Understanding Member Value: How Credit Unions Can Enhance Accounts, Loans

The Power of Understanding Member Value

One of the biggest risks credit unions face is assuming they know what their members want without ever really asking. It’s easy to fall into the trap of using a one-size-fits-all approach, applying a cookie-cutter formula to member services and interactions. After all, these methods might have worked in the past, so why change them?

However, this mindset can lead to stagnation. The world is constantly changing, and so are consumer preferences. What was valued yesterday may not be as important today. If businesses don’t take the time to regularly question their assumptions and consider new possibilities, they risk losing relevance.

Did you know:

• 58% of banking customers cited fee transparency as a key factor in their satisfaction, and 63% of millennials are likely to switch financial institutions due to hidden fees (2023 J.D. Power).

• 62% of consumers are interested in financial wellness tools, with 54% saying they would use these tools if provided by their financial institution (2022 EY).
  
• 77% of consumers now expect real-time payment options, and there has been a 40% growth in the use of instant payment services over the past two years (2023 FIS Global).
  
• 64% of consumers prefer to bank with institutions that demonstrate a commitment to environmental and social governance principles (2023 Global Alliance for Banking on Values).
  
• 48% of banking customers expect personalized advice and services, with 66% saying they would switch banks if they did not receive personalized experiences (2023 Accenture).

Asking “what if” can feel risky. It challenges the status quo and forces credit unions to confront the possibility that their current approach might not be the best one. But this type of questioning is essential for growth and innovation.

It’s not about abandoning what works; it’s about being open to the idea that there could be something even better. This courage to question and adapt is what sets successful credit unions apart from those that struggle to keep up.

Engage with your members directly through surveys, feedback forms, or one-on-one conversations. Ask them what they value most in their banking experience. For example, when it comes to loans, some members might value a streamlined, quick approval process, even if it means slightly higher interest rates. Others might prefer the lowest interest rate possible, even if it involves more paperwork and a longer approval period. 

Similarly, with account offerings, some members might prioritize a checking account with no monthly fees and widespread ATM access, while others might prefer an account that offers rewards or cashback, even if it comes with a higher minimum balance requirement.

Whether you’re investing in advertising or not, you’re always paying for your members’ attention. Understanding what your members value is the key to earning their attention. When you tailor your accounts, loans, and services to meet their specific needs, they’re more likely to notice and engage with your credit union. 

In the end, the credit unions that thrive are those that are willing to innovate, to adapt, and to see the world through their members’ eyes. So, take the time to ask, “What if?” and let your members show you the way forward. The rewards of this approach are greater member loyalty, increased satisfaction, and sustained business growth.

Effective Branding Strategies for Credit Union Products & Services 

Watch this video for key questions and strategies to successfully brand your credit union’s products and services. Learn how to stand out, connect with members, and create a memorable brand experience.