Increasing economic uncertainty has triggered significant changes in consumer behavior. The far-reaching effects of the pandemic’s impact on the economy have driven over 80% of consumers to adopt behavioral changes.1 These changes are a direct response to growing worries about financial stability as seen in the nearly 70% increase in consumer likelihood to purchase payment protection since 2019.2 The rising delinquency rates, particularly the spike observed in April 2023, further underscore the need for enhanced financial protection measures.3
Seeing these trends in consumer behavior and the need to help keep members protected, TruStage partnered with MeridianLink® to bring to life an integrated dynamic content capability for payment protection products. This collaboration allows credit unions utilizing TruStage payment protection products and MeridianLink Portal to provide educational content to their members directly within the loan application itself.
Bridging the knowledge gap
Payment protection education can be a powerful tool to help credit unions empower individuals with the knowledge and tools they need to help protect their financial well-being. This may help reduce risks for members and their credit unions while providing important non-interest income for credit unions. However, our research found that there was a significant gap between the number of members who would be interested in payment protection and those who recalled being offered it during their loan process.
Our 2023 Consumer Lending Preferences research found1:
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