Personalization Through Digitalization Has Become Credit Unions Strategic Focus

Credit unions (CUs) have trailed banks in overall consumer satisfaction for the third year in a row, reaching an all-time low in 2021. Of particular significance, the quality of CUs’ mobile apps ranked third in member satisfaction and fell from its 2020 score, while banks received their highest marks in customer satisfaction on their mobile apps.

While CUs have traditionally served as a consumer-friendly alternative to for-profit banks, today’s CU members expect digital banking features such as mobile check deposits, digital cards and cardless cash withdrawals. CUs that fall short in these features are at risk of losing members.

This edition of the “Credit Union Tracker®” examines what today’s members are looking for in their CUs. It also explains how CUs can leverage their unique strengths to strike a balance between digital innovation and personalized service.

Around the Credit Union Space

The Credit Union Governance Modernization Act was signed into law by President Joe Biden on March 8. The omnibus funding package passed by the Senate on March 10 focuses on funding the federal government and the National Flood Insurance Program through the end of September. The new act amends the already existing Federal Credit Union Act, allowing CUs to enhance safety in each of their branches, ensuring the safety of associates and members. It also encourages the improvement of members’ financial well-being, offering access to secure, dependable financial services, as well as provisions contained by the act, including provisions for a streamlined process to remove undesirable CU members. Additionally, the bill grants millions of dollars in funding for developing community loan funds.

Credit unions might be known for their fierce member loyalty, but there is room for improvement in terms of being known for their digital innovation. Some CU leaders realize that corporation is key to innovation, with 42% of CU executives surveyed by PYMNTS saying it is essential to work with outside vendors to ensure the smooth rollout of digital services. Forty percent said the same about credit union service organizations (CUSOs). Many CU executives have become more comfortable with homegrown digital products. In 2018, just 15% of respondents said they intend to build their own products, and in 2021, a quarter of CUs surveyed said the same. Most customers tend to stand by their primary FI, but the number of stalwarts shrinks annually and it may not be long before consumers decide it is time to make the switch.

For more on these and other stories, visit the Tracker’s News and Trends section.

TruMark Financial Credit Union on Harnessing Digital Offerings to Engage and Satisfy Members

Credit unions are traditionally known for high-touch relationships with their members, a quality Elizabeth Kaspern keeps in mind when crafting the member experience as senior vice president, chief retail and member services officer for TruMark Financial Credit Union. The CU conducts many voice-of-the-member surveys and found that members want an individualized experience — a trend that escalated during the pandemic. One of the greatest challenges credit unions face is staying up-to-date with new technologies, according to Kaspern, especially for organizations like smaller CUs.

In this month’s Feature Story, we look at the digital updates TruMark Financial Credit Union is making to engage its members and stop member loss in its tracks.

PYMNTS Intelligence: Credit Unions Rev Up Member Satisfaction

Highly people-oriented, CUs traditionally have enjoyed higher satisfaction rates than other FIs. But for the third year in a row, CUs have lagged behind banks in terms of consumer satisfaction, according to the most recent American Consumer Satisfaction Index. CUs earned an overall satisfaction score of 76 on a 100-point scale in 2021, compared to banks’ score of 78. This difference may not seem significant, but the CU satisfaction score dropped 1.3% from 2020, bringing it to an all-time low, while banks’ score held steady. The mainstreaming of digital products means that CUs are under growing pressure to roll out new services to retain members — and it’s not always easy for CUs to strike a balance.

This month’s PYMNTS Intelligence looks at how CUs can up member satisfaction by blending technology with in-person services.

About the Tracker

This edition of the “Credit Union Tracker®,” a PYMNTS and PSCU collaboration, examines what today’s members are looking for in their CUs. It also explains how CUs can leverage their unique strengths to strike a balance between digital innovation and personalized service.