Five technology advances that improve members’ financial wellness

In today's digital age, the evolution of technology has transformed how financial services are delivered, making it easier for credit union members to achieve financial wellness. By leveraging advanced tools and features, credit unions can provide actionable and personalized financial wellness solutions that tangibly improve the financial health of their members.

Here are five key ways technology helps facilitate financial wellness:

1. Account Aggregation

Account aggregation allows credit union members to link all their financial accounts—such as checking, savings, credit cards, loans, and investment accounts—into a single platform. With a comprehensive view of their financial landscape, members can easily track their spending, monitor their goals and make informed financial decisions.

Account aggregation not only saves time but also enhances financial awareness. By having a consolidated view of all accounts, members can identify spending patterns, detect potential issues, and take proactive steps to improve their financial health. This holistic approach is crucial for setting and achieving financial goals.

2. Automated Transfers

Automated transfers can help members meet their budgetary and savings goals effortlessly. This technology allows members to set up recurring transfers between their accounts, ensuring that a portion of their income is consistently allocated to savings or debt repayment. Automation removes the burden of manual transfers and reduces the temptation to spend money meant for savings.

For example, members can automate transfers to their savings account every payday, contributing to their emergency fund or long-term savings goals without any additional effort. This consistency helps build financial discipline and accelerates progress towards financial objectives.

3. Alerts and Reminders

Mobile alerts and reminders are powerful tools for maintaining financial wellness. These notifications can be customized to provide timely information about account activity, such as low balances, upcoming bill payments, and unusual transactions. By staying informed, members can avoid overdraft fees, missed payments, and potential fraud.

Alerts also encourage proactive financial management. For instance, a low balance alert can prompt a member to transfer funds or adjust spending to avoid overdrafts. Similarly, reminders about due dates for bills ensure timely payments, helping to maintain a good credit score and avoid late fees.

4. Personalized Financial Coaching

Technology has made it possible to offer personalized financial coaching through digital platforms. Members can access expert advice and tailored financial plans based on their unique circumstances and goals. This personalized guidance can be delivered via video calls or interactive tools within the credit union's app or website.

Personalized financial coaching helps members navigate complex financial decisions, such as buying a home, planning for retirement, or managing debt. By providing individualized support, credit unions can enhance member engagement and loyalty, ultimately contributing to better financial outcomes for their members.

5. Goal Setting and Progress Tracking

Another valuable technological advancement is the ability to set financial goals and track progress in real-time. Members can establish specific financial targets—such as saving for a vacation, paying off a credit card, or building an emergency fund—and monitor their progress through the credit union's digital platform.

These tools often include visual aids, such as graphs and charts, that illustrate progress towards goals. Seeing their achievements can motivate members to stay on track and adjust their strategies as needed. This interactive experience makes financial management more engaging and rewarding.

How Paperwork can help

The evolution of technology has significantly enhanced the ability of credit unions to provide actionable financial wellness solutions to their members. By embracing these technological advancements, credit unions are better positioned than ever to foster financial health and well-being among their members and communities they serve. 

Paperwork’s all-in-one financial wellness platform can help your credit union harness the power of technology to deliver exceptional value and service to your members. For more information, schedule a consultation with us today.