Boosting Credit Union Member Engagement: The Power of Financial Wellness
Keeping credit union members engaged is increasingly difficult in the digital age. With rising competition among banking institutions and the plethora of new fintech products available, consumers have more choices than ever. The typical member engagement strategies of high yield accounts and low borrowing rates are no longer enough to keep your credit union top-of-mind when members make their product choices.
To stay competitive, credit unions must double down on what they’ve always done best – developing personalized relationships and building loyalty by focusing on their members’ financial wellness.
To learn more about how Paperwork helps credit union members reach their financial health goals, click here.
What is Financial Health?
The Consumer Financial Protection Bureau (CFPB) aims to provide answers to consumers’ pressing money questions. They focus on improving the financial health of the general public, and through conversations with consumers, they have come to define financial well-being as:
“…having financial security and financial freedom of choice, in the present and in the future. More specifically, having financial well-being is when you:
• Have control over day-to-day, month-to-month finances
• Have the capacity to absorb a financial shock
• Are on track to meet your financial goals
• Have the financial freedom to make the choices that allow you to enjoy life”
Two consumers can be in nearly identical financial situations while having varying degrees of financial well-being since the above markers can be subjective. Quantitative markers like credit score don’t capture the full picture of a consumer’s financial health.
Credit unions must also take qualitative traits into account to fully understand consumer needs.
4 Ways Focusing on Financial Wellness Improves Credit Union Member Engagement
1. Financial wellness programs are an accessible point for members to get more involved with their credit union
The majority of Americans struggle with their financial health. The Financial Health Pulse ® 2022 US Trends Report indicated that in any given year, between 66% and 72% of Americans were financially unhealthy.
Because financial health is a common problem, financial wellness programs are an extremely accessible point of engagement for members. What better way to deepen affinity with members than by helping them organize and take control of their financial lives?
And with the vast breadth of financial topics the average person needs to know about, financial wellness programs are not just for the financially unhealthy. Even a financially healthy person can benefit from more education and personalized insights.
2. Improved financial health gives members more resources to engage with their credit union
Credit union members living paycheck-to-paycheck typically don’t have the resources to engage with the credit union’s full suite of products, like savings products or investment services. To take advantage of everything their credit union has to offer, it’s likely that their financial situation would need to change.
Focusing on members’ financial health by providing the tools to improve their credit score, budget more effectively, or address their financial goals ultimately improves their financial situation and places them in a better position to engage with other financial products offered.
3. Members feel increased trust and loyalty when their credit union cares about their financial well-being
When a credit union makes a difference in their members’ financial health by improving their financial well-being, helping them meet their goals, and decreasing their stress around finances, the credit union earns their members’ trust and loyalty.
According to a Gallup study, 77% of financial institution members were found to have increased engagement when they felt like their institution cares about their financial well-being.
When consumers feel like their institution will make a change in their overall financial health, they become more emotionally invested in their membership. To learn how making an emotional impact on members creates advocates for your credit union, visit this page.
4. Financial wellness tools keep credit unions top-of-mind
Digital financial wellness tools can provide members with guidance on how to improve their financial situation and spot gaps in their planning. This provides credit unions with a unique opportunity to offer solutions and products that fulfill a financial need in the right place at the right time.
Having these tools available online and within mobile apps helps your credit union reach members where they are and stay at the center of their financial lives.
To learn more about the importance of digital tools for credit unions, click here.
How to Implement a Financial Wellness Strategy
Financial health looks different for everyone, so one-size fits all solutions aren’t the most effective option. In order to feel like a credit union understands their needs, members must feel like their credit union empathizes with their unique situation.
The key to creating a financial wellness experience that feels unique to the user is personalization. This can be implemented by offering financial coaching as well as more accessible digital solutions.
How Paperwork Can Help Credit Union Members with their Financial Health Struggles
Paperwork is a holistic financial wellness app that credit unions can white-label and provide to their members. We empower members to make confident financial choices, plan for the future, and protect their families with our innovative financial education and organization system. It’s not a single-point solution, but rather a comprehensive guidance plan through every phase of life.
Personalization is the key to the Paperwork experience. We provide financial insights that are relevant to users, and we deliver actionable steps they can take to improve their financial standing, based on their specific needs.
Sticky features like an Action List with timely alerts, an Organizer to store key documents, and access to financial coaches directly in the app keep users returning, engaging with the app and their credit union.
Additionally, Paperwork includes emergency contacts, which allows members to share information with trusted loved ones in a crisis. This encourages a credit union member’s family to get involved and maintains the credit union relationship across generations.
The Solution to Credit Union Member Engagement
Many credit unions have already adopted financial wellness initiatives for their members, which are primarily centered around educational content. But with advancements in technology, credit unions can make a bigger impact on their members’ financial wellness through compelling, interactive solutions that build loyalty, increase engagement, and boost cross-sell opportunities.
Paperwork offers the personalization and modern experience members expect, in an easy-to-use app that makes financial health accessible to everyone. If you’d like to see the difference Paperwork can make in your credit union’s member engagement, schedule a demo today.