Members will exchange data for personalization

It’s no secret consumers are increasingly seeking out personalization. They demand experiences, products and promotional offers specifically tailored to their behaviors and preferences. For credit unions, the key lies in accumulating the data to provide this personalization.

Although some consumers may be reluctant to share personal data with their credit unions, many are willing to engage in data sharing. Recent research by the Digital Banking Report found 63 percent of consumers are willing to share basic information with their financial institutions (FIs). In exchange, however, consumers want to be rewarded with personalized solutions and advice.

Consumers are even open to paying for such personalization. The research also found one in five consumers are willing to pay their FIs to better understand their finances, goals and preferences.

To gather the necessary data for those personalized offerings, credit unions need to utilize every available resource. These can include mobile apps, mobile browser activity, consumer profiles and in-branch mobile technology. Through a combination of these resources, credit unions can gather a more holistic understanding of their consumers.

While data can be a valuable asset to credit unions as they work to personalize consumer experiences, it is also valuable to fraudsters. Putting consumer data to work goes hand-in-hand with protecting that data. Consumers need to know they’re not at risk for a data breach.

Credit unions engaging in data gathering should have robust, up-to-date security measures in place to ensure consumer information is secure. These measures should include anti-virus software, firewalls, multi-factor authentication and annual Payment Card Industry Data Security Standard (PCI DSS) compliance checks. Additionally, credit unions should educate their employees and consumers about best practices to keep data protected.

Generally speaking, consumers will volunteer their data when the benefits to them are clear. They want their credit unions to offer up proactive solutions that help them achieve financial well-being and their financial goals. The responsibility lies with credit unions to fulfill these expectations.