Key Strategies to Drive Positive Member Experiences During COVID-19

Recent weeks have proven to be extremely challenging for the financial industry. Encountering issues from processing delays due to a mix of temporary and permanent branch closures, many credit union leaders are finding themselves inundated with member inquiries and feeling overwhelmed. As institutions continue to navigate and adjust to the “new normal,” they must be conscious of the impact COVID-19 has had on their members and their families, and business account holders.

Most importantly, it’s imperative they have a plan in place to help guide and support members along the way. The good news is, help is out there. In many cases, credit unions can quickly add a range of new payment options – from mobile apps and online portals, to text-to-pay and IVR – to accept and process payments more easily, in a way that matches the personal preferences of their members. Often, unprecedented times call for unprecedented measures.

The Problem

The pandemic has significantly shifted consumer spending habits and payments preferences. Many are spending less on dining and leisure and saving what little they can for emergencies. Additionally, the vast majority of the population has been forced to adhere to online ordering, causing the volume of digital transactions to skyrocket. While millions have transitioned to predominately using online and mobile banking solutions, merchants on the other hand are leaning on their local banks and credit unions to provide options and answers to fulfill their urgent business continuity plans.

As you can imagine, all parties want answers, direction and clarity. What can credit unions do to help members alleviate anxiety, stress and uncertainty?

Devise a strategy.

Now more than ever, communication and the overall member experience matters. According to a report issued by McKinsey, “Managing a Customer-Experience Transformation in Banking,” positive customer experiences not only strengthen customer loyalty but also help reduce costs, improve overall employee morale and boost overall revenues. While it may sound as easy as an e-blast and a friendly smile, there are several components tied to delivering an exceptional experience – one of them being technology, or more specifically, the right technology.

Before COVID-19, credit unions across the nation were working to integrate digital technology into every aspect of their business. While some have succeeded, many were still determining the best processes, partners and strategies for deployment – with cost control and minimal service disruption both top-of-mind. Not only does a digital transformation require a cultural shift, it also requires a significant amount of time, budget and energy to orchestrate.

Today, many members no longer have the option to visit a brick and mortar location, access their services and sit with a specialist – they must access everything remotely. Although the end goal to seamlessly integrate technology throughout the member’s journey remains, it’s now quickly forced, requiring a more rapid tech implementation process and putting at risk the seamless experience it normally would garner along the way.

Does this make or break your credit union’s ability to provide an exceptional member experience right now? Not necessarily. Members today are yearning for transparency, options and support as they, too, navigate the plethora of new products and services they now have to utilize in their day-to-day lives.

To help credit unions mitigate the challenges affiliated with COVID-19, we compiled our top four best practices to help you better serve your members.

• With more demand, offer more options: At the point of pain, members all have their preferences for the most comfortable, friction-free way to pay. While many credit unions have identified partners and expanded their digital payment capabilities, most still do not have the full arsenal to accept payments by IVR/automated phone menu, SMS/text to pay, online web portal and mobile app. This last option, in particular, is more absent, with a reliance on mobile web to access the online portal – but the experience often falls short. To further ensure timely repayments at this time, it is best to have reliable options across the board.
• Maintain that personal touch: Credit unions are known to provide a high level of personal service, which is challenging to sustain during a crisis. Anxiety is at an all-time high, while patience is at an all-time low. And every “essential business” is struggling with onsite staffing and support. An increase in digital payment, repayment and deposit options, coupled with well-managed digital communications to members, can help sustain that service level members have come to appreciate and expect.
• Provide better lending and faster funding: Credit union members still need access to funding options during this critical time. To better mitigate the current stigma on “dirty money” and paper checks, there are numerous ways credit unions can deploy online loan applications quickly, and instantly fund them – pushing the funds, often available for use within minutes, to eligible debit and prepaid cards. Credit unions can also tap the funding networks that are available 24/7/365 and make it a seamless aspect of their own “digital lobby,” reducing the need for face-to-face interactions benefiting both the employees and members alike.
• Establish alternative solutions: Credit unions need to proactively engage members, maintain open lines of communication, and consider refund alternatives for future services to prevent chargebacks. Card brands have yet to change any rules relating to dispute resolution at this time, so credit unions must act as if traditional guidelines apply. The current environment will produce more unusual and anomalous transaction activity for members, so managing issues with a balance of empathy and scrutiny are critical.

Regardless of where your credit union may be in the process, one thing remains certain – credit unions must continue to serve members from their core, remain transparent and provide solutions to help ease the challenges and hardships members are experiencing. With the right partners, credit unions can accelerate their digital transformation without disruption, delivering a brand experience that makes dollars and sense, all around.

Susan Perlmutter is Chief Revenue Officer for REPAY, an Atlanta-based provider of integrated payment processing solutions to verticals, banks and credit unions that have specific transaction processing needs.