The Member Experience Enigma: What Do Members Really Want From Their Credit Union?

Credit unions have made tremendous progress in matching the digital experiences of leading banks. But as member expectations are increasingly shaped by what they see from tech companies and other experiences outside of financial services, they expect those same possibilities from their credit union, and the goalpost keeps getting farther away.

Much of the progress in digital experiences for financial services comes from replicating branch and call center experiences through digital channels. But to get to the next level, credit unions need to anticipate member needs and expectations outside of traditional services. By looking to tech leaders, we can identify seven key areas where member expectations are headed:

1. Transparency and Visibility

Members want transparency and visibility into their financial activities. This is wide ranging and covers many different areas. Examples might include visibility about when a card will arrive in the mail, seeing the status of a dispute in the mobile app, or clear and upfront communication about fees, account changes and financial advice. Credit unions can enhance transparency by providing real-time transaction notifications, interactive dashboards showing spending patterns and account health, and clear, jargon-free explanations of products and services. For example, Alliant Credit Union ($20.2 billion, Chicago) has implemented a user-friendly fee schedule and proactive notification system, significantly improving member satisfaction.

2. Control and Empowerment

Americans consistently report that they are living paycheck to paycheck. This is not limited to lower income people. According to a report by LendingClub, nearly half of the high-income consumers in the U.S. earning over $100,000 per year live paycheck to paycheck. What this really comes down to is a sense of control over their financial lives. Budgeting and Personal Financial Management (PFM) apps have consistently failed to attract large followings, and often require significant time and ongoing effort to manage. Credit unions can help members with open communication about their finances. Sometimes it’s as simple as communicating when a new card or checks will arrive, or clearly showing the status of a fraud investigation. AI can help in this area, providing spending and budgeting insights that adapt to member requests. Additionally, credit unions can ensure members know about the tools available to them, from card controls to financial wellness tools. This often has no immediate payoff, but results in increased member satisfaction.

3. Speed and Immediacy

In today’s fast-paced world, speed and immediacy are crucial. Members expect quick and efficient service, whether they are conducting transactions, applying for loans or seeking support. According to PwC’s “Experience is Everything” report, 70% of consumers say speed, convenience, helpful employees and friendly service are the most important elements of a positive member experience. This is an area where credit unions have made great strides, with more instant decisioning in applications and better real-time notifications. Leading financial institutions continue to push the envelope in speed, allowing faster loan applications, onboarding processes and up-to-the-minute data.

4. Consistency and Seamlessness

Members desire a consistent and seamless experience across all touchpoints. Whether interacting online, through mobile apps or in-person, the experience should be uniform and integrated. A survey by Salesforce indicated that 79% of consumers expect a consistent experience across multiple channels. Credit unions can achieve this by adopting an omnichannel approach, ensuring that all platforms are interconnected and provide the same level of service. Integration of CRM systems can help maintain consistency in member interactions and history.

5. Predicting and Anticipating

According to Gartner, 81% of marketing leaders expect to compete mostly or completely on customer experience. To truly delight members, credit unions need to predict and anticipate their needs. This involves using data to understand member behaviors and preferences, and proactively offering solutions and services. For example, leading financial institutions will know that a credit card was declined, and that a phone call may be related to that decline, saving members valuable time going through the Interactive Voice Response (IVR) phone tree.

6. Personalization and Relevancy

Perhaps there is no institution that thrives more on personal relationships than credit unions. Members want to feel that they are banking with someone who knows them and is part of their community. They appreciate services and communications that are tailored to their individual needs and circumstances. Credit unions can utilize data and new AI tools to offer personalized product recommendations, customized financial advice and targeted marketing campaigns. Personalization can extend to communication preferences, ensuring that members receive information through their preferred channels.

7. Advocacy and Advice

Members look to their credit unions for advocacy and advice. They want institutions that act in their best interests and provide trustworthy financial guidance. According to the findings of a recent J.D. Power study, financial advice is “resonating more than ever” with retail bank customers, but only 42% indicate recalling that their bank provides guidance. This is an area where AI can be powerful. Credit unions can strengthen their role as advocates by offering unbiased financial advice, educational resources and support during major financial decisions. Building a reputation as a reliable advisor can enhance member loyalty and trust.

By focusing on transparency and visibility, control and empowerment, speed and immediacy, consistency and seamlessness, predicting and anticipating needs, personalization and relevancy, and advocacy and advice, credit unions can meet and exceed member expectations. Embracing these themes will not only enhance the member experience but also position credit unions as forward-thinking, member-centric institutions in the competitive financial services landscape. As member expectations continue to evolve, credit unions that proactively adapt and innovate will thrive and foster long-lasting member relationships.

Gary Singh is President of Banking, North America for Zeta, a San Francisco-based banking technology provider.