How Credit Unions Can Use Digital Tools to Strengthen Relationships with Members
Although digital banking has been around for decades, the global pandemic changed the way people interact with their financial institutions by accelerating the adoption of online banking. Social distancing showed consumers that they rarely need to interact with their institutions in person, and most banking transactions today are handled online - bringing speed and convenience to consumers. Few would argue that it’s become essential for credit unions to supply a seamless digital experience to meet consumer expectations in the post-Covid era.
As financial institutions become increasingly competitive, customer experience is expected to become the differentiating factor to retain and grow credit union membership. Cohesive digital solutions can upgrade the member experience by improving ease of use, adding personalization, and increasing demographic appeal.
New digital tools are on the rise, and the broadening of AI-based tools will only increase new technology. Successful institutions have shifted their mindsets to view their primary landscape as digital. While in-person experiences are still important, consumers are beginning to view them as secondary.
PYMNTS research finds that nearly 25% of consumers would want to change financial institutions if their digital solutions are not adequate, and this is expected to grow as younger generations come of age. Since improving the digital experience of credit unions will only become more important in the future, credit unions who are early adopters will be able to retain and attract more members; those who wait risk a difficult catch-up process.
Before exploring how credit unions can better implement digital solutions, let’s dive into the 3 main differences digital solutions can make for credit union members:
1. Digital solutions make credit unions more accessible to members
People have become accustomed to having any information they need right at their fingertips, and this includes their banking details. Whether a user is on their phone, computer, or in their credit union’s branch, they expect their bank to meet them right where they are with the information they need.
This shift to omnichannel solutions, or providing a cohesive experience across all platforms, makes members feel reassured knowing they have access to all the financial tools they need, whenever necessary.
Since the pandemic, nearly anything that can be done in person can also be done online, and many financial institutions allow users to engage completely digitally. Consumers want an easy approach, so digitalization is a must to compete with tech-savvy institutions.
2. Data-driven tools provide credit union members with the personalization they need
According to a PYMNTS survey, 72% of consumers want personalization from their financial institutions. While personalization can be difficult at scale, technology has advanced to the stage where it can offer members a unique and tailored experience based on their circumstances. .
The key to personalization is providing insights and information based on the member’s unique circumstances. Credit union members want to be recognized for their individual situations and guided toward their goals in a way that matches their financial position and ability. Personalization allows users to feel like their financial institution really cares about them.
The upside to incorporating personalization for credit unions is immense. Digital solutions like Paperwork can identify gaps in a user’s financial picture and recommend in-house products to address members’ needs, identifying cross-sell opportunities for the credit union. With Paperwork, users can even set reminders to follow through with these offers, automating the sales and marketing process for the credit union and keeping their products top-of-mind.
3. Increased technology earns the trust of younger generations
To attract younger generations, credit unions will need to embrace a more digital approach. Younger consumers, such as millennials and Gen Z, have grown up in a highly connected digital world. They have a greater degree of trust in technology and are increasingly conducting banking and other transactions online, where convenience and speed are paramount. Online banking and digital transactions offer the convenience of accessing financial services and conducting transactions from anywhere and at any time. This level of flexibility aligns with their expectations and appeals to their preference for streamlined and “one-click” online experiences.
Additionally, younger generations place a significant emphasis on transparency and information availability. Digital financial solutions typically provide them with real-time access to account balances, transaction history, and detailed financial insights. This transparency enhances their sense of control and empowers them to make informed financial decisions.
Digital competitors for credit unions are only becoming more robust. With the rapid advancements in technology, credit unions can no longer afford to sit on the fence when it comes to accelerating their digital transformation strategies.
How Credit Unions Can Implement Digital Solutions
The member experience holds the power to either enhance or erode trust, emphasizing the importance of ensuring top-notch quality in digital solutions. Implementing any digital tool that proves challenging or confusing to use would be counterproductive, as a subpar digital experience can inflict more harm than not having a digital experience at all.
A positive digital experience, however, can potentially improve trust, increase member retention, and grow membership. To find out why financial wellness is so important for member engagement, check out this post.
Due to the costly and complex nature of technology development, more credit unions are turning to third-party providers for technology solutions. By doing so, credit unions can accelerate their digital strategy and bring white-labeled digital experiences to market more efficiently.
The Paperwork Digital Experience
Bringing financial well-being to the digital landscape, Paperwork combines personalized insights, behavioral incentives, and robust support systems to improve the user’s financial health.
Our easy-to-use app offers unique guidance to each user based on their circumstances and provides a wide array of capabilities to support their financial health, such as emergency planning, an action list with reminders, a digital organizer to view everything in one place, and access to financial coaching.
Paperwork is the one-stop digital solution for financial wellness at your members’ fingertips. To learn more about how Paperwork can transform your credit union’s digital financial wellness experience, schedule a demo today.