Every day at Finopotamus, we write about things like digital transformation, the frictionless member experience, automating the heck out of everything with AI, and how all these things have become table stakes. And of course, we write a lot about the never-ending quest to attract Gen Z. So it always surprises me – albeit not completely – when I see a credit union come up short on what by this point should be fundamental technology.
Well, let me tell you a story about my oldest granddaughter. I am very proud to say that she just started her freshman year at San Diego State University. She’s majoring in criminal psychology, which I find both intriguing (because I’ve watched too much Criminal Minds) and frightening (wondering what diagnosis she might come up with for me). But I digress.
There are two things you need to know about being a freshman at SDSU. First, you’re required to live on campus that first year. Second, you’re not allowed to have your own vehicle on campus. This obviously creates a transportation challenge. To help, students have access to Zipcars. If you’re unfamiliar with Zipcars, don’t worry. I was, too. Turns out they’re basically automobile equivalents of those motorized scooters you see in Downtown Anywhere. You hop in, validate your membership, and take off. Then when you bring the car back, your time is billed to your debit or credit card.
Both my son and his wife work in education – he as a teacher/coach and she as an administrator – so unsurprisingly my granddaughter got her first checking account at the educational credit union where her parents bank. The problem is, she doesn’t want the Zipcar charges hitting her regular checking account. We talked about it and decided the best option was to go to another institution where her account and her debit card would be used only for Zipcar funding.
I know Chime would’ve been the easy button, but I’m not about to send any grandchild of mine to a devil fintech like Chime. I googled a couple of the bigger credit unions in town and found one that specifically claimed to offer online account opening. Bingo, right? Wrong.
When my granddaughter got to what should have been the end of the process, their website displayed a notice that someone would follow up with her shortly. Two days later, she got an email that provided a list of the documents she needed to bring into a branch. Just to refresh your memory, my granddaughter has no car and no access to Zipcar until she gets her new debit card. In short, a big, fat credit union fail unfolded right before our eyes.
In a fit of exasperation, I suggested she try <BIG BANK NAME REDACTED HERE>, which I knew had a student account. My granddaughter opened her new account there, taking care of everything online. She is now Zipcar-ready.
So what happened here? A very healthy credit union – one you would expect to have a robust technology stack – had the opportunity to land my 18-year-old granddaughter as a member, possibly for life if she sticks around San Diego. Instead, that credit union’s technology failed her. Which is why I say, credit unions, you need to do better – much better.