Caution: Customers Don't Always Ask for What They Want

  • Share:
technology

Caution: Customers Don't Always Ask for What They Want

Credit unions and other smaller brick-and-mortar financial institutions have historically lagged behind on mobile tech—money is often more easily spent on traditional services than on functions customers aren’t asking for. It’s easy to overlook customers’ desires to start the loan application process through a mobile app when they are still coming in the door to begin the process. But how many customers are looking for the option to start their loan online or manage their budget through an app but aren’t asking?

Leverage mobile apps

People are looking for an end-to-end digital loan process, and mobile devices are an important element, especially when comparing products and calculating payments. A study by PricewaterhouseCoopers (PwC) found that the majority of millennials, Gen Xers and baby boomers prefer to start each step of the loan process online, such as researching a loan, filling out an application, signing documents and submitting it all. Only those aged 73–83 still prefer to apply for a loan via traditional methods.

This means that while a broad solution is still desired to capture the entire spectrum, lenders targeting a younger generation must focus on digital avenues, at the forefront of which are mobile apps. However, younger consumers also demand a gamut of functionality from their financial mobile apps, such as the ability to calculate loan amounts they can afford, check on the status of their application or compare different loans. Millennials, in particular, desire a variety of tools, especially in mobile wallets, or their attention will shift elsewhere. Very few apps on the marketplace currently meet all expectations.

Financial advice, on demand

One factor that is working in the favor of traditional financial institutions is the issue of trust. Generally speaking, banks still enjoy a very good reputation with their customers, and credit unions even more so. This is even true with millennials. Although they’re not afraid to try out non-traditional providers, they have retained a trust of financial institutions.

Millennials generally value digital, do-it-yourself financial advice over the traditional personal advisor. Telestra Global found that 67 percent of millennials prefer to receive financial advice on a digital platform. The study says this is due to a perception that self-serve platforms offer greater flexibility, independence and a faster response. This can translate to a big opportunity for credit unions currently investigating voice technology, as many millennials would rather receive financial advice from a voiced chatbot (think Siri) than from a finance professional.

Overall, consumers prefer lenders or financial services that offer advice, either through self-service channels or with a human consultant.

Give them tools

Financial management tools add value and increase consumer affinity with brands. Simple tools such as calculators, budget trackers and payment reminders can go a long way in keeping an app in use. Some features appeal to all generations, such as the ability to calculate loan amounts that the borrower can afford, or the ability to comparing products and loan rates, possibly even with a competitor.

With younger consumers who veer more toward self-service functionality as opposed to high-touch services (such as financial advisers), it’s important to keep tools easy to use. This group looks to technology to simplify and reduce the day-to-day management of their personal funds. This explains the rise of budgeting apps such as Mint, which give millennials a quick and easy way to manage their finances right on their mobile device.

Other mobile budgeting tools like YNAB (You Need a Budget) resonate with millennials because of their ease of use and the ability to bypass the spreadsheet and view info at a glance. The wide variety of tools available on a single app means that millennials will continue to use the app beyond just simple budgeting. Additionally, apps like YNAB gamify personal finance and users feel accomplished when reaching certain financial milestones, such as paying off a loan, lowering monthly expenses or saving up rainy day funds. It’s addictive and keeps the app in use.

To stay relevant and competitive in a mobile world, credit unions, no matter the size, need to offer simple, yet comprehensive, mobile apps to their members. They’re looking for one-stop solutions for their financial needs; if they’re going to check the balance of their account, they should be able to see their weekly budget and the status of a loan application as well. They want these capabilities—even if they haven’t asked for them.

  • Share:


« Return to "Trends"
TrendScan logo
<< Back to Articles

Latest Trends

  1. Identifying Marijuana-Related Businesses
  2. Cut Through the Noise and Deliver Value Members Want
  3. 3 Key Factors for Creating Good Content
  4. A Content Management System Will Make Your Life Easier
  5. Preparing a Transparency Communication Plan
  6. Credit Unions Could Replace Predatory Lenders
  7. Enterprise Risk Management — Where to Start
  8. Why You Need ERM in Your Strategic Planning
  9. Just How Distracted Are Consumers?
  10. Are You Properly Rewarding Your CEO?
  11. The Quickest Way to Understand Enterprise Risk Management (ERM)
  12. What Borrowers Wished Credit Unions Knew
  13. The Easiest Way to Deliver Content for Employee Development
  14. Opportunities and Risks of Banking for Marijuana-Related Businesses
  15. Experience Company Growth and Discovery with Employee-Driven Communication
  16. 5 Things Credit Unions Can Learn from Cyber Attacks
  17. Should You Still Be Concerned about ADA Website Compliance?
  18. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  19. Become a Tax Resource for Members
  20. The Member Service Experience
  21. Are You Ready to Adopt a Continuous Performance Management System?
  22. Don't Get Snagged on ADA Compliance Requirements
  23. Consumer Attitudes Toward Digital Advertising
  24. Building a Website with the User in Mind
  25. Learning Management Systems: What Credit Unions Should Consider
  26. The Role of HR and Hiring Managers in the Candidate Experience
  27. The Quest for a One-Stop Shop Financial App
  28. The Planning Process - Improved
  29. Anticipating Change with a Succession Plan
  30. How Useful Are Member Personas for Credit Union Marketing Teams?
  31. The Performance Management Conundrum: Structure vs. Creativity
  32. Americans' Lack of Financial Literacy Is an Opportunity for Credit Unions
  33. Volunteer and Young Board Members Need Development
  34. 2 Big FinTech Goals for Credit Unions
  35. Popular DDoS Mitigation Methods in 2019
  36. Credit Union Compensation: Philosophy or Strategy?
  37. 7 Tax Changes Your Members Need to Know About
  38. 3 Website Design Trends for 2019
  39. What's Hot in Performance Management Technology
  40. Is Your Executive Compensation Still Appealing?
  41. Preparing for Compensation Transparency
  42. Content Marketing: Well Worth the Effort
  43. Your Social Media Accounts Deserve Quality Content
  44. Continuous Performance Management is Disrupting HR
  45. What Credit Unions Should Do with Ambiguous ADA Standards
  46. 3 Succession Plans Your Credit Union Needs
  47. Consumer Appetites in Mobile Innovation
  48. Do You Know Why Payday Loans Are Used so Much?
  49. Why You Should Invest in an Applicant Tracking System
  50. Omnichannel Delivery: Banking Based On Members
  51. Shifts and Trends to Know About in E-Learning
  52. The Website Audit Your Credit Union Needs
  53. Why HR Should Take Advantage of Employee Self Service
  54. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  55. Build Up Membership Through Supportive Savings Programs
  56. The Importance of Creating Quality Content
  57. Selling Payments and Wealth Management Services
  58. Is Your Credit Union Supported by the Four Pillars of Digital Banking?
  59. Optimizing Websites for Voice: What You Need to Know
  60. Bankers associations’ opposition to mergers does a disservice to member banks and to consumers
  61. Content, Tools, and Channels to Capture Consumer Attention
  62. People Analytics: Bringing HR and Data Together
  63. The Win-Win Results of Prize-Linked Savings for Credit Unions and Members
  64. Credit Unions Have an Opportunity to Help Their Members Through Tax Season
  65. Wanted: Apps for Clarification and Simplification
  66. Prioritizing the Credit Union Employee Experience
  67. 5 Guideposts to Measure Your Brand Promise Against
  68. The Quickest Way to Find the Right (and Safest) CMS
  69. The Best Compliance Training with New Topics You Will Need
  70. 6 Factors for Choosing the Right ESS System
  71. The Credit Union Advantage for the Digital Customer
  72. A Simple Way to Unify Your Marketing Efforts
  73. Is Your CMS the Right Fit?
  74. Americans Trust Their Financial Institutions for Tax Advice
  75. How to Identify What You Want in an ESS
  76. Are You Missing Out on the Power of Video?
  77. Keeping Up with Digital Lending Convenience
  78. Are Your Landing Pages up to Snuff?
  79. How Credit Unions Can Formalize the Branding Process
  80. 4 Steps to Increased Social Media ROI
  81. The Dream Team for Successful Online Customer Interactions
  82. Making Sure You Have the Right Leaders in the Right Seats
  83. Caution: Customers Don't Always Ask for What They Want
  84. What the C-Suite Wants out of Social Media
  85. Empowering Employees and HR with the Latest Technology
  86. Credit Unions Can Compete with Shadow Banks
  87. Serving the Underbanked and Millennials
  88. Don't Undervalue Your Brand Promise
  89. How to Generate Content with Fewer Resources
  90. Don't Underestimate the Power of Financial Education
  91. If Your Site Isn't Mobile Optimized, You're Losing Out
  92. 3 Factors Impacting Credit Union Compensation Plans
  93. How Credit Unions Can Embrace Storytelling in Marketing
  94. Protect Your Credit Union with a Website Accessibility Response Plan
  95. Underestimate the Onboarding Process at Your Peril
  96. Remaining a Player in the New Home-Buying Experience
  97. Leveraging Social Media for Member Engagement
  98. 3 Brand Promises Credit Unions Can Learn From
  99. You Know You Need an LMS — Now What?
  100. Achieving the Golden “Narrative Transport” in Brand Storytelling
  101. Finding the Best Platform for HR Technology
  102. Predict the Future of Mortgage Lending with Analytics
  103. The Process of Crafting a Relatable, Moving Brand Story
  104. You Might Already Have the Solution to Your Current Talent Competency Gap
  105. The Secret to Future-Proofing Your Organization
  106. Leverage the Resources of Trusted Experts for Tax Season 2019
  107. Three Ways to Enhance Compensation Strategy for an Age-diverse Workforce
  108. Common Mistakes in Compliance
  109. Identify how chatbots will help you
  110. Keep content relevant, short, iterative and engaging
  111. Do you need a new compensation strategy for multigenerational staff?
  112. Conversational Commerce and the Rise of the Chatbot
  113. Prepare for integration
  114. Three ways to up your social media game
  115. What others are doing

Related Trends

  1. Conversational Commerce and the Rise of the Chatbot
  2. Identify how chatbots will help you
  3. Prepare for integration
  4. Remaining a Player in the New Home-Buying Experience
  5. Predict the Future of Mortgage Lending with Analytics
  6. Is Your Credit Union Supported by the Four Pillars of Digital Banking?
  7. Omnichannel Delivery: Banking Based On Members
  8. The Quickest Way to Find the Right (and Safest) CMS
  9. A Content Management System Will Make Your Life Easier
  10. Credit Unions Could Replace Predatory Lenders
  11. 5 Things Credit Unions Can Learn from Cyber Attacks
  12. Do You Know Why Payday Loans Are Used so Much?
  13. What Borrowers Wished Credit Unions Knew
  14. Serving the Underbanked and Millennials
  15. Should You Still Be Concerned about ADA Website Compliance?
  16. Don't Get Snagged on ADA Compliance Requirements
  17. Consumer Appetites in Mobile Innovation
  18. The Quest for a One-Stop Shop Financial App
  19. Wanted: Apps for Clarification and Simplification
  20. What Credit Unions Should Do with Ambiguous ADA Standards
  21. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  22. Building a Website with the User in Mind
  23. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  24. 3 Website Design Trends for 2019
  25. The Credit Union Advantage for the Digital Customer
  26. Optimizing Websites for Voice: What You Need to Know
  27. Is Your CMS the Right Fit?
  28. 2 Big FinTech Goals for Credit Unions
  29. Caution: Customers Don't Always Ask for What They Want
  30. The Website Audit Your Credit Union Needs
  31. Keeping Up with Digital Lending Convenience
  32. Protect Your Credit Union with a Website Accessibility Response Plan
  33. Credit Unions Can Compete with Shadow Banks
  34. Popular DDoS Mitigation Methods in 2019

Industry insights
to your inbox!

Subscribe