What does the future hold for credit unions & fintechs?
A lot has changed for credit unions within the past two years. Many have evolved their delivery models to support more digital, remote communications while still aspiring to offer a special, personal member experience. However, achieving this level of digital prowess takes a strategy that can quickly and easily adjust to uphold specific undertakings, like paycheck protection, skip-a-pay programs, and contactless transactions. Members still require personal connection even while online and those who aren’t already acclimated to digital channels need more education, connection, and security understanding to get comfortable. So, what else has changed in the credit union world, and what does the future hold?
Credit Unions: New Innovations, Trends, and Technologies
Recently, credit unions (CUs) have adopted new communication channels, including interactive online chats and video banking. These channels have significantly improved operational efficiency–through the performance of simple tasks and member interactions–and enriched their members’ experience by providing an added layer of convenience and responsiveness.
Incredibly low-interest rates have also made an impact, forcing CUs to find other means of generating non-interest income. Many are hesitating to charge high fees for their offerings, but certain services such as NSF avoidance and credit score monitoring have proven to be viable options for producing profits. Avoiding NSF fees by allowing unlimited overdrafts is more appealing to members and will make them feel like the service fee is worth paying, while fee-based credit score monitoring is a highly sought-after service needed for day-to-day activities like applying for a credit card, loan, or renting an apartment.
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