Attracting the Next Generation of Members

In today’s market, credit unions need to ensure they’re staying competitive. In a world accustomed to fast-paced interactions and transactions, members expect a similar lending experience. Today’s members demand faster decisions, greater transparency into credit decisions and the ability to prove they’re financially stable, even when their traditional credit file might imply otherwise.

In order to ensure credit unions are offering the experience and solutions members expect, some issues to consider include:

Modernizing and Digitalizing the Lending Process

One of the most significant and transformational trends in lending is the demand for the modernization and digitization of the entire lending process. As members have become more comfortable with and accustomed to digital transactions that are fast-paced, seamless and provide instant results, they are expecting a similar experience from their financial institution, especially when it comes to lending. Today’s members demand faster decisions, greater transparency into credit decisions and the ability to prove their financial stability, despite their credit score or thin credit file. While this can seem like an overwhelming endeavor for credit unions to take on, the technology and data needed to meet these growing borrower expectations and stay on par with industry trends are readily available.

Working With Members With Low or Non-Existent Credit Scores

The entire lending industry is working to achieve broader financial inclusion to better serve a diverse mix of borrowers in a way that helps meet their unique circumstances. Credit unions are realizing the value of seeing people for more than their credit score. Since each member’s circumstances are unique, an expanded view using alternative data for thin file clients is needed. This approach can potentially help millions of quality borrowers get approved for loans, including mortgages, which helps establish housing security and wealth development for underserved communities. Credit unions should leverage multiple data sets, such as traditional credit data layered with income and employment data. This approach gives credit unions a consistent and more comprehensive view of risk, and helps them make more informed decisions and potentially approve more loans.

Leverage Tools to Serve Both the Digital and Traditional Consumer

Today consumers conduct transactions in-person, over the phone and online. While each consumer has their preferred method for how to interact with their financial institution, they all have one thing in common – they all want a stress-free experience. Credit unions would be prudent to invest in solutions that help improve the borrowing experience for all members. Establishing partnerships with third-party innovators can offer automated solutions to help accelerate the lending process. Having solutions in place that serve both the digital and in-person member reduces the need for long, drawn-out paper-based processes or requests for sensitive banking login credentials. Simplifying as many steps as possible for both the financial institution and the member can drive efficiency, increase member engagement and experience, and ultimately increase revenue.

Bridge the Generational Gap

While most consumers may demand a fast, easy digital lending process, many still prefer a high-touch, personal process. The most successful institutions work to balance human touch with technology and meet member expectations of speed and convenience, all while delivering a positive member experience. This requires the right technology solutions with a variety of delivery options.

Meeting the needs of today’s member while continuing to attract new ones can be challenging, given the expectations and unique circumstances of each. Credit unions that can offer a digital lending process that attracts borrowers across all generations, regardless of their credit file, as well as provide exceptional human interaction and personal experiences, will likely see the most success.

Carly Peroutka is the Consumer Finance Sales Leader at Equifax Workforce Solutions, a St. Louis, Mo.-based provider of automated income and employment verifications.