The popularity of debit cards presents an opportunity for credit unions to build member loyalty and improve their revenue growth by either offering a debit program or finding ways to enhance their current programs to better fit member needs and expectations.
The reputation built by credit unions as not-for-profit financial institutions is an important one with a great deal of significance. It means credit union members trust they will be viewed as individuals, receiving personalized services focused on their needs. To meet these expectations, a full range of financial services is required. One of the most important of these services is a credit card program designed to support members’ financial goals.
The way consumers use credit cards is changing and has been influenced by advancements in digital technology, shifting economic conditions, and concerns about rising fraud. Understanding this shifting consumer behavior can help credit unions adjust their products and services to better meet member needs.
Envisant’s knowledgeable team was instrumental in answering the North Star credit union’s questions and providing insights into new strategies that would help both their debit and credit programs grow.
How are credit union professionals like meteorologists? Both need to look out for changes in seasonal patterns. For credit unions, however, those patterns represent consumer behavior that can give insights into how to meet member needs. This holiday season’s consumer patterns show overall tightening of budgets, but with pockets of increased spending among younger generations, especially via digital channels. Meanwhile, fraud temperatures are rising and heating up the need for consumer protections.
Years of experience in collections services has shown me the importance of being proactive about member debt. Addressing potential delinquencies before they can happen fosters more financially healthy members and increases their trust in your credit union. Staying on top of debt trends can help with this goal. Below is a brief breakdown of the latest debt trends that could impact your members and practical steps your credit union can take to help.
