When catering to a limited group of members, credit unions need to think carefully about how to address member needs. That’s why some credit unions are embracing the market’s “mom and pop” legacy and emphasizing their ability to offer the type of personalized member services that rival banks and FinTechs struggle to deliver.
The latest PYMNTS Credit Union Tracker™, powered by CO-OP Financial Services, features news on new mergers and partnerships alike, along with notable recent headlines from around the CU space.
News from the credit union market
Some credit union service organizations (CUSOs) are stepping up their investments in predictive analytics solutions to help member organizations better anticipate members’ needs.
CUSO OnApproach, for example, recently collaborated with marketing platform Vantedge to offer its member organizations access to real-time data analytics to help them better serve members. The data can be used to help CUs promote products, determine opportunities to recruit new members and find new ways to engage with existing members.
Meanwhile, the CUSO Payment Systems for Credit Unions (PSCU) recently launched another data analytics solution specifically aimed at helping member organizations address the business needs of their members.
And, a government agency is working with another CUSO to encourage greater collaboration between credit unions and small businesses. The Small Business Administration (SBA) announced its plans to work with the National Association of Federally-Insured Credit Unions (NAFCU) to promote the SBA’s loan offerings to NAFCU’s business members.
NAFCU also urged the U.S. Department of Labor (DOL) to help credit unions by relaxing some of its rules related to overtime. A letter sent by a NAFCU attorney said the proposed DOL law, which was halted by a federal judge last year, would hamper the growth potential of the credit union market. The letter urged greater flexibility to provide more reasonable overtime requirements for CUs.
Find more recent notable CU headlines inside the Tracker’s News and Trends section.
A ‘mom and pop’ shop, and proud of it
Larger banks and FinTechs tend to have deeper pockets than credit unions and therefore are more able to roll out new services and solutions for their customers. As a result, the credit union market can be branded with a “mom and pop” reputation — not that there’s anything wrong with that. Some credit unions are choosing to embrace the “mom and pop” moniker and, in turn, are emphasizing the industry’s ability to compete with financial rivals in the field of customer or member services.
Among them is the Knoxville Teachers Federal Credit Union (KTFCU) of Knoxville, Tennessee, which serves a limited member base of 7,200 in the local education market. KTFCU’s treasurer and manager Dave Underwood recently spoke with PYMNTS for this month’s Tracker feature story, explaining why the credit union sees the market’s “mom and pop” legacy as a strength when it comes to addressing member needs.
To read the story, check out the October edition of the Credit Union Tracker™.
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The PYMNTS Credit Union Tracker™, powered by CO-OP Financial Services, serves as a bimonthly resource for staying up-to-date on the most significant trends and developments in the credit union market.