AI-based lending decisions to provide enhanced member experience

Credit unions have long taken pride in building relationships that prioritize people over products, and that has set them apart from their competitors. Their intent to give the profits back to members and their willingness to always be there for those members has earned true brand loyalty. However, expectations have changed in the past few years owing to the digitization and the disruption caused in the physical world by COVID-19. The pandemic has raised the bar for prioritizing member service. More members are now navigating online banking to make loan payments, accessing a check, or applying for a loan. Customers all around the world expect uninterrupted and accessible guidance and support through call centers and online contact forms.

Despite the hurried adoption of digital solutions to meet the demands of members in the new normal, a recent study by reveals that 43% and 29% of Gen Z and Millennials showed a willingness to leave their CUs. Additionally, 53% CU members reported using credit products from their CU’s competitors. So a member may maintain a savings account at a local credit union branch because their staff is nice, but still use a competitor for a better loan offer. The point is that everyone defines good service differently. Today member experience is a lot more than friendliness.

continue reading »