by Darren Smith, ATM USA Powered by PAI
Originally published by CUInsight
As we approach 2025, banks and credit unions inevitably face new challenges and opportunities in serving their account holders and growing their institutions. By understanding emerging trends and consumer preferences, financial institutions can position themselves for success in the coming year.
Here are four key predictions that could shape the financial landscape in 2025.
Community Involvement Will Drive Account Holder Growth
Community engagement is becoming increasingly crucial for banks and credit unions looking to attract new account holders, particularly younger generations. Recent studies show 78% of Millennials actively recommend companies based on their societal involvement. This statistic highlights the growing importance of community-focused banking solutions.
Generation Z and Millennials also demonstrate a strong commitment to volunteering, with 54% of Gen Z and 41% of Millennials regularly participating in community service activities. Credit unions and community banks that align their values with these community-minded generations can build stronger connections with consumers.
To leverage this trend, credit unions and community banks should:
Develop robust community outreach programs
Partner with local non-profit organizations
Create volunteer opportunities for staff and account holders
Highlight their community impact in marketing materials
A La Carte Pricing Models Will Become Standard
The future of financial services lies in flexible, customizable pricing structures. Consumers increasingly expect to only pay for the services they use, rather than bundled packages that may include unwanted features.
A la carte pricing offers several advantages:
Consumers can customize their banking experience
Greater transparency in fee structures
Improved cost control for consumers
Enhanced competitiveness in the financial services market
Gen Z Will Emerge as a Key Growth Segment
Credit unions should pay particular attention to Gen Z, as this demographic shows a stronger inclination toward credit union membership compared to Millennials. Studies indicate that Gen Z's preference for credit unions ranges from 4% to 26%, while Millennials' preference falls between 5% and 14%.
To effectively target Gen Z, financial institutions should focus on:
Advance self-service solutions that offer personalized service
Educational content about financial wellness
Social media engagement and mobile banking innovations
Personalization and Self-Service Will Define Account Holder Experience
The future of success lies in delivering personalized experiences while empowering account holders with self-service options. This dual approach meets expectations for both customization and convenience.
Key elements of this strategy include:
Advanced data analytics to understand consumer behavior
Interactive Teller Machines (ITMs) and ATMs with enhanced capabilities
Virtual branch solutions and 24/7 access to representatives
Customized landing pages and digital experiences
Credit unions and banks that invest in these technologies can provide account holders with the flexibility to bank when and where they prefer while maintaining a personal connection through virtual channels.
Looking Ahead
As financial institutions prepare for 2025, focusing on these key areas will be crucial for growth and account holder satisfaction. Success will require banks and credit unions to balance traditional values with innovative solutions, ensuring they remain competitive while maintaining the personal touch that sets them apart. By embracing enhancing personalization and self-service options, credit unions and banks can position themselves as forward-thinking financial institutions that meet the evolving needs of their account holders and drive sustainable growth in the years ahead.
Let us help you succeed in 2025 and beyond with innovative self-service and virtual banking solutions. Discover how partnering with ATM USA, powered by PAI, can benefit your financial institution.
Darren Smith, Vice President, ATM Management
darren@atmusa.com • 919-534-3232 • Schedule a Meeting
Craig Helmers, Vice President, ATM Management
craig@atmusa.com | 919-534-3233 | Schedule a Meeting
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