Consumers turn to credit unions for a number of reasons – consumer-centric pricing on products and services, commitment to their local communities, and refined member service and mentorship. Remaining committed to the principles of financial health and building on those strengths will help your credit union attract and retain loyal members.
Despite that, today’s credit unions find themselves battling in the competitive arena of relevance. This was an issue even prior to the emergence of COVID-19 in March 2020. While COVID accelerated fintech innovation in 2020, digital transformation in the financial services industry was already underway. COVID just pushed the necessity forward, both on behalf of CUs and their members. The standard has now been raised for member experience; members now expect catered, individualized and frictionless digital engagement with their chosen credit union.
Credit Unions Are Championing Digital Innovation and FinTech
Such digital innovations are now a must-have, and credit unions are looking to artificial intelligence (AI) and relationship-based algorithms in digital platforms like QCash Financial’s small dollar lending program to enhance member experience.
That doesn’t mean it’s been an easy acceptance or transition for many credit union executives. Rather than thinking forward and seeing them as the financially-inclusive asset they are, many executives still see digital onboarding and fintech as a threat to brick-and-mortar credit unions. Instead of dreading this era of digital innovation, credit unions need to embrace this evolution in banking tech that will actually strengthen their digital offerings and tout a more advanced and brand-enhancing experience that helps set the credit union up for future success.
Why Credit Unions Should Ensure Simple, User-Friendly Digital Tools
We live in an era when our phones ping with a constant stream of marketing emails, social media notifications, and texts. Then consider all the financial notifications we receive- automated marketing emails, mobile banking notifications, and online bill-pay options. These well-intentioned pieces of info will overwhelm our senses if we allow it, and can hinder member experience efforts.
Credit unions must be judicious in determining which financial tools or functions to employ, and which will scare away members. That experimentation may take a little time, but sometimes it just takes a little smart tech to make the elaborate, simple. For instance, QCash’s relationship-based decisioning algorithm delves deeper into the borrower’s unique partnership with their credit union. Also consider its ease-of-use – merely six clicks to apply for a loan, and just 60 seconds for a deposit in their account. That level of complex digital fintech boils down to a simple financially-inclusive digital banking asset that provides members the fast liquidity they need to take care of life’s unexpected emergencies.
Maintaining Member Personalization At Credit Unions
A 2020 Credit Union Innovation Index study found that only 11 percent of credit unions have innovated their data analytics over the past three years. Unfortunate, since 30 percent of millennial credit union members in 2021 would at least consider switching primary financial institutions over their credit union’s adoption of innovation.
Using technology to enhance every member relationship can help bridge the chasm between traditionalist members and individual branches. From fast-performing queuing systems to tracking member preferences, such omni-channel innovations as digital scheduling appointments and live-streaming financial education classes can also promote personalization of member products and services. Such features will soon be indispensable in the ever-evolving credit union and financial services marketplace.
To learn more about the QCash digital small dollar lending program and its potential benefits to your credit union’s membership, contact us for a demo today.