In the financial services industry, member experience can be the greatest factor in retention and growth. For credit unions, this has significant implications: every touchpoint—digital, in-branch, or over the phone—forms part of your brand story. Marketing efforts that fail to align with real-world member experiences no longer drive results. They erode trust.
Members expect consistency, speed, and personalization at every interaction. And when expectations aren’t met, they walk. In 2024, 89% of consumers stopped doing business with a company after experiencing poor customer service (SlickText, 2025). Even more striking, 32% of customers said they would leave a brand after just one bad experience (Desk365, 2024).
Friction and underwriting
In the context of credit unions, we often discuss “member friction.” Friction refers to any obstacle or inconvenience that makes it harder for a member to interact with your organization or achieve a desired outcome. Friction might be the clunky online form that doesn’t save progress or inconsistent messaging across marketing and member services. One of the most critical examples of friction can be in the loan decisioning or underwriting process. Asking members to provide proof of income, whether by manually uploading a W-2 or clicking on a link to access their banking data, can create a jarring and trust-eroding experience. These methods are often inconvenient, unreliable, or perceived as risky. Members may worry about identity theft. They lose patience when tech integrations fail. What should be a smooth borrowing process becomes a reason to abandon the lender entirely.
This kind of friction isn’t just inconvenient—it’s costly. Financial institutions have reported losing nearly two-thirds of applicants during the onboarding process. The culprit? Lengthy procedures and excessive information requests (Hubtype, 2025).
Opportunity lies in frictionless experiences
Beyond loan origination, this same data can inform segmentation strategies, guide channel choices, and drive more personalized and relevant marketing.
In a world where members prefer as little friction as possible, experience is your brand and your most valuable marketing strategy. Credit unions that remove unnecessary barriers and deliver with clarity, speed, and trust are the ones that build loyalty and foster long-term growth. The solution lies in smarter, data-driven design. Platforms like Powerlytics use verified, third-party financial data to help credit unions streamline decisioning, without requiring members to submit income data. That means fewer manual steps, faster responses, and more trust at every touchpoint. Schedule a meeting with us to explore how our data platform can benefit your credit union.
