How Credit Unions Can Help Members Achieve their Financial Resolutions
As we enter the new year, many people are setting their sights on bettering themselves and their lives. Among the myriad of resolutions, improving finances is consistently a top priority. According to a study by Fidelity Investments, 66% of people are considering a financial resolution for 2024.
When it comes to resolutions, credit unions have a pivotal role to play. By helping members achieve their financial goals, you can enhance individual lives while fortifying the community and strengthening the fabric of your credit union.
Let’s explore how credit unions can help members achieve their financial goals.
Play an active role in member goal-setting
When navigating the road to financial wellness, your members must first define their destination. Many people aspire to “improve their finances,” but what does this really mean? Without follow-through or definition, this broad aim can mean different things to different people and encompasses a variety of more specific goals, such as augmenting monthly savings or boosting retirement income.
For a credit union, the initial step in helping members achieve their goal of financial wellness is to understand what financial wellness means to them and to help them crystallize their goals on their road to financial wellness. Through personalized coaching, insightful surveys, and comprehensive financial wellbeing programs, your credit union can help members to the first step toward financial empowerment, while gathering necessary information about member aspirations.
Personalize the member journey for 2024
Once the goals are clear, you must determine how your credit union can facilitate the journey toward these aspirations. Financial goals, while diverse, often align under larger themes. By segmenting your audience based on their goals, you can tailor marketing, products, and services to cater effectively to a wide range of needs.
This personalization extends beyond advice and products to the entire member experience, with the goal of making each member’s journey unique and engaging. Holistic financial wellness programs, such as Paperwork, make it easy for credit unions to provide scalable personalization while engaging and acquiring a wide range of members at a low cost.
Advocate for small, sustainable changes
The path to financial stability doesn't require a leap, but rather a series of measured, sustainable steps.
For example, a member aiming to increase their savings might be tempted to eliminate all discretionary spending. While this might be possible for the month of January, such drastic changes will likely lead to a backslide.
Instead, encourage members to embrace small, gradual modifications. For members looking to begin their retirement savings, increasing their contributions by 1-2% per month can feel more achievable than jumping immediately to 15% contributions. This sustainable approach not only fosters long-term consistency but also encourages those hesitant to take the first step.
Maintaining momentum for the whole year
According to Time Magazine, 80% of people abandon their resolutions by the end of February, and only 8% maintain their resolutions through the whole year. Staying motivated can be difficult, especially in a society focused so much on instant gratification.
To keep members committed throughout the year, consider integrating immediate encouragement, gamification, and enjoyable elements into your financial services. Whether it's a reward for reaching a milestone or incorporating interactive financial education tools, making finance fun and rewarding can significantly boost motivation and engagement.
How Paperwork can help your members reach their goals
As 2024 begins, it's important for credit unions to empower their members to reach their goals in the new year. By understanding their goals, personalizing their experience, advocating for sustainable habits, and keeping them motivated, you can nurture a stronger, more resilient community.
At Paperwork, we understand the need for a personalized, engaging, and fun approach to financial education and management. Our white-label mobile app is crafted to spur action and maintain engagement, offering accessible education and tailored insights right at your members' fingertips. By scheduling a demo with us, you're taking a step towards revolutionizing how your credit union supports its members' financial journeys.
Schedule a demo with us today and take the first step towards a prosperous 2024 for your credit union.