Credit Unions Can Marry the Digital and the Physical

Credit Unions Can Marry the Digital and the Physical

The unprecedented convenience and speed of mobile banking have had a profound impact on the way customers conduct their banking. A survey from the American Bankers Association found that more than half of U.S. consumers conduct their banking via mobile apps more often than any other method.

However, despite the enormous popularity of mobile and online banking, consumers haven’t completely abandoned in-person experiences. According to a 2024 EPAM global consumer banking report, 86% of those surveyed said they used a physical branch in the last year, and 45% reported doing so at least monthly. These findings indicate that the future of banking is a combination of the physical and digital, something many experts call “phygital.”

What is Phygital?

Consumers expect to engage when, where and how they want, whether physically or digitally. Small banks and credit unions can gain a significant competitive advantage by marrying these worlds together. Phygital products and experiences remove friction, which, in turn, increases customer satisfaction for greater trust and stickiness. While credit unions or small banks may never have a total wallet share of their customers or members, by optimizing the customer experience, they can certainly become top-of-wallet.

Nevertheless, delivering phygital products and experiences is challenging. It will require credit unions to understand which member needs are met digitally versus physically. As the research above indicates, consumers prefer to handle inquiries and transactions digitally, whereas they tend to favor physical channels for advisory, guidance and problem-solving. To converge these, credit unions must curate better experiences and products that eliminate friction across both worlds.

Read the full article here.

Learn how EPAM helps financial services companies keep pace with emerging technologies, rising customer expectations and ever-changing regulations: https://www.epam.com/industries/financial-services