24% of Credit Union Members Would Switch FIs for Digital Innovations

When consumers are picking a financial institution, digital features make a difference.

In fact, 24% of credit union members would consider switching to new financial institutions over innovation, according to “Credit Union Innovation,” a PYMNTS and PSCU collaboration based on a survey of 4,832 U.S. consumers, 101 credit union decision-makers and 51 FinTech executives.

Get the report: Credit Union Innovation

The other three-quarters of consumers are more loyal, with 28% saying they do not care or would prefer that their financial institutions do not innovate, and 48% saying they would not switch.

While most customers are still sticking with their primary financial institution, the number of these stalwarts has grown smaller since 2018.

An instant card issued to a digital wallet and mobile remote deposit capture are the innovations most likely to convince them to switch. Thirty-nine percent of consumers said an instant card issued to a digital wallet would pull them away from their current financial institution, and 38% said the same of mobile remote deposit capture.

Three other innovations are not far behind in terms of the share of consumers who say these features would lead them to switch. Thirty-six percent of consumers said they would move to another financial institution for digital wallets, 35% said they would do so for peer-to-peer payments and 35% said the same of cardless cash withdrawal.

Much of this shift to digital can be attributed to the world’s change to remote banking amid the pandemic. Branch visits are becoming rarer and digital services that members can access from their own homes are taking their place.

These capabilities are quickly swelling to cover more than the simple withdrawals, deposits and other basic functions that digital banking has traditionally comprised. Consumers can now perform an extensive range of banking functionalities from anywhere.

The financial institutions that offer the most seamless functions are pulling ahead of their competitors.