Using embedded fintech to grow your credit union’s membership and deposits

In a world where acquiring members and retaining them is critical but hard to accomplish, using an embedded fintech approach can provide credit unions with a way to engage and activate existing members while attracting new ones.

Credit unions have long been known for their community focus, personalized service, and competitive rates. However, in today’s increasingly digital world, credit unions must leverage technology to remain competitive and attract new members. One way credit unions can achieve this is by using embedded fintech to open more accounts and grow deposits.

What is embedded fintech?

Embedded fintech refers to the integration of financial technology solutions into non-financial products or services. For credit unions, this can include using AI enabled chat bots, digital account opening and deposit switching capabilities, micro-services that fill gaps, and more. By embedding fintech solutions into their services, credit unions can offer a more convenient and personalized banking experience to their members, which can attract new members and encourage existing members to deposit more money.

Here are some ways credit unions can use embedded fintech to open more accounts and grow deposits:

  1. Use micro-services to fill gaps and optimize existing investments: For credit unions, microservices from B2B fintechs (such as specialized KYC or fraud detection) can provide a range of benefits, including the ability to rapidly deploy new services and products, improve member experience, and reduce costs.
  2. Use digital account opening: Credit unions can use fintech solutions to streamline the account opening process. By making it easy for potential members to open an account online, credit unions can attract new members and increase deposits. By using best-in-class configurable templates, credit unions can quickly provide account opening and deposit switching products for consumers and small businesses.
  3. Use AI enabled chatbots for customer support: AI Chatbots can be used to provide contextual, unbiased support through the account opening process. This can simplify the process for existing members, build trust through the application process for new members and make them more likely to complete the account opening process and deposit money.
  4. Offering community-focused products and services: Credit unions can create customized products and services that cater to the specific needs of their local community. For example, using embedded fintech approaches, they can offer checking and deposit accounts for small businesses, especially for existing members who have side hustles or are part of the gig economy. By tailoring their products and services to the needs of their community, credit unions can attract new members and deepen relationships with existing members.
  5. Leverage fintech partnerships: Credit unions can partner with fintech companies to offer a wider range of financial products and services. This can include deposit switching and funding, cross selling, and personalized loan consolidation capabilities. By leveraging fintech solutions, credit unions can compete more effectively with traditional banks and other financial institutions, which can lead to increased deposits.
  6. Use data analytics to personalize offers: Credit unions can use data analytics to understand their members’ needs and preferences. By tailoring their offers to specific segments of their membership, credit unions can increase the likelihood of members depositing more money.

Overall, by leveraging embedded fintech solutions, credit unions can open more accounts, attract new members, and increase deposits. By offering a more convenient and personalized member experience, credit unions can differentiate themselves from traditional banks and other financial institutions and attract new members who are looking for a more innovative and trusted banking experience.

If you have questions or would like to get some industry perspective as you consider any of these strategies, feel free to reach out. We’ll be happy to compare notes and share our learnings.

Philip Paul

Philip Paul

Philip Paul is the Founder and CEO of Cotribute, an award-winning fintech platform that enables profitable revenue and customer growth for credit unions and banks. An entrepreneurial executive, Philip has ... Web: Details