Skip to main content

From the very start, members have always been the lifeblood of every credit union. A high member acquisition count suggests the credit union’s health is strong, whereas consistent member churn and poor retention often spells trouble for the credit union’s overall health and long-term existence.

According to the U.S. Chamber of Commerce, 68 percent of customers leave a business because they’re upset with the treatment they’ve received, a perceived attitude of indifference from the business, or the general impression of not feeling valued. It takes effort to attract new members, but it takes even more effort to retain them. 

Credit unions care about their members, and those who plan ahead and anticipate what their members need understand that acquisition is only the beginning of their journey. 

Part of caring for those members and doing everything you can to retain their loyalty and trust requires the resources to begin improving their economic health. Due to the advancement of digital fintech and competition throughout the financial services industry, it’s easier than ever for consumers to leave their current financial institution. According to PYMNTS in late 2023, nearly 40 percent of Millennials and Gen Zers would leave their financial institution over a lack of innovation. 

Meeting community need through retention, not member acquisition

Credit unions who include innovative financial tools like QCash small-dollar lending are signaling to their members that they truly care about retaining their members for the long-term and are willing to implement the specific assets capable of fulfilling those members’ personal finance goals. 

Member Acquisition
Photo: Faux Els | Pexels

One benefit of QCash loans in helping credit unions retain members, for instance, is the platform’s ability to improve members’ credit scores. Although they’re a form of debt, small-dollar loans serve as a way to build credit by contributing to members’ payment histories and credit mix while lowering their credit utilization ratio. As a whole, those three factors account for 75 percent of members’ credit scores. As the member makes consistent, on-time payments, their score will improve with time.

Perhaps most importantly, according to Pew Research, responsible small-dollar loans emphasize financial health and stability as much as any consumer loan available. Paired with financial mentorship from credit union staff, digital lending tools cannot help but inspire a sense of goodwill, loyalty, and trust. This advantage contrasts sharply with the bad-faith risk inherent in the payday loan industry that costs 12 million consumers $9 billion in fees every year with a national annual percentage rate average of 391 percent.

Additionally, small-dollar loans meet the needs of members with little-to-no credit score. That means small-dollar loans are easier to access, provide funds quickly (i.e. QCash!) during times of financial emergency, and give members sufficient time to repay and recover from a given life event. 

QCash is committed to being a central part of your credit union’s member acquisition strategy, but our focus is especially sharp at keeping them at your credit union for the long-term. Learn more about the QCash small-dollar lending platform by going to our Request a Demo page or Contact Us and speak with a QCash representative.