Essay Sample about The Credit Union Movement
Financial stability and freedom are goals for some and have become unattainable for others; more so, the common man who is straddling the poverty line and a stone's throw away from destitution. Fortunately, due to the existence of Credit Unions, members are given a fair chance at achieving their financial goals and reaping economic benefits, all while being a part of a large community made up of other members just like them. These financial institutions strive to provide their membership with an array of financial products and services at fair and competitive rates, all in an attempt to assist in creating economic sustainability, thereby improving lives. The Credit Union Movement has played an integral role in promoting financial inclusion globally, via a plethora of key approaches. It is through this movement that many persons from different walks of life and income levels have been able to achieve some semblance of self-sustainability.
Technology has revolutionized the Credit Union Movement by enabling these financial institutions to have a competitive edge in today’s digital world. Through the digitization of the products and services offered to members, Credit Unions have increased accessibility and thus, member satisfaction. The utilization of computer software ensures that members’ information is well managed and organized, easily accessible, and transactions can be conducted promptly. Services such as Automated Teller Machines, online, and mobile banking provide instantaneous transactions for members whenever and wherever, which is especially convenient for those who are on the go. With the rise of various social media platforms, Credit Unions are now able to connect with members and non-members alike. Technology also leads to membership proliferation, as it makes it more convenient for persons to become members by accessing the necessary information and resources, such as electronic application forms online.
Millennials can be reached if the right marketing strategies and tactics are employed by the Credit Union Movement. Research has shown that the average age of credit union members is mid-to-late 40s. However, the millennial generation has become the largest living adult generation, according to population estimates. With that being said, the Credit Union Movement would be doing itself a great disservice not to reach out to this demographic, which would ultimately lead to the survival and success of Credit Unions in the future. Millennials spend most of their day engaged in some form of media, so Credit Unions can use the various sources of media to their advantage. Technology is undoubtedly the best tool to utilize when trying to connect with millennials, as most millennials are logged on in some way or another.
Credit Unions can market their products and services via social media platforms through eye-catching and attention-grabbing techniques, to encourage user engagement and interaction. They can also host promotions and competitions with prizes geared towards only millennials, to sway them into wanting to gain membership. Credit Unions need to connect with millennials in a relatable way to stay relevant. They need to find ways to tap into topics and issues or causes that millennials are interested in and care about, to lure in and maintain this population segment. This is crucial to the future success of the Movement.
Due to their nature, Credit Unions are at a disadvantage when compared to financial institutions such as banks. This should not be a deterrent, however, as the Movement can remain competitive in the financial industry with a few adjustments and adaptations. One of the pros of Credit Unions is that they offer significantly lower interest rates on loans and higher rates on savings products in comparison to banks, which is beneficial to members from lower economic backgrounds. To keep up with their counterparts, Credit Unions should consider increasing the number of products and services being offered, particularly in the commercial banking scene. They can offer products such as business accounts, commercial loans, business credit cards, and foreign currency exchange, to name a few. They can also broaden the scope of investment products that are currently being offered. Together with the Money Market fund, the Movement can also consider stocks, bonds, and life annuities as lucrative additions that will benefit the mutualistic relationship between Credit Unions and their membership in the long haul.
