Red carpet onboarding: Elevating member experiences in the AI era

The first 90 days in a new member’s experience are pivotal for any credit union that wants to lock in members for life. Based on our experience, 25-35% of new members—and sometimes higher—churn within their first year. A significant portion leave during this crucial onboarding window.

Today, in the era of AI, there are new opportunities to reimagine onboarding strategies to maximize long-term member engagement and loyalty. Think beyond welcome emails and static brochures; It’s time to roll out the red carpet and cement deep member connections.

During the first 90 days, members form lasting impressions about whether your credit union will deliver value, respond to their needs, and support their financial goals. Generic welcome packages don’t capture attention or offer the personalized care credit unions pride themselves on.

This last point is particularly relevant as credit unions seek to position themselves as more member-centric alternatives to banks and fintechs. According to 2024 research by J.D. Power, consumer trust in retail banks declined significantly during the previous two years. Fewer than half of bank customers surveyed said they are certain they will remain with their current bank in the next year, and among those looking to switch, 26% say it is due to a poor service experience.

For credit unions looking to capitalize on this opportunity, the importance of delivering personal and timely interactions during the onboarding phase should not be underestimated. Effective onboarding not only stops early churn, but sets the stage for a long-term relationship.

Traditional onboarding processes rely on one-size-fits-all approaches. The uncomfortable truth is that generic welcome kits or emails, broad product recommendations, and reacting to issues only after they arise don’t cement loyalty. It may be enough for some members, but ultimately, a general approach misses major opportunities to:

These gaps can leave members feeling disconnected—and disconnection often leads straight to attrition. Enter AI: today’s new technology with the transformative power to revolutionize onboarding from static processes to interactions that are personalized, real-time, proactive, and dynamic.

AI has the power to elevate onboarding from transactional to inspirational. To be clear, AI-powered doesn’t mean pushing the button on an automated onboarding workflow. In fact, integrating AI is actually designed to maximize the power of the human touch. Learning and understanding the member better in the early stages of the relationship allows the credit union’s relationship managers to build stronger connections and long-term relationships. AI can help facilitate this in three critical areas.

Members who join via different channels often have distinct needs and expectations. For instance, those who join in-branch are more likely to value face-to-face interactions and may benefit from follow-ups centered around reinforcing personal relationships.

While online members may prioritize convenience, it may actually take even more human interaction to engage these members. Insights gleaned from AI-powered data analysis can equip your team with an understanding of how to personalize this outreach. Combining meaningful personal calls with seamless digital touchpoints are a way to more deeply connect with this segment.
Indirect members acquired through partnerships with auto dealers or other channels will also require a greater degree of interaction, and education, too. A cadence of well-tailored human touches paired with digital communications can effectively introduce this segment to the credit union’s unique value proposition.

Using AI, credit unions can segment members by acquisition channel, help relationship managers understand them at an individual level, and more easily deliver a customized onboarding experience.

One of AI’s greatest strengths is its predictive capabilities. By using AI to analyze available first-party data and member behavior, a credit union can proactively initiate timely nudges and engagement opportunities that demonstrate it is in touch with their individual needs.

For example, if a member isn’t using the credit union’s checking account as their primary, a call from a branch representative can help to explain attractive product features, and propose other products based on opportunities that emerge during the conversation.

Taking proactive approaches is about demonstrating the credit union will be there to support members at the right moments. It is this sort of meaningful action that brings the credit union’s value proposition to life and reinforces its commitment to serving its members’ financial well-being.

There’s a reason personalization has become one of the top buzzwords in member experience. It is one of the most powerful strategies available right now for building deeper connection and loyalty. AI takes the concept of personalization to the next level, enabling “hyper-personalization” by analyzing granular data about demographics, behavioral patterns, and transactions.

This capability is the perfect technology partner to the credit union brand, which is built on member service. The first 90 days is the time to demonstrate it.

Is your credit union ready to quickly deliver value when a young professional opens their first savings account? AI supports more immediacy in recognizing and acting on valuable opportunities like this. It can support your credit union’s relationship managers in sending budgeting tips, highlighting cashback rewards, or informing about incentives for using the credit union’s automated savings tools.

A family that joins to finance a home might receive a follow-up call to see if they need information about home insurance options or moving services. Meanwhile, they can digitally receive tailored advice about home ownership, and a direct-mail surprise with a discount on a local family activity.

These examples don’t just “tick the boxes” on a new member workflow. They provide red-carpet experiences make members feel valued and foster a deeper emotional connection.

The first 90 days of onboarding represent a golden opportunity to differentiate and delight. It’s during this vital time that credit unions can set the expectation for red carpet member treatment that is truly special. In the era of new possibilities enabled by the powerful partnership of AI and credit union relationship managers, credit unions that embrace intelligent, member-centric onboarding will not only retain their members but inspire loyalty that lasts a lifetime.