4 Strategies for CUs to Strengthen Member Trust and Succeed This Year

Credit unions are challenged to determine how to serve their changing member base while optimizing efficiencies and keeping up with technological advances. Even though many of the difficulties experienced in 2023 will likely linger this year, credit unions across the country are taking steps to invest in the strategies and technology necessary to better serve their members and compete.

Below are four strategies for credit unions to consider this year to secure trust and lasting relationships within their communities.

Adopt a Digital-First Mindset

Members today expect frequent, low-friction and immersive digital interactions, emphasizing the importance of connecting a member relationship across all touchpoints, from digital to ”digitized” physical experiences. Picture a scenario where a member pre-orders a cash withdrawal through their mobile app, authenticates the transaction at a kiosk or secure locker, receives physical cash and obtains a digital receipt on their phone. This is a digital-first approach that empowers members, putting them in the driver’s seat of their financial journey.

A digital-first approach calls for enhanced personalization, greater synchrony between digital and physical channels and connected experiences. Those that deploy such a model have been proven to experience greater member loyalty and engagement. Of course, executing this philosophy is easier said than done. To effectively launch a digital-first strategy, credit unions must start with the data, consider all phases of the member journey and reimagine all touchpoints.

Embrace Data-Driven Decision Making

The strategic use of data is the cornerstone of effective digital-first banking. When data is harnessed the right way, critical member behaviors and channel preferences, transactional patterns and key events in the member journey are uncovered. Such insights can then be used to narrowly tailor interactions and improve member relationships.

Strategically leveraging data can also empower credit unions to better support members with relevant financial fitness offerings – something that has never been so critical. As members continue to face inflation, loan interest rates, rising cost of living and now the resumption of student loan payments, those credit unions that are able to offer meaningful guidance and tools well be best positioned to support their communities and earn back trust. This is especially important as younger generations – millennials, Gen Z and Gen Alpha – determine where their loyalty lies.

However, such efforts are only as effective as the credit union’s ability to collect and analyze data. A proper data journey includes standing up the systems and resources the institution needs to accurately leverage data, establishing baseline metrics, identifying trends, and tracking progress and growth. It’s critical to take such steps to facilitate a digital-first banking experience that engages members in the right channels at the right time with the right messages.

Explore the Role of AI

As the industry continues to buzz with the potential of artificial intelligence, and generative AI in particular, more concrete use cases will emerge this year. For example, AI has the power to optimize efficiencies and effectively organize, mine and analyze vast amounts of available data across the enterprise. Employees will not be replaced but augmented, empowered to spend more time and focus on growth-focused member advisory and strategic activities. While not all credit unions can and should implement generative AI right away, what’s most important is defining an AI strategy based on their unique risk profile and member base.

Support Small Businesses and Gig Workers

As credit unions aim to grow, small businesses emerge as a significant opportunity. Digital-first software and services supporting small businesses within the context of digital-first banking journeys position credit unions to strengthen these relationships.

Gig work is also gaining momentum as more Gen Zers show a preference toward being their own boss, and economic difficulties force people to take extra steps to make ends meet. However, these side hustles often come with financial intricacies or limitations that go unnoticed until an issue arises, such as 1099s, lack of medical coverage or no retirement savings plans. This is a significant opportunity to step in and support these gig workers, helping them embrace work the way they want while still carving out a strong financial future. This is another area where credit unions can forge lasting trust, especially with younger generations.

Credit unions’ narrow focus on member service and commitment to their communities uniquely position them to navigate challenges and succeed. In 2024, credit unions have the opportunity to solidify and grow member trust by embracing digital-first banking, prioritizing the strategic use of data, defining strategies for new innovations such as AI and giving more focus to small business and gig worker members.

Doug Brown is the president of digital banking for NCR Voyix, a global provider of digital commerce solutions for the banking industry.