Worldwide , credit union systems vary significantly in their total assets and average institution asset size , ranging from volunteer operations with a handful of members to institutions with hundreds of thousands of members and assets worth billions of U . S . dollars . The World Council of Credit Unions reported that membership in the global credit union movement surpassed 411 million members with assets surpassing $ 3.7 trillion in 2023 . By the end of that year , there were 411,008,249 credit union members in 104 countries . 1
In Canada , credit unions grew rapidly during the 1950s and 1960s , primarily driven by the need to use members ’ savings to provide mortgages and short-term loans to other members within the cooperative . This was primarily driven by the demand for lower administrative fees . Many credit unions were located within large manufacturing facilities which allowed for inexpensive premises and convenient service hours for the workers . As times changed and employment for many across Canada has moved away from manufacturing work , the membership base of the credit union has also changed , creating the need to rethink their product and service offerings as well as how to attract new members . 2 One trend in this decade is that larger credit unions are absorbing smaller ones with a desire to offer a broader range of market-leading banking products , services and enhanced digital opportunities .
Updating services and serving younger generations
With the shift away from memberships being formed through affiliations with specific industries , credit unions have needed to become creative with their marketing efforts to attract not only new members but also members from younger generations . While their technology offerings can at times lag behind larger traditional banks , credit unions continue to lead the way with innovative and user-friendly alternatives . These offerings are often driven by direct engagement with their younger members through community partnerships such as education awards , community sporting events and summer employment opportunities through local colleges and universities .
Understanding what younger generations expect from their credit unions is essential , and relying on their ability to foster relationships through a sense of community is what sets credit unions apart from their competitors .
How credit unions are adapting overall
While implementing out-of-the-box solutions can be costly , credit unions have been keen to partner with fast-growing fintech platforms . These collaborations produce leading-edge developments that provide seamless omnichannel solutions to their members . Online onboarding and the implementation of passwordless user journeys , which include the use of behavioral biometrics , has created an enhanced member experience by removing the frustration that often comes with passwords while at the same time reducing one-time password costs .
Ongoing in-person touchpoints also help keep a pulse on what members are thinking and feeling about their financial wellness . Community engagement and partnerships are key avenues that allow for building rapport outside of the traditional walls of the credit union . Through these engagements , committed partnerships are formed , solidifying to the members that their financial well-being matters and that their voices will be heard .
Credit unions continue to steer away from a one-size-fits-all approach to their financial services offerings . Staff are trained to keep their members ’ financial well-being top of mind , while offering custom solutions that will fit or enhance the member ’ s current financial position . Financial literacy is always a key component of the member ’ s journey with credit unions , and products and services are offered with a “ needs-based ” approach . The profit of the credit union is never at the forefront . As all of the members are owners , every solution offered is done with the credit union ’ s values in mind because the financial success of the membership ultimately reflects the credit union ’ s overall profitability .
Competing priorities will continue to be the main challenge facing credit unions , which is why having a formal strategy around new and original offerings is key . Pioneering product and technological offerings will be paramount to setting credit unions apart from traditional banks and capturing the market share of younger generations .
PAT machines and member solutions teams
Some of the solutions that have been leading the way for credit unions to connect with their younger demographic are reworks of known solutions . One of those offerings comes in the form of an ATM with a twist . The personal assisted teller ( PAT ) machine has the same functionality as a traditional ATM but also handles coins , offers a digital signature pad and provides a live video interface so members can interact with a real teller while they do their banking . These machines allow for self-service banking while adding the personal touch of in-branch services if and when needed . The PAT also extends the hours typically offered for in-branch services .
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