Trust is on shaky ground

Although few would argue that credit unions represent a trusted brand, trust itself is on shaky ground. Nerve-wracking bank collapses aside, financial institutions have been struggling for years to pin down precisely what it takes to maintain their customers’ confidence.

The problem may be one of definitions. Over time, trust has become less about faith in a credit union’s competency to provide good financial guidance or keep a member’s money safe. Today, trust is earned by delivering on an entirely different set of expectations—namely, being there for every financial moment, no matter how large or small.

Take everyday payments, for example. Research from Co-op Solutions shows that consumers don’t trust credit unions to have the payments tools they need. A stunning 78% of respondents to a recent survey said they don’t expect their credit union to have the digital payment options that are right for them. This is a big deal. That’s because delivering the right ecosystem of products and services to meet daily financial needs is now the most important factor to consumers when it comes to trusting a financial institution.

No surprise, competitors are capitalizing on this trust sea change. By strategically shifting away from delivering the best “one-off” financial experiences to serving the whole consumer, big tech, big banks and fintech startups are earning “PFRs”—primary financial relationships.

 

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