Credit unions (CUs) rely on their members’ loyalty to compete in a saturated financial services market. This means CUs must be carefully attuned to member’s financial needs and the innovations they want most as CUs invest in new products and services aimed at improving the way members engage with their FIs.
Most CUs strive to deliver a simple, personalized user experience. This means providing solutions that enhance the banking experience regardless of which channel members use to interact with the CU. In many cases, it also requires partnering with emerging FinTechs that are able to quickly deliver the innovations members want most. The new Credit Union Tracker highlights the latest solutions to emerge from these partnerships and how CUs are finding innovative ways to engage with their members, collect data insights and improve services.
Around the Credit Union World
In Pennsylvania, a local CU is working to enhance its members’ financial journeys with improved personalized experiences using data analytics solutions.
Pennsylvania State Employees Credit Union (PSECU) recently announced plans to implement tools from FICO to deliver “near real time” personalized alerts. Under the partnership, PSECU will integrate FICO’s Customer Communication Services (CSS) solution to enhance members’ experiences, improve onboarding and offer greater transparency and efficiency.
Speaking of efficiency, a new service from a Maryland-based CU aims to simplify the small dollar loan application process. The new service, Flex Loan, is being offered by SkyPoint Federal Credit Union and was established through a partnership with cloud-based mobile lending platform QCash Financial. Small dollar loans are often sought when members need funds to cover unexpected expenses.
Auto lending is also getting an upgrade in the CU market. Credit Union Leasing of America (CULA), a provider of indirect vehicle leasing solutions, recently upgraded its Seamless Lease Connection lease management system. The upgrades are designed to reduce the time involved in processing auto loans and enable CUs to more quickly respond to clients’ needs.
Artificial intelligence (AI) is another innovation quickly gaining ground in the CU market. Already employed as chatbots and virtual assistants, AI-based solutions can be used to review volumes of data to detect potential acts of fraud. As outlined in the May 2019 PYMNTS Credit Union Innovation Playbook, 79.4 percent of CUs have made AML-based initiatives their top investment priority in the past three years. This month’s Tracker includes a data-rich Deep Dive on how AI is changing the way CUs fight fraudsters and build member trust.
Cobalt CU Taps Data To Understand Members’ Innovation Priorities
Most CUs understand that engagement is key to building trust among members. In an effort to strengthen engagement, Cobalt Credit Union recently implemented interactive video banking services for its web and online channels that enable members to perform different transactions remotely, including opening a new account. For the July Feature Story, PYMNTS spoke with Cobalt President and CEO Gail DeBoer about how interactive communication solutions and data analytics help inform the CU’s innovation strategy and how it determines which solutions have the highest returns on investment.
About the Tracker