Credit Unions Need Millennials for Sustainability,
Viability
Virtual lending to millennials will be critical to the
future success and sustainability of credit unions, but it’s important to be
cognizant of the growing risks posed by expanding online channels and take
steps to mitigate them. That's what Jim Bullard
told a Discovery Conference audience today.
Bullard is a senior consultant in Risk and Compliance Solutions for our company. In his Discovery session today, he said that all
aspects of the consumer lending process – application, approval and funding –
are moving quickly toward reliance on a virtual technology environment due to
consumer demand for convenience.
Three in five U.S. consumers perform banking
activities using their mobile phone or tablet, up from nearly half who did so
in 2013, and one-third who did so in 2012, according to Mercator Advisory Group.1 And, mobile lending is increasing across all generations, but it’s no
secret tech-savvy millennials, ages 19 to 35, are becoming the most
sought-after demographic in several generations, Bullard said.
“Successful lending to millennials in a virtual world requires your
credit union to provide a seamless, end-to-end experience. The challenge is to
create enough friction during the process to adequately authenticate your
applicant, but not so much that causes the prospective member to end the
session and look for a lending solution at one of your competitors.”
Click here to read the full recap of Bullard's session in today's press release.
Sources:
1
– Mercator Advisory Group, April 13, 2015, https://www.mercatoradvisorygroup.com/Reports/Mobile-and-Tablet-Banking--P2P-Is-Driving-Growth/
-->
