Credit unions are at risk of losing relevance among younger demographics if they do not sufficiently evolve their digital services, new research shows.
The research was carried out by Amárach and was commissioned by Metamo, a joint venture between 16 of the country's biggest credit unions and Kerry-based financial services company Fexco.
Today's research found that compared to other age groups, those in the 18-24 demographic are more likely never to have been a member credit union, are more likely to say they know little about credit unions and are less likely to say credit unions have the potential to meet their financial needs.
It also revealed that young people are more likely to say that technology is important in managing their lives and are more likely to use products from newer financial services organisations including Revolut.
Metamo said the survey's findings show that credit unions remain very important and popular financial institutions, with 47% of respondents saying they were active credit union members.
Credit unions were also deemed to provide better value for money on loans, when compared to other financial institutions, it added.
But the research also showed that credit unions had the lowest rate of digital engagement.
32% of active credit union members said they never used their credit union app, despite the fact that 58% of all respondents said mobile phone apps were their preferred method of managing their day-to-day financials, with 54% saying the same for savings.
Denis Cleary, CEO of Metamo said it was positive to see that Credit Union membership figures remain high, but added that this figure is much lower among the younger demographics, with just one in four people between the ages of 18 and 24 considering themselves an active member.
"The research shows that there is still a perception among this cohort that Credit Unions are a traditional institution, with a limited product range, which is no longer the case," Mr Cleary noted.
"While the sector has developed significantly in recent years, there is still a gap to bridge when it comes to reaching young people, particularly on the digital front. There is a clear opportunity for credit unions to expand their role as a financial institution, and we hope these new consumer insights will help the sector to develop a roadmap for further expansion, particularly when it comes to digital offerings," he added.
Alan Roche, CEO of Heritage Credit Union, said that credit unions are vital for the well-being of Irish people today.
"We want to build on this role and make it stronger in the future. The research tells us how to do that: by staying relevant, by deepening our relationships with our current and future members, and by expanding and improving our services and impact on Irish society," he added.
