Credit union operations are continuallyevolving. Twenty years ago we helped members balance theircheckbook registers as they sat across the desk from us; today weprovide them with mobile apps that deliver real-time informationand account warnings to their mobile devices. We are at acritical and important juncture as credit unions determine how theywill best serve their members in the future.

In the United States, there are two groups of people who willshape our future economy, and they have very differentneeds. According to the U.S. Census Bureau, there are 92 millionmillennials about to enter their prime spending years and 77million baby boomers who are moving into retirement. Asfinancial institutions designed to serve our members’ needs throughthe “people helping people” philosophy, how can credit unionoperations bridge the gap between these diverse member groups?

Millennials grew up in a time of advanced technology, instantinformation and rapid change. They expect cutting edgetechnological services that provide convenience, flexibility andspeed. With 62% of millennials connecting to the internet whenaway from home or work, they are adept at communicating usingsocial media sources. Brick and mortar branch experiences areevolving to provide virtual tellers to meet this generation’sbanking needs; however, virtual branch experiences are a far cryfrom the Internet-only connection these younger members enjoy.

It is easy for us to serve the needs of baby boomers, because“we” are baby boomers. However, with more than 10,000 boomersretiring every day over the next 20 years, their financial needsare going to change significantly. Baby boomers value personalinteractions and expect the member service that has traditionallybeen provided by credit unions.

Interestingly, there are two things that millennials and mostbaby boomers have in common: Both want convenience, and neither hasplanned well for retirement.

The frightening fact about our aging population is that almosthalf have not saved for their retirement and, according to a recentsurvey by the American Association of Retired Persons, 40% plan towork “until they drop.” The challenges of the economicrecession adversely affected both boomers and millennials in asimilar way. The retiring population stopped saving and thevolatility of the market has discouraged millennials fromparticipating in and investing fully in retirement plans.

Credit unions must examine the ever-changing needs of membersand evaluate how to best provide service to all members, takinginto consideration the limitations and opportunities that providingfinancial services in the future entails. We will need to deliverpersonal service through online interactions, offering the benefitsof social media formats that are so prevalent in oursociety. From an operational standpoint, moving toward futureonline channels for financial services can provide cost savings –which benefits both the credit union and its member-owners.

As an industry, we are uniquely poised to assist and educate ourmembers about financial decisions and planning for thefuture. Due to our not-for-profit structure, we can truly workwith members to assess their past financial decisions and properlyassist them to plan for their futures, without taking advantage oftheir situation and placing them in greater financialjeopardy.

The credit union advantage in the financial landscape of thefuture is that in the next few years, we will begin to see theneeds of our members change dramatically, and we must be preparedto help different generations manage their financial challenges andopportunities. As credit union operations evolve to meet ourmembers’ needs, we will actively shape the future of financialservices and protect the financial security of our members.

Shawn Wolbert, CIA, CUERME, CUCE, is senior vice presidentof lending and operations/chief financial officer for the MichiganCredit Union League & Affiliates. She can be reached at800-262-6285 ext. 420 or [email protected].