Banking Preferences Based On Digital Infrastructure
FOR >2,000 U.S. CONSUMERS | DATA AS OF 02.02.24
SOURCE: 2024 EY NextWave Consumer Finance Research
In today’s competitive financial landscape, the consumer appeal of comprehensive technological solutions cannot be overstated. Personalized services and digital conveniences are becoming table stakes in the battle to win over members. The right credit union technology allows for seamless online and mobile banking experiences that expand accessibility, improve the member experience, and transform consumer expectations.
Think “OK” technology is sufficient? Think again. In a 2024 study from consulting firm EY, only 12% of consumers reported a preference for credit unions. However, the same study showed credit unions could more than double their market share if they offered a full suite of curated, personalized solutions.
Strategic Insights
- Investment in new technologies makes a difference. Consumers generally report wanting a relationship with smaller, community-focused financial institutions; however, the transactional ease large national banks offer is too appealing to pass up. The rapid rate of change in technology might be difficult to keep up with, but the EY study shows the effort can pay dividends.
- In fact, when EY excluded digital offerings, the percentage of respondents who said they prefer banks over credit unions fell by 29 points to just 19%.
- At Michigan State University FCU ($8.2B, East Lansing, MI), a C-level role oversees both analytics and digital service to drive credit union technology at the Wolverine State cooperative.
