Guest Editorial by Doug Brown, Chief Product Officer, Digital Banking, NCR Voyix
Credit unions across the country continue to navigate ongoing economic turbulence, skyrocketing member expectations and widespread deposit flight. However, as the second half of the year progresses, there are also strong opportunities ahead to win back member trust and leverage technology to help them better their financial positions. Below are three trends for credit unions to watch as the battle for member loyalty persists.
Member relationships are being viewed more holistically.
Historically, many viewed consumer and small business relationships in silos; the digital member experience varied from the contact center experience which looked different than the branch experience. Such disparate systems and vantage points often resulted in disconnected and inefficient interactions, harming both member satisfaction and efficiencies.
To overcome these challenges, more credit unions are now taking proactive steps to approach retail and small business relationships in a more comprehensive way. This requires them to forgo a channel-centric approach, instead connecting technology and experiences throughout the member’s financial journey. Such initiatives are only possible with the strategic use of data and a digital-first philosophy.
Members increasingly turn to new sources for advice – and not all are created equal.
As inflation and the cost of living remain high, members across the country continue to struggle. While credit unions want to offer meaningful help, they must determine how to capture the attention of members who are currently turning to concerning sources for financial advice. For instance, younger generations are opting to look to unverified influencers on TikTok, Instagram or other social media platforms instead of coming into the branch with a question or concern.
To better connect with members and ensure they are receiving relevant and useful advice, more credit unions are taking on a more informed approach powered by real-time data, delivering resources, tools and education within the context of a member’s unique journey. Incorporating information within a member’s own financial situation will help them better understand, retain and apply information, optimizing impact. More credit unions are looking to open APIs to allow them to innovate and add a wider range of financial tools more quickly, which also supports efforts to provide financial guidance to members.
Small business gains big focus.
Consumers aren’t the only ones navigating an uncertain economy. As small businesses continue to face notable impacts, many credit unions are determining the most effective ways to step in and support. Areas of significant opportunity include better cashflow management tools, education and guidance around new digital payment options and more robust budgeting assistance. Those that support this segment successfully, offering the right tools and assistance, will be well-positioned to increase deposits.
Data is the great enabler.
The common thread in all of these trends is that they are largely dependent on the strength and quality of a credit union’s data. Putting in place the technology and tools that facilitate more seamless data integration across all channels, including digital, the branch, the contact center, etc., is the only way to really know and understand who a member is and how to best support the full spectrum of their needs. Being able to show that the credit union knows something pertinent and material about the member – and then taking relevant action based on that information – creates connection and engagement.
In times of uncertainty, credit unions continue to show up for consumers and businesses with a commitment to exceptional service, an eagerness to implement digital-first strategies and a hyper-focus on tailored financial wellness support. Those that leverage the power of real-time data to support the holistic member experience will be well positioned for success.