4 Ways Credit Unions Can Fix Their Image Problem

Credit unions are enjoying a surge in popularity: The assets of the average credit union have risen from roughly 150 million dollars in 2013 to 260 million dollars today, as reported by Market Business News, and credit unions in the U.S. currently boast over 100 million members. For too long the advantages credit unions offer have been overshadowed by big banks, and today many consumers are rediscovering the value of banking with local financial institutions.

However, skeptics who still see credit unions through antiquated lenses remain. In order to win over those who doubt that credit unions can fulfill their modern banking needs, an image makeover is in order. Credit unions must show that they have embraced technology while still retaining what’s always made them a great option for millions of happy members. Here’s how.

Engage, Engage, Engage

Through an omnichannel marketing approach, credit unions can engage and interact with their members on their preferred platform. They can leverage email and social media campaigns to connect with tech-savvy potential members and small businesses that are active on these channels. By directly announcing relevant updates or new services on social channels, credit unions can reach new demographic groups and prove that they understand members’ needs. But it shouldn’t stop there: Interacting with and engaging consumers is crucial for credit unions to show they’re listening too.

Credit unions can also leverage the data they get from this engagement to further power targeted and relevant marketing. In fact, 61% of consumers want their financial institutions to anticipate their needs in the same way the online retailers do, according to The Financial Brand. In addition to online engagement, credit unions can host events in their brick and mortar offices for members of the public to come in and find out about their services. This could be anything from a seasonal event or competition, to small business fairs or expos where they can engage with the local business community.

Invest In Security Measures

As more credit unions undergo digital transformation and invest in cloud technology, they need to implement the necessary security training and procedures. By coaching employees to understand how to use their platforms securely, credit unions can confidently market themselves as a secure banking option. This is of crucial importance, as the first six months of this year saw double the number of exposed records compared to 2018.

Credit unions that prioritize cybersecurity and data privacy compliance ensure security-concerned members know that their finances are in safe hands. These changes also transform their dated image into one of a secure, tech-savvy institution. With many credit unions currently leading the way in terms of data security, it’s not only possible to keep member data secure – it’s essential.

Prioritize Member Retention

While fixing their image in the eyes of target members is vital, credit unions shouldn’t underestimate the potential for existing members to help reinvigorate public perception. The happier credit union members are, the more likely they are to tell their friends and family about their positive experiences and build up brand image.

By fulfilling and then surpassing member expectations, credit unions can gain great publicity through word-of-mouth and online reviews. In order to retain as many members as possible, credit unions can identify members that are in danger of leaving and start re-engagement campaigns that strengthen relationships and make them feel valued.

Maintain the Personal Touch

One of the most attractive features of credit unions has historically been their ability to deliver a personalized, local banking experience thanks to their community presence. In fact, according to a recent Harris Poll study, most consumers (58%) prefer to deal with local and regional financial institutions over big banks. Credit unions shouldn’t lose sight of the value of this in their efforts to craft a more modern image that competes with bigger financial institutions. They can even bring this message into the digital age.

By using methods such as personalized email and social media marketing, and a hyperlocal content marketing strategy, credit unions can build their image as a modern, trustworthy institution that stands by its members. They can also empower their in-branch team to deliver personal member service by using the member’s name and offering relevant products – a highly valued feature of community financial institutions.

Credit unions have flexibility on their side, so they shouldn’t be afraid of creating one-of-a-kind solutions to cater to individual member needs. Consumers want to engage with brands that share their own values and ethics, so it’s vital for credit unions to portray themselves as credible institutions that look after their members.

Competing with the big banks on digital offerings and a range of services is always going to be a mammoth task for credit unions. But as nationwide membership grows, they’re proving themselves to be more valuable than ever on credentials that they have always possessed: Providing a local, personalized and flexible service. By communicating what has always made credit unions attractive in a modern way, these local institutions can convince remaining skeptics that they have entered the modern age and are ready to serve their financial needs.

Drew Sementa is Founder and CEO of Tidal Commerce, a merchant solutions and payment processing company in Oak Brook, Ill.