Demand
