The Insiders’ View on How CUs Can Best Reach Members

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With just one in 10 FIs offering omnichannel account opening, CUs have an opportunity to gain ground in 2023, but they must take a page out of Big Tech’s playbook on leveraging data to personalize service, PSCU’s Brian Scott explained.

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Insiders explain how streamlined omnichannel and personalized offerings can help credit unions be everywhere members are and rise above competition in the digital age.

Brian Scott, chief growth officer for PSCU, explains how personalized offerings can help CUs be everywhere members are and rise above competition in the digital age.

Credit unions are well-positioned to meet customers’ needs in the digital age. Considering that credit unions’ net branch openings have outpaced banks’ in recent years, CUs can combine a still-essential human touch with omnichannel offerings. With the right approach, CUs can differentiate themselves from the competition and strengthen community relationships.

“They know more about the customers’ business than any neobank, any alternative bank, any FinTech,” said Doug Brown, president of NCR, an enterprise provider of software, hardware and services for financial institutions (FIs). “It’s better to embrace the digital-everywhere approach rather than eliminate it and force people to embrace things they are not ready for.”

Especially in a difficult economy, CUs are uniquely positioned to help their clients and connect with their communities in times of need, providing direct lines of communication that foster trust and loyalty.

“People are worried about whether or not they are going to be OK — and they are concerned about their financial health,” said Brian Scott, chief growth officer for PSCU, the country’s largest credit union service organization (CUSO). “They’re looking to credit unions for advice.”

The trend toward digital banking is here to stay, and credit unions must be ready to embrace it if they have not already done so. This trend means understanding member needs and preferences and developing solutions that meet them where they are. The largest CU in Illinois, Alliant Credit Union, is a prime example of a CU doing just that.

By talking to their members regularly and soliciting feedback through surveys and other channels, Alliant can innovate to match its members’ needs. Alliant Chief Digital and Marketing Officer Sumeet Grover said this approach helped the company prepare for last year’s accelerated usage of contactless debit by building out capabilities before members required them.

“From a digital perspective, we try to be proactive, not reactive,” Grover said.

Brown said he believes that personalized experiences will continue to improve as FIs get better at using their data and artificial intelligence technology broadens. Credit unions have a wealth of data at their disposal, and many are just starting to tap into their potential to create meaningful relationships and transactions. As credit unions get better at using their data, they will be better equipped to meet the needs of their members and build stronger relationships.

Meeting members where they want to be met is essential in the digital age. For credit unions, this means engaging with their members across mobile channels and on their devices. It also means providing the right kinds of modern payment options. As Scott pointed out, real-time payments is the fastest-growing option, but debit is still the No. 1 choice for CU members for four years running. Scott said getting that debit card to the top of members’ mobile wallets is the ultimate prize.

“Digital issuance is the No. 1 thing to get there,” he said. “Once you’re there, rewards on debit are still a driver. If you have rewards on debit, [they don’t] have to be big. [They] can be small. “[To address the] financial wellness piece, having a higher savings yield on your checking or savings account for debit usage — it’s kind of a different form factor — but that’s an incredible driver, especially now as FIs look for deposits and consumers look for higher savings rates.”

In the future, real-time payments may eat into CUs’ debit activity, Scott noted, a reality for which they must prepare. For now, CUs can rise above competitors and strengthen their positions within their communities by understanding member needs and preferences, developing personalized solutions and meeting members where they are.

“We look at needs beyond just the transaction,” Grover said. “We want to understand the journey members will go on.”