Article written by:
Zach Bollinger, CPA
Credit Unions have a demographic problem and it’s not getting better. Per a 2015 CUNA Survey, the average credit union membership age was 48.5, with just 7% of members falling in the 18-24 age group. With Credit Unions always looking for new ways to attract and retain younger members, could the answer be Venmo, a digital wallet that lets you make and share payments with your friends using your mobile phone? Venmo has been around since 2009 and established itself as a trusted payment service among younger users. You might recognize Venmo’s parent company Paypal, a spinoff from Ebay. Paypal initially created Venmo because it saw an opportunity to win over mobile users by making it easier to send payments to friends and family. Since then, Venmo has become the second most utilized finance app on Apple iTunes and became popular among the younger and technology proficient age groups.
A recent online survey conducted by The Harris Poll shows that Credit Unions may have an opportunity to win over mobile users who use payment sharing apps like Venmo. Of the 1,928 survey participants who owned mobile devices, only 33% used mobile payment apps on a weekly basis. Compare that to 59% of participants who said they used banking apps at least once a week. Furthermore, 68% wished they could do their banking and send payments all through just one app. This desire for one application provides Credit Unions with an opportunity to capitalize on the established relationship that payment sharing apps, like Venmo, already have with their customers. Looking at mobile opportunities may be a steep investment for some, but can Credit Unions afford to miss this chance to capture a new generation of business?
It’s new ideas like this that empower Credit Unions to better serve their members. At GBQ, we are always looking for ways to empower our clients and assist them in their growth. Reach out to a member of your Credit Union team and let’s brainstorm about some ideas today.