Credit unions (CUs) have historically provided excellent personal service, and they’re doing better with data.
According to Jeremiah Lotz, managing vice president of digital and data at PSCU, it’s not just better data; it’s smarter data that’s helping these niche institutions boost loyalty.
“Intelligent data is the right information, for the right scenario, that creates the best experience for the consumer,” Lotz told PYMNTS, describing an optimal experience where financial institutions (FIs) and merchants provide end users with personalized, connected interactions.
That data must be gleaned, harnessed and analyzed from multiple sources — and, as Lotz said, “it takes effort to bring it all together.”
It’s no surprise, then, that the data most useful in crafting the best member experience is different than before the pandemic and the great digital shift. As Lotz noted, consumer banking behaviors have changed over the past few years — and their new habits and expectations are here to stay.
All of us have become accustomed to having access to whatever we need at our literal fingertips and on devices, from browsing for and buying goods to managing our daily finances.
“There are now the expectations that my financial services companies, including credit unions, will pull the data together to give me the right experience,” Lotz said.
Ready, Willing and Able to Switch
The urgency is there, as PYMNTS and PSCU research has found that younger consumers are ready, willing and able to switch to new a FI if that provider gives them a better mobile experience. FinTechs have proven adept at serving up the instant gratification that these tech-savvy individuals crave, Lotz said.
Speed matters, and so does convenience, as consumers find value in the ability to open accounts instantly and get virtual cards provisioned into digital wallets, able to be instantly wielded at the register or online.
Cryptocurrencies offer a new avenue of consideration for CUs, too, as a growing segment of the population wants to embrace the digital holdings as investments or as payment options, he said. Real-time payments also offer a challenge and opportunity.
But, as Lotz told PYMNTS, “when we talk about the fear of missing out on something new — and in this case crypto or real-time payments — the hardest part is making it safe and secure, and making sure that the consumer can trust you.”
On that last point, CUs have an inherent advantage over other providers, as they have a significant level of trust in place with their members.
“FIs are much more valued than crypto exchanges,” he said, and through FI/loyalty partnerships, “consumers can collect crypto by leveraging rewards, and cashing that in (for bitcoin and other options).”
Partnerships are the key to bringing new experiences to mobile and digital channels, said Lotz. Platforms such as PSCU can aggregate data and experiences from far-flung data sources and help CUs link up with partners to push new products and services out to members. In the meantime, the CU does not have to build it all out from scratch, instead relying on the integrations and aggregators that speed time to market.
“Ultimately, consumers are looking for credit unions to give them advice and be a trusted advisor,” Lotz told PYMNTS, “and we have the opportunities and the capabilities to do that.”
