4 Common Reasons Your Members Switch Banks

 

Part of knowing how to create a successful business continuity plan for credit union member retention comes from the knowledge that we gain from studying what makes your members choose to leave your financial institution for another. So here are some common reasons why your members switch banks.

Better Data Protection

The COVID pandemic has accelerated the digitization of a lot of businesses, and that has in turn increased cybersecurity risks. That is why, in a recent study done by Morning Consult, the number one reason respondents switch banks is because they are looking for better data protection.

The easiest way to combat members switching to another bank is to incorporate facts and messaging into your mobile and online banking marketing programs. Because even if their data is safe, members want to know the particulars.

Better Customer Service

Your members have a lot more information than previous generations. If they don’t like a product or service, no matter how long they have given their patronage to a business, they shop around for better options.

This is exceptionally true when it comes to customer service. Consumers are much savvier now, so if the customer service at your location isn’t up to their standards, they likely won’t hesitate to switch banks. In fact, a study from The Ascent reported that 97.18% of respondents ranked “quality of customer service” as either “somewhat” or “very important” when deciding where they’d open a new account. And as digital offerings become more and more accessible and user-friendly, it’s only getting easier for an unsatisfied member to switch banks.

Better Digital Features

According to Banking Journal, recent data suggests that bank customers under the age of 55 are much more willing to switch banks to take advantage of better digital features and services. And 37% of customers regardless of age said they are more likely to switch banks now than they were in the past, likely due to the effects of the coronavirus pandemic in banking and other industries.

Uncertain Financial Times

Our banking situation is often based on the same feelings we have in the summertime. It sounds crazy, but think about it: if you are at your son’s baseball game or a backyard barbecue, you want to park your chair somewhere in the shade. And for as long as the shade covers you, even while the sun changes position, you stay in that spot, even if there are bigger shade spots nearby.

Your banking situation is the same: if we are in pretty stable financial times, most people are fine with not needing to switch banks because nothing is making them think about making a switch. But if we are in the middle of economic instability, like a recession, people will be more apt to shop around and consider looking into the steps it takes to switch banks.

IMS Integration Can Help Build a Strong Foundation for Your Digital Credit Union Needs

IMS Integration is here to assist you so you can better serve your members. With our professional services, you can take advantage of custom web development, UI scripting, batch scripting, and custom electronic forms.

Request a consultation today for more information about our credit union solutions.


4 Takeaways from ‘Digital-First Banking Trends Report’

 

SilverCloud recently published the “Digital-First Banking Trends Report” (you can download the free report here). There is a ton of insightful information in the report, so we wanted to go through a few of the best takeaways, which include mobile banking, technology adoption, and more.

Customer Self-Service

SilverCloud reports that the average daily use of knowledge bases on bank and credit union websites increased by 69% year over year from March 2020 to March 2021. Current and future credit union members will now expect to be able to find banking solutions, applications, and answers to their questions through your website or mobile offerings.

A list of some of the most common topics in self-service offerings include transfers, cards, lending, hours, and appointments. IMS Integration has a number of solutions like web loan applications and online account opening that can help bolster your credit union’s self-service programs.

Mobile Banking

A lot of the self-service growth was taking place on mobile apps and platforms in the last year as well. And mobile users were doing a lot more than just checking account balances, they were looking for help with products, technology, and even just general support.

The more streamlined your credit union’s website and mobile interfaces are, the easier it is to attract and retain members. The increase in work-from-home opportunities and other remote events and meetings means that it’s becoming less convenient to have to swing by the bank or credit union to drop off a pay stub or withdraw cash. There’s even a continued rise in smart wallet use – forget paying with cash or card, many people enjoy the simplicity of paying by phone.

Chatbots

With 24-7 tech comes the need for 24/7 support. Thankfully, you don’t need to start hiring night shift chat or hotline managers to keep up with your members’ needs.

“Chatbot usage on bank and credit union websites and mobile apps increased 272% year-over-year, says SilverCloud. Their study even showed that those who used chatbots over more rudimentary search bar inquiries typed an average of 14 words and found helpful answers to mid-tier and slightly more complicated questions. Your members are no longer seeing chatbots as glorified search bars – they’re using this evolved technology to find answers to questions that normally would require a person-to-person phone call. This evolution helps increase the effectiveness of your credit union’s self-service offerings while lowering your call volumes.

IMS Integration also has a number of automation options like batch and UI scripting that can be customized to your credit union while still providing efficient solutions for your teams.

Appointment Scheduling

While walk-ins are still welcome, the ongoing coronavirus pandemic has created a high demand for more pre-scheduled appointments, up 107% from 2020, while walk-in numbers have decreased by 55%.

The following appointment types saw growth since last year: business banking, retail banking, investments, and auto loans. Only appointments for checking and savings declined – no doubt affected by the huge leaps in technology and self-service availability we mentioned above.

Keep Up with Tech Trends in Banking

IMS Integration has a large selection of online and backend solutions to help keep your credit union up to speed on the latest and greatest advancements in the banking industry. Our Corelation solutions and new Infuzion tool are making customized tech solutions look easy.

Request a consultation today for more information about our credit union solutions.


5 Benefits of Finance Automation

 

Finance automation technology can be scaled – it can be all-encompassing, or it can help your credit union increase the efficiency in some processes so your employees can spend more time serving your members. Let’s talk about the five benefits of financial automation.

Fewer Errors

When automation is done right, it creates fewer errors than manual data entry or calculation performance. But rather than replacing your staff with automation, most finance automation is meant to be guided by individuals, keeping that human touch, and then set free to perform as it should, in the background.

Higher Consistency

Every employee is different, and no matter how hard you try, each individual will handle situations and complete tasks in the way that best suits them. This is great for inclusivity, but not so great for processes that should be standardized. With finance automation, you can create greater consistency through standardization.

Increases Information Utility

When you have automated real-time data collection, you can increase information utility. This allows you and your teams to recognize patterns and address issues much sooner than if you had your employees trying to collect and aggregate this data by themselves.

Decreases Fraud Risks

We all want to believe the best in people, but even innocent mistakes can have a devastating impact on your credit union.

Fraud risks, especially those tied to online and electronic activities, are continuing to increase. And certain innocuous employee habits can leave gaps in security big enough for fraudsters and cybercriminals to take advantage of.

Finance automation, by creating greater consistency and reducing the potential for errors all while minimizing human contact with the mechanics of a standardized process, can help decrease fraud risks by limiting the number of people and the time they are involved in a process.

Saves Time

As with most automation, finance automation saves time. It saves your employees and members time when it comes to running the programs and collecting the data. It saves you and your managers time because you don’t waste so much time trying to identify what went wrong, and where, and who.  

Great Examples of Places to Implement Finance Automation

Spend Journal recently shared some finance automation opportunities, and we wanted to list a few here:

  • Payroll: If you think no one cares about a small mistake, try missing someone’s payroll check.  Automated payments, both internally and from member to credit union, are a perfect place to implement finance automation, and payroll is a great place to start. 
  • Banking Statements: IMSI’s Make a Statement service can help you with that. Create e-statements and e-notices, and even consolidate multiple statements to the same vendor automatically.

IMS Integration Wants to Help Lower Fintech Friction

IMS Integration is here to assist you so you can better serve your members. With technology solutions tailored specifically to credit unions, IMSI can offer great services that your members will love, like Skip a Pay. You can set it up for member use, for staff use, and it is fully integrated with your core system.

Request a consultation today for more information about our credit union solutions.


Ways Credit Unions Support Members

 

Credit unions are unique in that their business model is half bank, half non-profit. Sometimes, the best marketing angle is the most direct one. Here is a list of ways credit unions support members.

Best Financial Rates and Opportunities

Credit unions as non-profits typically offer better interest rates on loans, savings accounts, CDs and have better options when it comes to checking accounts. For-profit banks can’t compete on that front, but they use their marketing power to draw attention to the other products and services they offer.

Skip a Payment

As the pandemic ramped up, many financial institutions tried to help their customers by offering loan forbearance, waiving fees, and allowing struggling individuals to skip a payment. Credit unions were some of the first financial institutions to do so, in order to better support members.  

Credit unions have always been quick to waive fees for members who were struggling and Skip a Pay has been a CU-led program from the beginning.

Small Business Credit Champions

Because credit unions often serve specific geographic locations (a town, county, or rural area), they are uniquely positioned to offer support to members who run their own small businesses.

One of the many ways credit unions do this is through personal and signature loans. Potential small business owners can count on credit unions to do a more broad financial check (increasing the chances of getting the loan approved) and offer lower rates for members to get the credit they need to start or run their business.

They also offer short-term loans in ways that are much less predatory in nature than big banks and especially payday lenders.

Credit Unions are Member-Owned

The idea of being a stakeholder in something like a financial institution seems out of reach for many, but credit unions provide that opportunity to more diverse communities than any other financial institution.

As a “publicly owned” company, credit unions are more attentive to the changing needs of their community. With big banks, uniformity is often the goal. They want you to get the exact same experience whether you enter a branch in Oklahoma or in downtown New York City.

This is not so with CUs. Sure, the core values of a credit union don’t change, but the manner in which they serve their communities changes with the community’s shifts in financial literacy, tech-savviness, and so much more. Diversity doesn’t just come from the people who are the cornerstone of every credit union, it also comes in the approaches that are taken to achieve more member satisfaction.

Focus on Education

The worst feeling any customer can have is when you go into a potential transaction knowing you are vastly undereducated compared to the experts you are trying to work with. With the surge in popularity of life hacks and other “did you know” style education that people are sharing on social media to help others keep from getting scammed or duped, credit unions fit right in!

Credit unions have never wanted to hold the keys to the kingdom, they want to share them. Financial education is arguably one of the most impactful ways they support members. And now, more than ever, people are looking for helpful ways to achieve better financial health to recover what was lost in 2020.

And because education is a part of a successful member experience, credit union staff members are much more likely to take the time with their clients to help guide and educate them about their choices, rather than approaching every sales opportunity with an “upsell” mindset.

The Best Tech Solutions for Your Members

IMS Integration has many credit union solutions that can move your CU operations into the future. IMSI’s member-facing web solutions like Make a Statement, Online Courtesy Pay, Online Self Service forms, and Trial Balance are perfect for reaching new members and updating your processes.

Request a consultation today for more information about our credit union solutions.


Credit Unions in a Post-COVID World

 

March 2020 changed the world. It changed the way we move through our homes, public spaces, and workplaces. It changed how we thought about what defines an office, and a home. And it defined the way we interacted with technology and money as well. So let’s take a look at what credit unions in a post-COVID world will look like.

Credit Unions and COVID

Branches of banks and credit unions had to shut down in-person – most temporarily, but some permanently. Others reduced their hours of operation as they pivoted to remote work for some or all of their staff members. Credit union members bombarded branches with requests through phone calls, chats, and mobile apps.

So what does it look like now? According to Silvercloud, the credit union industry is focused on digital solutions:

  1. Self-service activity on bank and credit union websites increased 69% in just one year.
  2. Chatbot usage increased 272%
  3. Banking by appointment continues to grow.

Shift from Products and Services to Support

The coronavirus pandemic showed us all how much we need other people. And when it comes to businesses, like credit unions, that serve the public consumer, there’s been a distinct shift in messaging. Your credit union members don’t want a service, they want a partner. And credit unions are already uniquely positioned to work closely with their communities.

Your credit union’s message has to reflect that desire to create a meaningful relationship with your members.

One-to-One Communications

Personalization is the key to many of your future credit union offerings. We’ve discussed this and the optimization of your digital member experience previously.

Along with that feeling of support and partnership, credit union members are looking for a customer experience that is tailored to their needs and their financial situation. Mass marketing and blanket advertising will likely not be effective right now and in the near future.

Credit union staff members can call, text, and email members with answers to questions, suggestions for products and services, and actionable correspondence. And the methods of communication need to be user-friendly and streamlined because digital customers are abandoning business models that don’t innovate and improve the end-user experience.

Think Digital

The Credit Union Times had this to say about the future:

“Many credit unions still do business like the industry did in 1985. We pride ourselves on our services, but by service we mean personal, face-to-face service – not a digital experience. We have been making decisions based on this service model and COVID showed us that this thinking is flawed.”

While our industry is heavily based on regulation and process control, there are still lots of ways you can use technology to make your operations more modern, more efficient, and safer than past practices.

Overall Takeaways

The future of banking is digital. And that means keeping and refining the new technological pivots we made as a result of the pandemic. To capture and retain members, credit unions will have to focus on new and innovative ways to offer their products and services and offer them through websites and mobile apps.

Plan for the Future with IMS Integration

IMS Integration has many credit union solutions that can move your CU operations into the future. IMSI’s member-facing web solutions like Make a Statement, Online Courtesy Pay, Online Self Service forms, and Trial Balance are perfect for reaching new members and updating your processes.

Request a consultation today for more information about our credit union solutions.

 


Credit Union Leadership & Innovation in 2021 and Beyond

 

Innovation is often seen through the lens of cutting-edge technology, but the cornerstone of anything innovative is the creativity to start or improve existing ideas and processes. And credit unions across the U.S. were able to grow their membership by 2.8% between year-end 2019 and September 2020. Far from the perception of antiquity that seems to stick to them, credit union leadership and innovation are paving the way to a bright future.

Fostering Creativity through Leadership

If innovation stems from creativity, you need creative leaders in your credit union. The role of a leader is said to account for 67% of the influence in determining if the organization will be creative.

But how does a leader foster creativity? In short, you foster an environment where creativity can thrive. Your leaders should be trained in creativity methods – prioritize the idea of showing your teams that creative ideas are more than just encouraged, they are tested and executed. Creating a space that allows for feedback and testing on new ideas shows your managers and employees that they have the power to affect change on every level. And once your staff feels like they can be vocal, they’ll continue to contribute to those conversations.

Spearhead a Competition

Sometimes, you can find creativity when you think outside the box. Many companies, large corporations with even larger social media followings, often run contests to drum up creative taglines or content ideas. You can do that within your own teams, too.

Rather than simply relying on your marketing team to shoulder all creative burdens, invite other departments and create a friendly competition out of creating a new logo, tagline, or advertising campaign. Idea-based competitions can take many forms and garner surprising results.

Don’t Give Up

This embracing of creative ideas requires a fair amount of buy-in, as well. When you take on these new ideas, you have to keep them in place. Most new programs need time to be implemented, and then understood and accepted. This is especially true if your new process also involves your members.

Investing in innovative ideas means investing in the time it takes to see if the change will net a positive outcome.

Creative Problem-Solving Process

Practice makes perfect, and CUManagement offers a 4-step creative problem-solving process:

  1. Clarify the problem
  2. Generate ideas. The more, the better.
  3. Develop solutions from the best of your ideas.
  4. Plan for action.

Once you’ve created a process that works for you and your teams, you can build on these 4 steps and tailor it to give you the best outcomes.

Embrace Failure

Some of your innovative ideas will fail. It’s inevitable. And how you and your team leaders handle that is paramount to fostering a culture of innovation.

When those failures come, it’s important to practice humility and forward-thinking. According to Meistertask, when team members consider their boss a humble leader, this creates “psychological capital,” which increases feelings of hope, optimism, and resilience.

Like any team effort, focusing on solutions and adjustments over blaming or apologizing allows for growth and continued momentum.

Professional Services for Innovative Credit Unions

IMS Integration knows credit unions from the ground up. We have a range of professional services that are customized to you and your credit union. From custom web development, to UI and batch scripting, to custom electronic forms, IMSI can help you implement innovative solutions that will better serve your members and create opportunities for your business.

Request a consultation today for more information about our credit union solutions.


Tips for Improving Credit Union Member Retention

 

Acquiring a new credit union member typically costs between $400 and $700, according to CU 2.0. Depending on different estimates, it takes about 2 years for a banking customer to generate enough revenue for your financial institution to cover that initial cost. And with something like 40% of new customers will churn before the institution makes that money back.

Let’s dive into some tips for improving credit union member retention.

Continue the Relationship

Credit union retention isn’t helped by new member acquisition. Once you’ve wowed a prospective member into joining your CU, it is not the time to pump the breaks on your communication with them.

One of the most crucial ways to improve credit union member retention is to continue the relationship you started. There are tons of ways to accomplish this. You can set up automated email sequences to trigger when members take certain actions – remember that every email doesn’t have to be sales-y. You can share knowledge, educational opportunities, and other worthwhile insights with members to remind them that you are their financial partner, not just a financial service.

Engagement Fosters Retention

This communication doesn’t have to be one-sided: give your members lots of chances to participate in the conversation, too.

Keeping in touch through your members’ life and family changes can encourage them to reach out more readily when they have new and evolving financial needs. Meet them where they are: in the community, on social media, on your website. And be sure to build engagement into your brand’s communications across platforms.

Another great way to foster engagement is by offering surveys. Today’s consumer is very adamant about using their voice to promote the brands they love, and to speak up and advocate for changes they wish to see in a brand.  

Stay Competitive – Especially with Your Technology

Credit unions are no longer the dinosaurs of fintech – they are bringing targeted IT solutions and online offerings that rival big banks. Now more than ever, your member retention depends on the accessibility and user-friendliness of your online products and services.

Update your website and its interfaces. Make sure you promote your online services in easy and convenient formats. Start building a cache of resources – video, written content, reports, and more – that can point members in the right direction when they don’t want to speak to a representative over the phone. And make sure you have great chat capabilities – if it’s not well-done, it can cost you members.

Offer Customization Where It Makes Sense

Big banks can offer more standard services than most credit unions can, but in today’s digital age, people are looking for options. Customization is no longer a preference, it’s a necessity for your members.

This is one of many areas where credit unions’ small business size is advantageous. “People often choose credit unions because these member-owned financial institutions offer more customized products based on member interests,” according to Jrni. This is a perfect opportunity for you to put those surveys we previously mentioned to work!

Consider Online Appointment Booking and Queue Management

Some of the best tech solutions expanded by the COVID-19 pandemic are online booking and queues. Many restaurant and other service-based businesses incorporated online booking and queues into their websites. The pandemic showed us there are better ways to do things.

Having a queue management system allows your members to see why they aren’t being assisted right away, and how long they’ll be waiting for that assistance to reach them. This does two big things: it gives them expectations – which results in less frustration and confusion – and it also allows them some agency. They can rejoin the queue later if it’s too long or if they will be busy before a credit union employee can help them.

Expand Your Credit Union’s Digital Reach

IMS Integration can help improve your credit union online offerings, starting with web loan applications. IMSI’s online loan applications are designed to incorporate your credit union brand and image, and can be designed to collect as much information as you need. We also offer a variety of custom electronic forms, perfect for reaching new members and updating your processes.

Request a consultation today for more information about our credit union solutions.


Tips for Re-Evaluating Disaster Recovery Post-COVID

 

Disaster recovery planning is an essential part of every business. But what happens when a disaster strikes that is not only bigger than anything you ever needed to feasibly plan for? And what happens when the disaster is felt on a global scale? Let’s discuss how the COVID-19 pandemic changed the way we think about business continuity.

Here are some tips for re-evaluating credit union disaster recovery post-COVID.

Evaluate for Gaps in Your Plan

CUInsight shared some great lessons learned from the pandemic, like identifying gaps in your disaster recovery plans. As your business continuity plan ages, it’s vital to evaluate and identify gaps that have formed in your plans. The example they use includes the idea that remote work was likely a small facet of your BCP before the pandemic, but that caveat comes with a lot of gaps.

These gaps include making sure you have a supported and tested VPN that can do the heavy lifting you need when your workforce has to perform their duties remotely. That also means making sure all employees have their own laptops and other required technology in their home or remote workspace.

Another gap you may need to fill in the future is the idea that, while many businesses can operate fully remotely, your credit union may need to identify and understand which employees need to work part-time or full-time in-house. You could create hard and fast rules, or just outline general expectations from different departments or work areas.

Prioritize Communication

Communication was a unique challenge during the pandemic, but having to shift or restore communication channels is not a new idea in the world of disaster recovery. Your employees need to know where insights and directives will come from if primary communication lines are disrupted.

Likewise, your members, vendors, and other outside collaborators will also need to be able to easily find updates on the state of your business, whether that is a messaging system in online banking portals, additional website landing pages dedicated to sharing updates, or even social media channels. You want to make sure your credit union has a clear and consistent plan for sharing changes with the people you are normally interacting with.

Increase Cybersecurity Disaster Recovery

The word “disaster” often calls to mind a natural disaster – hurricane, tornado, things like that. But cybersecurity is becoming increasingly critical, as more and more business and personal transactions are taking place online.

Cybercriminals never stop evolving, and your business continuity plan for dealing with a cyber threat shouldn’t either. Another layer of protection you might want to consider for your credit union disaster recovery is cyber insurance – but be careful, not all insurance policies are created equal so you’ll want to do some good research before settling on any solutions.

Prep for Future Pandemics

As COVID cases recede in the United States, it’s easy to imagine that this pandemic was one-and-done. Unfortunately, new strains are being discovered, and other countries around the globe are facing a myriad of increasing and decreasing case counts as areas reopen and then close again. Consider evaluating or amending sick leave policies and protocols for any future outbreaks, COVID or otherwise.

Similarly, consider retaining and updating any communication channels you have in place for spreading legal and other regulatory changes. The last thing you want is for your credit union to be non-compliant with current laws, regulations, and ordinances pertaining to the pandemic.

And lastly, remember this: flexibility in policy doesn’t mean the policy is no good. Anticipate that there will be exceptions to the rules and plans you set forth, and come up with strategies to handle them fairly and as transparently as possible.

Upgrade Your Credit Union Disaster Recovery

IMS Integration offers a range of professional services – customized to you. From custom web development to UI and Batch scripting, our team is here to make sure you never miss a beat.

Request a consultation today for more information about our credit union solutions.


Big Moves in Mobile Banking

 

Mobile banking, a feature that’s been around for years, has suddenly become a primary means for credit union members to carry out as much of their financial activity as possible.

Let’s take a look at how mobile banking is succeeding – and the areas that need some work.

Winning Features from Top CUs

Nerd Wallet recently shared a list of the 6 Best Banks and Credit Unions for Mobile Banking, and here are the top tools each is using to entice customers and enhance their mobile offerings:

  •  Tools for managing and increasing savings
  • High interest rate on savings
  • Generous ATM fee reimbursements
  • Advanced mobile app security
  • Wide branch access
  • High daily limit for depositing checks

This is a great cross-section of the types of features mobile banking customers are coming to expect.

Balance Preview & Other Communication Features

Balance preview is a successful feature Alliant Credit Union implemented that allows members to check their balances quickly without logging in.

More transparent communication options are going to be big draws for mobile banking apps as more and more people move away from doing business in physical credit union locations and adopt a more mobile-forward approach on a permanent basis.

Communication features like messaging and chats that connect members to customer service representatives are also great features for any mobile banking app. This allows some AI or one-to-one interactions to help your customers navigate functionality or update issues and answer general information questions.

Mobile Bill Pay Is Mutually Beneficial

Online and mobile bill pay is a great process that mutually benefits credit unions and their members. Automating payments means peace of mind and one less thing to worry about for members, and it also means credit unions don’t have as many late payment issues to work through.

This is still an area of potential growth for many credit unions. Running targeted campaigns and offering informational materials describing the benefits and features of automatic bill pay could increase your credit union’s appeal and position as a tech-forward financial option.

Personalization

As with many mobile-based programs, mobile banking is going to evolve to become more and more customizable for users. Everyone carries out their financial responsibilities differently, so it makes sense that mobile banking is also going to benefit from this personalization.

Personalization can include a variety of transactional or banking insights based on each member’s preferences and activities, icon placement and size, photos, and personal financial goals.

Security

This personalization can also be applied to security features. The goal of the mobile banking experience should be to fit into every member’s lifestyle and preference. A tall order, but many online experiences are incorporating similar features to create the optimal experience for each user.

As for security, this could mean creating options for fast, seamless login features like fingerprint scans, face ID, push notifications for logging in and tracking activity, and other biometric-based options.

Implementing security features that can stop cyber criminals without making login and verification processes annoying and time-consuming for users is going to be the challenge here.

For Credit Unions Looking to Update Their Digital Solutions

IMS Integration has a host of great credit union solutions, including Make a Statement, Online Courtesy Pay, Online Self Service forms, and Trial Balance. Request a consultation today for more information about our credit union solutions.


Trends in Auto Lending

 

Today, credit unions are tasked with adapting older or outdated processes and services to a newer market. Add a pandemic to the mix, and you see a surge in online and mobile banking that will be hard to ignore from now on. And auto lending is no different.

Here are some trends in auto lending to watch for.

Online Car Shopping Trends

With social distancing and increased cleaning protocols, shopping for cars online has become a go-to for those in the market for a new ride.

And once they start that online car shopping process, interested individuals want to make sure they can get financing before they invest themselves emotionally in a car they won’t be able to get a loan for.

More and more, the future of auto shopping and lending is going to be virtual. And that’s why your credit union needs to be ready to embrace the following trends to capture your portion of this audience’s attention and business.

Early Loan Preapprovals

61% of new car financing happens through vehicle manufacturers and dealerships, but the majority of used car financing takes place at banks and credit unions.

This presents an opportunity for your credit union to offer auto loan pre-approvals to members through multi-channel campaigns so you can reach them before they try to finance those loans through other dealerships or financial institutions.

Increase Loan Amounts

CU Management has some compelling insights about how credit unions can play to their auto lending strengths:

“Credit unions tend to go a little bit larger in the average amount financed compared to banks and finance companies…They don’t go out the longest terms, but when you combine their sweet spot of 73 months with low interest rates, credit unions offer the most competitive product in the marketplace, particularly for prime and super-prime customers.”

By increasing loan amounts and offering competitive interest rates, you can give your members the opportunity to treat themselves to a slightly nicer car than they anticipated. You can position it as a post-pandemic opportunity at pandemic-like rates. This will be appealing to your members, especially as they watch gas, home remodel materials, and other prices go up in response to the vaccine rollout and the decreasing COVID restrictions.

Leverage Past Applications for Refinancing

Refinancing has defined many interactions between consumers and financial institutions in the last year, so why not keep that momentum going?

Credit unions can recapture a lot of business by going back through 2019 and 2020 loan applications that were lost or abandoned, and offering those applicants who are members some refinancing options.

Increase Education Efforts

The pandemic gave us all a good look at which areas of our lives – especially those tied to finances – we could use some more education in.

Credit unions are perfectly positioned to offer a wider variety of educational content geared toward different financial situations and age groups. What millennials need right now may not be the same as what Gen Xers needed at that same age. Tailoring your education to more targeted demographics can broaden your credit union’s reach while also appealing more directly to younger generations, who are always looking for more value and insight from expert brands.

Focus on Alternative Credit Data

Many millennials and Gen Zers are not going to have the traditional lines of credit that their parents and grandparents had when applying for loans. For those who are too young to have a well-rounded traditional credit score, take a look at other financial areas such as rental records, utility payments, address consistency, and employment history. 

This is a great way to capture a traditionally overlooked population looking for an auto lender.

Tech Upgrades

IMS Integration can help improve your credit union online offerings, starting with web loan applications. IMSI’s online loan applications are designed to incorporate your credit union brand and image and can be designed to collect as much information as you need.

Request a consultation today for more information about our credit union solutions.