How Credit Unions Can Better Support Members’ Financial Fitness

This year’s National Financial Capabilities Month, celebrated in April 2024, seemed to carry extra weight as consumers and businesses around the country continue to navigate economic turbulence. Inflation, high interest rates, the resumption of student loan payments and a rising cost of living have caused many to become anxious about their financial situations. In fact, a recent CNBC survey found that 70% of adults in the U.S. said they were “very or somewhat stressed” about money.

While such a time is fraught with anxiety, it also presents an opportunity for credit unions to step up and support their members in new and impactful ways. Credit unions’ “people helping people” mindset and strong dedication to member service uniquely positions them to fill this role. However, they must first understand what types of guidance and tools would provide most value to members – as well as the best ways to communicate and deploy such resources.

Double Down on Data

To understand the resources that will resonate best, credit unions first need to have deeper knowledge of who their members are, their struggles and what financial pain points are most prominent. Gaining this insight requires strategically analyzing and leveraging data to uncover member behaviors, channel preferences, transactional patterns and key events in their journey.

Although credit unions have a wide variety of data available to them, many still struggle with how to organize it and make it actionable. More are taking steps to overcome this disconnect, including investing in cloud-based systems and resources needed to merge data silos. Artificial intelligence will provide value here, as new advancements with this technology have the power to more efficiently mine and analyze large datasets across the credit union.

The right data strategy can enable credit unions to provide members with personalized, timely financial wellness resources and tools – at scale. This may entail financial education programs for children, specialized budgeting programs, tailored loan offers, automated savings programs, purchase rewards, etc.

For example, the $8.5 billion, Beavercreek, Ohio-based Wright-Patt Credit Union (WPCU) offers a unique mix of financial tools and resources to serve members across all stages of life and with varying preferences. WPCU provides virtual webinars on topics such as preparing for college expenses and investment basics, as well as in-person seminars for first-time homeowners and understanding social security. The credit union also provides a variety of intuitive worksheets to members, such as for budget calculation, debt inventory, financial goal setting, net worth determination, debt inventory, financial planning organization and more.

Context matters, too. It’s not just about offering the relevant programs and resources, but offering them in a meaningful, pertinent way. If these tools are only available in siloes and not intuitively occurring within context of a user’s journey, impact or engagement won’t be optimized. In a digital-first world (which doesn’t mean digital-only but digital-everywhere), it is critical to present advice, suggestions and solutions within the right channels at the right times with the right messages.

Support Gig Workers

It’s not just a financially turbulent time for consumers, but small business members as well. The gig economy in particular continues to grow, yet many credit unions have yet to determine how to most effectively identify and serve this group. Gig workers face a number of financial complexities and limitations, such as retirement savings without a traditional 401(k), obtaining medical coverage and filing for taxes. As sole proprietors’ income tends to fluctuate over time, budgeting and cash flow management also present a unique challenge to this group.

Having the data strategy in place to first identify gig workers among the member base and then offering the right tools and advisory services can go a long way in better supporting this growing segment. Such efforts can create stronger member engagement and growth in deposits and loans, too.

As economic uncertainty continues to cause stress for members, credit unions can and should be the pillar of support their communities need. After all, it’s this trust and member focus that sets credit unions apart from any other type of institution. By focusing on the data, offering the right tools within the context of a digital-first journey and appealing to all member types – including gig workers – credit unions will be able to help members improve their financial fitness in good times or bad.

Erin Wynn is the Executive Director of Product Management for Digital Banking at NCR Voyix, a global provider of digital commerce solutions for the banking industry.