Catering to digital natives: Bridging the gap between branches and digital channels

In today’s rapidly evolving financial landscape, consumers’ interaction with their primary financial institution is undergoing a dramatic change as consumers shift from banking in branches to conducting transactions digitally. This is particularly true for the youngest American consumers who look for digital-first experiences in all areas of their lives.

Given the importance of digital banking today, credit unions that prioritize their online and mobile experience have an opportunity to gain a greater share of the sought-after Gen Z and millennial segment. New research conducted by The Harris Poll provides insights into how best to appeal to these consumers.

The branch paradox

A majority of Americans still prefer their financial institution to have physical branches, according to The Harris Poll. However, the importance of these branches is decreasing among younger consumers. While 65% of Gen X and 76% of boomers believe branches are essential, only 57% of Gen Z and 60% of millennials share this view. Furthermore, 45% of Gen Z and millennials can’t recall the last time they visited a branch.

This physical location paradox has clear implications for traditional credit unions. While branches remain important, their value relative to digital channels is likely to decline as digital natives represent a greater share of the population. To serve this segment, your credit union must find ways to deliver the same exceptional support and service through digital channels that you currently provide in the branch.

 

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