Adding Value to the Member Experience

In today’s day and age, consumers expect more bang for their buck than ever before. Subscription-based services like Amazon Prime, Spotify and AAA, among others, pack value into base services for a low monthly cost, raising consumer expectations for more than the basics for less money. For example, AAA is not just a roadside assistance service any longer; members also have access to money-saving discounts and other perks.

Analyzing larger trends within today’s retail space can serve as an example for credit unions. By finding ways to increase value for members while keeping costs low, both for members and the institution itself, credit unions can raise acquisition levels, quality of member experience and retention rates.

While these additions can be difficult to implement, working with a technology vendor enables credit unions to more quickly and nimbly provide value-added service offerings without putting a drain on resources. Today’s technology vendors already have these services and platforms developed and are specialized in them, whereas the credit union’s core service and organization would have to develop technology from scratch, impeding with the final product.

Choosing Value That Captivates Members

There are many different types of value-added services that credit unions can offer to increase the appeal of their base service offerings and products. Most successful add-on services will provide value that is relevant to consumers’ daily lives. Perhaps one of the biggest needs or concerns of today’s consumers is data privacy, and keeping wireless devices and personal information safe, especially with notable large-scale breaches affecting every company from Equifax to Chipotle within the last year.

In 2017, identity crimes impacted nearly 80 million Americans (in other words, two new victims every second), which represents about 25% of the U.S. population. Cyber and identity crimes are becoming increasingly widespread and can affect almost anybody, yet many consumers do not have a means of protecting themselves and proactively monitoring against threats, which creates a perfect gap for credit unions to fill.

Cybersecurity and Identity Protection

There are two distinct, yet critically important conversations taking place today about cybersecurity and financial health. Cybercrime continues to plague the industry and these threats relentlessly target both credit unions and their members. Data breaches and identity crimes have all too often impacted the victim’s financial health. For example, fraudsters may open new accounts in members’ names or gain access to existing accounts and max them out. Criminals can also target your members’ devices with malware and ransomware.

Not only can it affect members’ credit, it can also impair their ability to make purchases, or open accounts and loans that would provide additional income to the credit union. On the other hand, because it impacts their finances and online accounts, members may also associate negative consequences with the credit union itself, even when the situation is out of the institution’s control. This can hurt the relationship that credit unions have with their members or, even worse, cause members to switch institutions.

While cybersecurity and identity protection may not at first seem like the most logical offerings for credit unions to provide, in reality, these services relate strongly to their bottom line. By empowering members to protect their devices with cybersecurity solutions and safeguarding their personal data with identity protection services, credit unions help members reduce their chances of becoming victims of identity crimes, in turn preventing negative consequences for members and credit unions alike.

Delving Into Identity Protection

A common misconception is that identity protection is synonymous with credit monitoring. While credit monitoring is an important component of identity protection, as a drop in credit score can alert consumers that they may be a victim of fraud, it is a retroactive solution. A robust identity protection program coupled with cybersecurity solutions will also incorporate tools that enable members to proactively combat fraud. A wide range of comprehensive protection options and tools can be mixed and matched to meet the unique needs of a credit union’s field of membership.

For example, consider the needs of individual credit union members versus small business members. The key lies in ensuring the tools and services credit unions offer their members meet all aspects of their identity protection needs, from endpoint security for protecting devices from potential vulnerabilities, to internet monitoring to identify areas of the dark web where personally identifiable information is being posted.

ID Protection Vendors: What to Look for

Comprehensive identity protection services include much more than just credit monitoring. These services should be customizable and allow the unique needs of both the credit union and its members to be met. They should also include a dedicated resolution team that enables quick responses and focuses fully on the member in case fraud does occur, as well as provides an excellent member experience. The technology should be easy to use so members can quickly set up and intuitively navigate all its capabilities. Lastly, use white label products and services, meaning ones that are branded to the organization so they can provide a seamless experience, and allow the credit union and its value to be at the forefront.

Benefits of Offering Comprehensive Protection

The safety of information is important in this industry, and when members are protected, the credit union is protected. Giving members the ability to tack on additional services to their accounts adds value. Perhaps the biggest benefit is that this provides another point of engagement where credit unions can connect with members. Members set up these services and are then sent regular alerts regarding their devices, personal data, and helpful information about overall threats and identity protection trends – all straight from the credit union.

With a comprehensive strategy, not only will the credit union actively provide tools members can use to safeguard themselves against a multitude of threats, but if an identity crime does occur, it will be able to step in and “save the day” with resolution services. If credit unions can effectively address threats, they will become essential to their members’ financial health and overall well-being.

A speedy and comprehensive response is also critical, as members are likely to leave during the aftermath of fraud. When members feel their credit union is providing a relevant service, they will be more loyal and less likely to switch institutions.

Laura Bruck is Vice President, Marketing and Solution Strategy for EZShield. She can be reached at 410-809-2504 or lbruck@ezshield.com.