Although we rightly invest a great deal of time thinking and reading about new technology, the real upshot is usage. How are members actually using (or not using) your technology, apps and services – and how might we cultivate greater usage going forward?
Understanding technology usage can be tricky. For example, Mary Meeker’s annual Internet Trends Report for 2018 finds that smartphone growth has stalled. Bad news? Hardly. Penetration hovers just below 90 percent! Smartphone usage isn’t stagnant; it has reached peak levels. Similarly, computer internet usage is down, while mobile internet usage is up: another indicator that if your credit union isn’t already minding its mobile experience, this is the moment to focus in.
That’s doubly true if you’re looking to build relationships with Generation Z. A whopping 73 percent of 16- to 18-year-olds surveyed by Raddon check their smartphones at least once an hour. Although Gen Z teens varied in their banking preferences, 31 percent agreed that they wouldn’t be limited to conventional banking choices as adults.
Here are five different takes on how consumers use – and want to use – financial services:
Four Companies Driving the Banking Tech Discussion
Innovation in banking and payments technology is happening beyond financial services. Just look at SASA – Starbucks, Amazon, Sears and Acorns – four companies racing to win the payments usage game in their respective verticals. For example, it is estimated that 23 million consumers (just over half of all smartphone users) use the Starbucks app to make a purchase at least once every six months. Within the first two days of offering debit cards, the investing app Acorns saw over 50,000 applications flood in.
Gen Z through the Mobile Payments Lens
Two-thirds of the 2,500 16- to 18-year olds surveyed in a Raddon study already have bank or credit union accounts. And when it comes to how they use those accounts, although 34 percent prefer face-to-face transactions, a full 28 percent are “pioneers” who will bank with any provider that offers the most convenience.
Top Takeaways from the 2018 Internet Trends Report
Mary Meeker’s annual Internet Trends Report delivers 294 pages of fascinating insights about how consumers are using technology. Among the most compelling for credit union strategists: 60 percent of all payments in 2017 were done digitally. Smartphone growth has stalled while usage has increased. Mobile internet usage is up, while computer internet usage has declined. And consumers are conflicted about privacy.
Business Owners Use Personal Credit Cards for Funds
Who are some of the most active users of credit cards? According to a study by Nav, small-business owners are a motivated group worth investigating. Not only do they carry more cards than the average user, but they’re also likely to use their personal credit cards to pay for business expenses.
What Percentage of ATM Users Had No Checks to Deposit?
Check use is declining – so much so that a significant percentage of ATM users had no checks to deposit within the past 12 months. Can you guess the percentage? It’s revealed in this “Truth in Data” post.
And to learn more about how digital transformation can help your credit union drive usage and member growth, download the free CO-OP white paper: