By Rhiannon Stone
Twenty-first century technological innovations have revolutionized the ways and means by which financial institutions and consumers interact. From mobile apps to chatbots, consumers have more available channels than ever to solicit information and conduct financial transactions.
However, countless financial institutions fail to effectively connect and communicate with consumers by misinterpreting their needs and implementing technologies that deem ineffective. Ultimately, many consumers are left with more questions than answers.
This gap provides credit unions with a real opportunity to attract consumers by highlighting their core competencies that fill this very real communication void. Therefore, when discussing the benefits of credit unions to potential members, credit unions should keep the following concepts top of mind:
Consumers are insisting to have their financial plans tailored to their individual needs. No longer does the one-size-fits-all financial solution satisfy 21stcentury consumers. According to the 2019 Accenture Global Financial Services Consumer Study, “consumers increasingly want a fully personalized offering from their financial providers.” In fact, the study found that “one in two consumers indicated an interest in personalized financial advice from banks that is shaped by their personal circumstances — including analysis of spending habits and advice on how to manage money.”
Whether it’s college graduates paying off student debt or seniors looking to finally retire, credit unions can be the financial institutions that craft tailored financial solutions for its members.
At all times, credit unions should be striving to simplify information for their members. The knowledge threshold necessary to truly comprehend the complexity of financial instruments and transactions is extremely high. Therefore, by supplying simplified information, members will be able to grow their financial acumen as well as trust that their credit union is putting them in the best position possible to make educated financial decisions.
As technology has progressed, consumers have gained access to information at lighting speed. This immediacy expectation has permeated most industries, including the financial industry. Credit unions must always keep in perspective that some information simply cannot be given the proper context without further explanation such as data security and multifaceted loan terminology.
Consequently, credit unions should be constantly analyzing what information will require further explanation and what questions members will have about said information.
Fortunately, credit unions are situated well to communicate the challenges that come with satisfying members’ immediacy requirement as well as why some information requires more time to thoroughly explain.
Growing Member Base
Credit unions can grow their member base by highlighting their core competencies that resonate in the information age. Consumers demand personalized solutions that identify their obstacles and plot a path forward to resolve present and future financial issues. The good news is that credit unions are optimally positioned to satisfy consumers’ personalization demands.
As financial information continues to grow in complexity, credit unions should also attempt to simplify as much information as possible, better positioning members to make informed decisions. Lastly, credit unions must understand consumers’ calls for immediate financial information and decipher the most effective ways to communicate the nuances underlying the data and the need for a bigger conversation about members’ financial positions.
Overall, by understanding the above societal trends, credit unions will be better positioned to communicate their core competencies to potential members, resulting in increased member growth and long-term prosperity.
Rhiannon Stone is Chief Operations Officer at EPL, Inc. For info: www.eplinc.com.