Credit report

Credit Unions Advance Loyalty Through Innovation

Credit union members are more loyal than most financial institution (FI) customers, but cementing that loyalty means offering innovative products and services based on new technologies.

Although members of credit unions are less likely than customers of other financial institutions to walk away if they are not offered the latest digital solutions, they still want the latest innovative offerings, according to the report “Credit Union Innovation: The Race To Meet Consumer Demand”, a collaboration between PYMNTS and PSCU.

The report shows that 31% of FI account holders would switch from their current provider to one with more advanced products and services, while only 24% of CU customers would switch for this reason.

See also: Credit unions walk a tightrope between technology adoption and personalized service

Although customers are more loyal to credit unions than to other financial institutions, the race to keep up with the latest and greatest offerings is very much on the minds of CU executives, 39% of whom move from developing new products to adding new functionality to existing services. , according to the report. New product development priorities fell to 18% in 2022 from 21% in 2021.

While UC members are less likely to tread on the lack of new products, the average UC member cites 3.23 areas of innovation that piqued their interest, down from 2.95 in 2021, according to the PYMNTS ratio – slightly higher than FI customers reporting 3.22 domains this year on average.

UC and FI customers said they were looking for expanded payment capabilities and were also concerned about data security and account fraud protection.

CU leaders are investing in innovative payments, with 60% investing in products such as P2P payments, down from 50% in 2021. Efforts in mobile banking among CU leaders have declined since 2021, however, with 60% investing in technology now. compared to 74% a year ago.

Read more: Credit unions can improve customer satisfaction

When it comes to using and interacting with accounts, 20% of all FI account holders only use digital channels, up 13% from last year. Eighteen percent of CU members only use digital and 16% only go to branches. The remaining 66% use both digital and physical branches and tend to go back and forth, according to the report.

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NEW PYMNTS DATA: HOW UTILITIES AND CONSUMER FINANCE COMPANIES CAN IMPROVE THE BILL PAYMENT EXPERIENCE

About: More than half of utilities and consumer finance companies have the ability to digitally process all monthly bill payments. The kicker? Only 12% of them do. The Digital Payments Edge, a collaboration between PYMNTS and ACI Worldwide, surveyed 207 billing and collections professionals at these companies to find out why going digital remains elusive.