5 Easy Ways Credit Unions Can Increase Member Loyalty

According to CUNA Mutual Group, credit unions added 4.7 million members in 2021 and expect this growth to continue into 2022¹. This growth is due, in part, to low rates and fees – but the key to growth is putting members first.

Credit Unions value relationships with their members and work to improve their lives and the communities in which they live. 

But how can a Credit Union show that they value their members? Here are five suggestions.

1. Personalize Member Offerings

BAI Banking Outlook found that just one out of three financial services organizations use customer data on a regular basis². That’s unfortunate because member data allows Credit Unions to create positive, personalized experiences.

When using member data, you will be able to:

• Send messages that resonate with members
• Adapt your organization's strategies to meet member needs
• Prompt member actions based on past actions

When members receive a personalized experience, they become engaged with your organization, which then leads to member loyalty. 

2. Use Technology

Your members want their banking experience to be fast and easy. Offering the right technology can do just that. Nothing compares to efficient, friendly interactions for increasing member loyalty. 

Some technology to consider includes:

• Online banking: This allows members to monitor their accounts, transfer money, and pay bills from the comfort of their home.
• Mobile banking: Using a mobile device to carry out financial transactions such as depositing checks or transferring money.
• Biometrics: This allows members to “sign in” using their fingerprint or palm. This technology eliminates problems such as forgotten or insecure passwords, increasing both convenience and security.
• Mobile wallet: Digitally store credit, debit, ID, and gift cards so members can make purchases using their smartphone or another smart device.
• Appointment booking platform: This allows members to book service appointments in advance. Members can avoid waiting in lines and organizations will be able to staff branches more effectively.

3. Offer Clear, Transparent Communication

If you want your members to be loyal and engaged, then you need to offer clear, transparent communication.

Remember, your members chose a credit union for their financial services because of low fees, low interest rates, and a member-centric attitude. So make sure your members know the following:

• Loan rates
• Savings account rates
• Fees
• Product offerings
• Community involvement
• Ways you are making members’ lives easier
• Anything that is changing

Make sure that your communication is clear and transparent across all platforms including your website, social media, email, and direct mailings.

You’ll also want personal, one-on-one conversations from employees to include the same clear, transparent message. When you do this, you build trust and deepen relationships with members.

4. Host Events

One of the best ways to become part of the community is to host events for the community. This will allow members to get to know employees of the credit union as well as other members. Plus, it provides you with the opportunity to give back to the community.

Consider such events as:

• Educational workshops: Home buying, budgeting, identity theft, etc.
• Shred days: Allow members to destroy private documents
• Sponsor a Day: Sponsor a day at the ballpark, a local amusement attraction, etc.
• Athletic events: 5K, fun run, golf tournament, etc.
• Holiday events: Founder’s Day, July 4th, etc.
• Luncheons
• Auctions

Be sure to promote these events to members and the community. 

5. Focus on Financial Education

A recent survey found that three out of four Americans rank their finances as the most significant source of stress³.

Because credit unions are in the business of helping their members, it makes sense to provide a financial wellness program to help members learn the information and skills needed to alleviate this stress and increase their financial health.

The Enrich financial wellness platform can help your members:

• Decrease stress
• Increase emergency savings
• Pay their credit cards in full
• Get on track with financial goals
• Contribute more to their retirement plan⁴

Enrich personalizes financial information for each member based on their unique situation and needs through tools, quizzes, videos, articles, courses, and multimedia content. They also have a proprietary financial behavior assessment, Your Money Personality, that analyzes how members feel about and deal with money. 

These ideas are simple ways to reach out and engage with members. They can be used in addition to other strategies you are already using to make your credit union more attractive to members. 

1 - https://www.americanbanker.com/creditunions/news/credit-union-membership-growing-faster-after-pandemic-slowdown

2 - https://www.bai.org/banking-strategies/article-detail/customer-journey-mapping-the-long-and-winning-road/

3 - https://www.cnbc.com/select/73-percent-of-americans-rank-finances-as-the-number-one-stress-in-life/ 

4 - https://www.enrich.org/financial-wellness-resources/financial-wellness-behavior-change-data-study