Empowering Financial Futures: How Credit Unions Can Use Education to Attract New Members
A healthy credit union requires consistent growth to be sustainable over the long term. Competitive products and services don’t always lead to buying decisions in an oversaturated market, but resources like financial education tools can make credit unions stand out and lead to increased member acquisition and retention.
While products and services are important for growth, offering free resources to improve financial literacy can help your credit union differentiate itself and increase member acquisition. These resources can significantly enhance the overall financial well-being of members, which in turn only benefits the credit union.
Let’s explore why financial literacy is so important for Americans and how credit unions can use these resources to onboard new members.
Answering the call for financial literacy
According to BMO’s Real Financial Progress Index, 77% of adults in the US would like to improve their financial literacy. Most Americans do not receive any form of personal finance education, and diving into financial education for the first time as an adult can feel daunting.
Many individuals often seek financial advice from friends and family. However, given the prevalent lack of financial literacy among the population, this approach can potentially lead to unsound financial decisions.
Financial education is directly connected to financial well-being. Research from the Federal Reserve explains that 60% of adults are not confident in their retirement decisions, and more than 25% of adults have no retirement savings. Most people lack the necessary knowledge about how much they need to save and when they should start until it’s nearly too late to catch up.
This problem extends beyond retirement; most Americans lack basic knowledge about budgeting, saving, loans, and more. Providing financial education can empower members to make better financial decisions, while also increasing trust with your institution.
Adding value through financial education can help acquire new members
For those looking to level-up their financial knowledge, offering free resources to improve literacy can be a simple way to attract new members to your credit union.
Millennials are now the largest generation in the workforce, and that could pose challenges for credit unions unless they find ways to engage that audience. Currently, 68% of Millennials prefer large banks to credit unions. At the same time, 92% of Millennials believe banks can’t be trusted. Millennials are extremely aware of their need for financial education, with 64% of their generation saying they are poor at managing money. Credit unions offering free educational resources could drive a wedge between banks and Millennials, giving them the push they need to switch to a credit union.
Providing accessible, accurate, and personalized education can help cut through the noise and actually improve people’s financial well-being as they gain more knowledge. Offering free education services can get these curious new members through the door, and making a positive impact on their lives through boosting their confidence can retain members.
Taking tips from the past
Financial education has long been used by financial institutions to attract and onboard new members. For decades, institutions have brought prospective members in with seminars, whitepapers, educational blogs, and other forms of content. In the post-Covid digital era, however, consumer expectations have shifted and customers seek a more personalized, convenient experience.
Using this to inform the present, it’s clear that providing financial education to get members in the door works. However, in the digital age, with smartphones and advanced technologies, financial education needs to be offered in a convenient and actionable way to be effective at attracting and engaging members.
To learn more about the importance of digital tools, visit this page.
Mobile Education: The Paperwork Difference
Adding Paperwork to your credit union’s financial well-being arsenal can appeal to members and prospective members seeking to increase their financial literacy and improve their financial well-being. Our white-labeled mobile app is designed to drive action and engagement by providing them with accessible education and personalized insights in the palm of their hands.
Paperwork also tracks each member’s progress and sends reminders and notifications to keep them on the path to financial wellness, ensuring they stay engaged and on track during each stage of their financial journey.
Offering Paperwork to your members can help them improve their financial wellbeing, while deepening member engagement, building loyalty and driving your organization's continued growth.
To find out more about how Paperwork can help your organization bring on new members, schedule a demo today.