Access Softek, Inc., an omnichannel digital banking platform provider, surveyed more than 500 credit union members that have adult children in order to expand upon and further understand the results of its previous survey. These new findings present additional areas of opportunity for credit unions to create a strategic difference, especially among families.
The new survey, conducted by Google Surveys between July 9, 2020 and July 13, 2020, found that 42% of respondents had no idea where their adult children chose to bank. When asked why a majority of adult children chose not to bank at their parents’ credit union, most respondents – 55% – cited moving away as the reason why they chose to bank at a different institution. Additionally, nearly 28% cited there was no reason for their children to bank at the same institution as them.
This highlights a unique opportunity to improve digital offerings in order to better serve remote members. If location is the biggest issue, making the credit union’s services – everything from account opening, to lending, to investing – available digitally is key to keep serving families across generations.
When asked if they would like their children to have an account at the same credit union as them, nearly 90% of respondents were either neutral or to some degree actively wanted separation from their children’s financial institution. Shockingly, 38.2% of respondents stated that they do not want their kids to have an account at the same credit union as them. It will be a challenge on the part of credit unions to turn the tide on this neutrality, especially those that lean toward the negative side.
“The fact that 90% of parents do not care or do not want their children to have accounts at their credit union shows a lack of familial affinity toward the FI. There needs to be a more open dialogue about finance in the family, even when children have grown up. Credit unions must have a “friends and family” set of features in their digital offering to maintain the family connections throughout their membership,” said Chris Doner, founder and CEO of Access Softek. “Credit unions must begin treating the family as one financial unit and looking at family wallet share. Currently, there are little-to-no programs or incentives for families that bank together. This is a huge opportunity that many institutions are missing out on.”
Doner added that digital will be key in changing the attitudes of current and future credit union families. In addition to having a more open dialogue about finances in the family, credit unions must incentivize credit union loyalty among the family. What the incentives are will depend on the credit union’s unique membership and what is important to them. Regardless, the credit union must be involved in these conversations with education, incentives, or products tailored specifically to children and college students in the family.
“If credit unions are unable to keep families together in the credit union, the impending generational wealth transfer will be potentially devastating,” continued Doner. “By keeping families in the credit union, they are keeping wealth within the institution for generations to come.”
About Access Softek, Inc.
Access Softek sets the standard for the omnichannel digital banking landscape, having developed the first downloadable apps for mobile banking. Since that time, Access Softek has extended its track record of innovation to online banking, biometric authentication, real-time fraud prevention, and automated investing integrated directly into a financial institution’s digital banking platform, among many other innovative products. Since 2004, Access Softek has delivered industry firsts to over 400 bank and credit union customers from its Berkeley, California headquarters. Learn more at AccessSoftek.com.