PSCU Chief Growth Officer Brian Scott argues that “there’s a role for credit unions to play as influencers in financial services and financial wellness in particular. That’s something the credit unions should grasp onto — and own it.”
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GLOIn a recent interview with PYMNTS, PSCU Chief Growth Officer Brian Scott discussed the challenges faced by younger generations when it comes to financial education and saving.
“They just have not had the same amount of time to create a savings ‘pool’ or even to create good financial habits, so they struggle more than other groups during a challenging economic situation,” he said.
Scott highlighted that credit unions are in a favorable position to aid these younger individuals in enhancing their financial well-being.
“Creating programs that are specifically designed for financial education for younger consumers is one area that I think credit unions can really excel at and should be excelling at in this case,” he said.
However, achieving this requires credit unions to effectively engage Generation Z and millennials through their preferred channels, especially the digital ones. The credit unions that manage to do this adeptly, by providing customized and individualized financial wellness programs for these digitally adept consumers, will earn their loyalty. Consequently, a significant number of these individuals are likely to embrace these innovative credit unions as their primary financial services providers.
Data forms the foundation for customizing outreach and educational initiatives. Scott highlighted that financial establishments, particularly with authorized data access, can aid credit unions in acquiring a deeper understanding of how millennials are handling their financial matters. This encompasses insights into their preferences between debit and credit transactions, as well as the shifts in their spending and savings patterns over time.
Areas of Difficulty
Currently, he observed, numerous younger members of credit unions are grappling with credit-related challenges. These challenges primarily revolve around managing and meeting the monthly commitments associated with conventional credit card payments or buy now, pay later (BNPL) schemes. It’s not uncommon for individuals to unintentionally take on multiple BNPL loans simultaneously, only to discover that the weekly or biweekly payment responsibilities are burdensome.
To take a proactive approach and guide consumers on a financially beneficial journey for both themselves and the financial institution (FI), he suggested that credit unions should aim for a continuous state of what he referred to as “perpetual innovation.” Social media platforms like TikTok and Instagram offer valuable avenues to connect with younger demographics.
Furthermore, over time, credit unions can transition these individuals into physical branch settings, especially when it proves to be the most effective mode of engagement. Scott pointed out that certain financial services might not be optimally delivered through an app, and certain interactions could require a personal touch at some stage.
Credit unions possess a significant advantage over other providers when it comes to seamlessly moving from digital channels to in-person branches and strengthening the customer relationship. Compelling and relatable content in the digital realm can serve as a gateway to connecting with an actual representative at the credit union. This representative could then be the same individual clients meet face-to-face at the branch, adding a personal dimension to the relationship, he explained.
“This gets back to people helping people,” said Scott. “You can’t be two different credit unions — one that’s digital and the other in person.”
According to him, ensuring a consistent experience that is maintained across all channels necessitates thorough training of the credit union’s staff, along with an ongoing process of honing that training. Furthermore, credit unions play a prominent part within the community and are characterized by their social awareness. This presents them with a chance to appeal to socially conscious, younger members.
“It’s important that credit unions share what their mission is, as younger consumers are focused on giving back,” he said. “They are making decisions [about doing business] with companies that are socially conscious.”
And against that backdrop, he said, “there’s a role for credit unions to play as influencers in financial services and financial wellness in particular. That’s something the credit unions should grasp onto — and own it.”
Source: PYMNTS
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