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2023 Credit Union Trends to Watch

Posted on March 13, 2023 at 8:00 am.

Credit unions are a great resource for those looking to save money on banking services while also making a positive impact on the local community. As we move further into the decade, it’s important to stay up to date on the trends in credit unions that will shape the industry in 2023.

In this article, you’ll learn more about what’s expected in 2023, from how technology is transforming credit union services to how different segments of society are being targeted for membership.

Digital Banking Continues to Top the List of 2023 Credit Union Trends

Digital credit union trends are still going strong in 2023. As things tighten up and many people prepare for a forecasted recession, the need for cost-effective solutions and banking services will only continue to stay relevant.

In 2021, 41% of U.S. retail banking consumers were classified as “digital-only” – and that means making sure your credit union’s online presence is optimized will be the future of a significant portion of your business.

Credit unions have grown, in large part, due to their strategies of reaching out into the less connected regions and communities that big banks were neglecting. And as credit unions are often owned by their members, the statistic above shows us exactly how important it is to start meeting your members in the digital spaces they spend most of their time in today.

Credit union members are looking for digital touchpoints in all of their product and service offerings, from web loan applications to trial balance, online self-service forms, online courtesy pay, and online access to their banking statements.

This also includes customer service discussions and other person-to-person interactions – members are looking for digital-first communication as well. As you are working through

your 2023 goals and strategies, it’s important to take inventory of exactly how much of your services exist in an online or self-service capacity. These will be increasingly appealing to younger members and prospects.

Credit Union Industry Trends and Market Shifts

There are several 2023 credit union trends that stem from market conditions and other related industry expectations and their biggest concerns for this year. Some of those concerns include fraud, labor shortages, and collections. Let’s break these down.

Fraud is a threat that affects every industry and business right now. And since the financial industry is one of the most frequently affected, it’s important that your digital transformation strategy doesn’t invite in more opportunities for fraudsters to get to your members’ account information and finances.

One of the best things you can do to combat fraud attempts is to ensure that two-factor and multi-factor authentication are being used by all members, staff, and vendors your credit union does any work with.

Labor shortages are in effect for different industries in different ways – the unpredictable landscape has created more uncertainty about financial health for people and for businesses in the coming year. If your credit unions are being affected by these shortages, we would recommend reaching out to vendors and other third parties that are offering solutions for the digitization of services and remote work solutions.

These unstable conditions that may or may not contribute to a coming recession will also very likely have an effect on collections of late and other default payments. And since many of your members are already aware of the missed payment, only about 1 in 100 collections calls even gets answered.

Because of this, many CU experts recommend sharing collections notices via email or text, because it lowers the level of engagement for your member and it also saves them the embarrassment they’ll feel when they have to pick up the phone and talk to another staff member at their credit union who also now knows they’re behind on things at the moment.

And digital collections operations will also be crucial as times get tighter since this year is also likely to see continued labor shortages – with an increase in collections instances and decreased staff, your existing employees will be under a lot of stress trying to keep up with the influx.

Maintaining Relevance

Relevance is going to be another top entry in the list of 2023 credit union trends to watch. According to Fiserv, between $30 and 80 billion will be transferred from boomers and seniors to the younger Millennial and Gen Z generations in the next few decades.

And that means credit unions should start now if they are hoping to continue to attract younger members as more and more of this money becomes theirs. Right now, between 80 and 90% of these younger generations are currently banking with a major bank, rather than a large credit union or smaller local bank. Big banks have a tight hold on these demographics.

Since the pandemic, credit unions have seen what implementing good technology can do for their operations, and that trend isn’t likely to slow down as these digitally-native generations grow their market share.

This may also mean taking a good look at your credit union’s branch strategy. Transactions should not be the focus of branch staff work, but rather these teams should be trained and optimized to offer sales, service, and advice solutions for branch members.

Reducing the number of physical branches has been a hot topic over the last few years, and transforming operational costs by outsourcing certain storage and services to virtual platforms can create better momentum as we traverse these tumultuous economic times ahead.

Professional Services for your 2023 Credit Union Trends

One of the best ways to keep up with trends without changing your products or services is to lean heavily into your digital transformation.

That’s why IMSI offers professional services that include custom web development, UI scripting, batch scripting, and custom electronic forms. You can take advantage of this digital-first financial services trend that has been growing since 2020 and doesn’t look to slow any time soon.

Reach out to us today and let us know how we can help your credit union use custom digital solutions to create a better experience for your members and your employees.

Financial Wellness and Credit Unions

Posted on March 6, 2023 at 8:00 am.

Written by Devon Wilson

Two-thirds of adults in the U.S. say that money is a significant source of stress in their lives, according to the American Psychological Association. And money-related stress is more prevalent in younger adults, which means it’s time to start talking about financial wellness benefits and strategies for your credit union.

Financial wellness is a hot topic in the world of personal finance today. Financial wellness is all about ensuring you have the financial stability and security necessary to achieve your goals and live a fulfilled life. Credit unions are playing an ever-growing role in helping people reach their financial wellness goals due to their unique structure, services, and commitment to their members.

Why Credit Unions Should Lead with Financial Wellness Programs

Financial wellness is the state in which someone finds themselves with enough money available for their expenses (bills, debts, and emergencies) as well as some ability to plan for and build their financial assets for future endeavors.

Financial uncertainty is at an all-time high, and so is the general public’s distrust of big corporations and banks. So why should credit unions lean so heavily into financial wellness initiatives for their members? Because they are already perfectly positioned to do so.

Credit unions have so much more data and knowledge of the communities and individuals that they are serving, and that means your knowledge of the local financial climate is better than that of a big bank.

But it’s more than just curating a great Resources page on your credit union website. You can help your members learn how to keep up with and understand transactional data and help them find solutions to their specific financial issues.

Your members don’t want general, one-size-fits-most advice – they can get that from Google. But what you can offer them is a personalized approach to financial wellness programs, whether it’s classes that teach financial education or one-on-one meetings to help someone improve their credit score to apply for a car or home loan.

A Human Approach is Powerful

Your members are real people with real struggles. They want tailored assistance and insights that help them navigate their financial future with confidence. According to NCR, more than half of all banking members want their primary financial institutions to give them personalized financial advice.

Simply sharing links and resources with helpful information isn’t enough. Think of it like this: if everyone could learn best from a written resource, there would be no need for teachers. So, what makes teachers so valuable? It’s the human connection and the ability to break down subjects in a way that can reach students of different ages, learning capabilities, and more.

Your credit union caters to people in all types of financial situations. Like the elderly couple who own a home in the country and live simply, without much dependence on technology. But it also caters to the Gen Z college student who has almost never carried cash in her life and uses digital banking to pay all her bills. The financial wellness resources you’ll share with these two different member types can use several of the same principles, and you can humanize your approach to meet each of their needs.

Financial Wellness Can Strengthen Communities

Financial literacy isn’t just being talked about in the financial industry – it’s also a hot topic in education, from primary school to adult evening classes and college programs. You may be wondering why that is, and here’s the reason: financial wellness benefits not only individuals, but it can also strengthen communities.

Financial literacy and education for adults (regardless of their personal financial situation) helps them learn more about managing personal finances, build better futures for themselves and their children, and also allows them to give back to their communities through charity and products or services they offer through newly opened businesses!

Financial literacy is also being taught more in schools (an effort credit unions can help with if they choose to). This creates a better understanding of how financial decisions should be made over the course of a decade, a person’s life, or even generations. Basic financial education and literacy can help set teenagers and young adults up for a lifetime of success.

Creating opportunities for people to start learning about financial wellness through every stage of their lives is a great way to strengthen the personal and economic aspects of the communities you and your credit union serve.

This also helps strengthen communities by creating opportunities for people to be open and honest about their financial struggles – something that is becoming a larger part of the financial wellness movement. Mental health and work-life balance are now larger motivators than high salaries, and that means being smart with your money also has a mental and emotional component to how your members are making financial decisions, from everyday purchases to long-term investment and retirement planning.

Help Your Credit Union Members with Financial Wellness Services Powered by IMSI

Your members have all come to your credit union for different reasons and with different financial plans. They have different preferences for your financial products, services, packages, and expertise. And IMSI wants to help you meet those needs.

IMSI offers online self-service forms that help you collect the information required to fulfill member self-service requests. You can customize them and integrate them with your other online banking services.

5 Autumn Banking Trends to Follow This Year

Posted on November 1, 2022 at 8:00 am.

Written by Devon Wilson

Autumn is a season of change and preparation. The holidays are right around the corner, the summer vacations are all long since passed, and it’s time to start thinking about the new year.

For your credit union members, autumn banking trends can be cyclical – they happen every year around this time – or they can be singular: maybe some of them bought or sold a house this year since the housing market was so hot, or maybe that post-pandemic purchase they’ve been saving for finally happened.

No matter what the first big chunk of 2022 brought, we are now in that transition period from summer to winter, and it’s time to check out the latest autumn banking trends so you can inform and excite your members this season.

Prepping Holiday Finances

Typically, autumn banking trends start changing as the fervor surrounding the holidays begins to ramp up. Your members and their families start planning for their holiday expenses like those associated with gift giving, visiting family members who live out of town, and attending and preparing meals and drinks for parties and other gatherings, big and small.

7 in 10 Americans overspend during the holidays, and this trend is common among credit union members of all ages and socioeconomic statuses.

This is a great time for your credit union to offer quick tips and tricks for keeping these expenses down and creating helpful budgets for the holiday season. By helping to keep your members’ holiday finances in check, you can allow them to create positive momentum in the new year. This will also help you gain their trust as a worthy resource for sound financial advice throughout the rest of the year.

The changing seasons also mean holiday finances that include buying the necessities that come with cooler weather. Members First Credit Union shared some great insights in their fall newsletter about what to buy and what to skip this fall, steering members towards those items that will be on sale, sharing when to capitalize on the largest discounts for certain items, and much more.

Unseasonably Warm Loan Growth

Speaking of holiday finances, this year there’s an autumn banking trend that’s staying warm long after the weather has cooled and the leaves have started falling: loan growth.

According to a recent CUNA news article, the 2022 peak loan season is seeing a longer windfall than normal. Typically, loan growth tapers off heavily starting in early autumn (September, specifically). But the preliminary reports from Q2 of this year showed continued – and unseasonably extended – loan growth.

CUNA reported in September that total loans outstanding in federally insured credit unions increased by $194 billion over the year ending in the second quarter of 2022. That’s a 16.2% increase that, if the trend continues, could see credit unions hitting 20% loan growth this year. This is the fastest loan growth pace since 1985.

Increased Focus on ATM Safety

With crisp autumn days come dark autumn nights – as the days shrink and sunset comes earlier, many credit unions are urged to remind their members about key ATM safety tips.

Members should be reminded to do their transacting in the daylight whenever possible and to stick to well-lit parking areas and ATM offerings to keep themselves out of harm’s way. Sikorsky Credit Union shared a list of ATM best practices to follow, like “always bring a friend,” “Have your card ready,” and “be aware of your surroundings.” We think it’s a great autumn banking trend for your credit union to get into as well.

Autumn is also a great time to upgrade or advertise your online and mobile banking options to those members who may not be familiar with or aren’t yet using these credit union resources. Inclement weather and safety concerns are valid reasons to use these services, and they’re extra convenient for your members, too!

Discuss Your Members’ Financial Goals

Another great autumn banking trend is to offer to sit down with your members to discuss how their 2022 went financially and talk with them about what they’d like to achieve in 2023. As this year comes to a close, most adults are already aware of the financial situation they will be in when the new year starts – and they’re either content with that situation, or they will be hoping for a better start to 2023.

You can create valuable offerings and tout your latest resources and financial education services to help them start the new year off right.

Focusing on Employee-Member Relations

Because the holidays are often a time of reflection, it’s also a great time to focus on your staff and their relationships with your members. Customer service is often lacking in today’s business landscape because so much of the human experience of shopping and working through issues has been automated, it’s easy for your members to feel left out, and for your employees to feel disconnected from your member base.

Fall is a great time to reorient your employees toward your members. Focus more on building relationships and less on creating the quickest interactions possible, create avenues for member growth through this familiarity that will have them feeling like they are being cared for as more than just an account number in your computer system.

Help Your Members with Their Holiday Finances and Beyond

As you head into the holidays and the new year, your members are looking to the future and trying to figure out their holiday finances. You can help them with your expertise and your implementation of some elegant member-facing web solutions that put the power back in their hands.

IMS Integration Make a Statement software allows you to communicate with members, meet compliance requirements, and send custom credit union eStatements and eNotices to keep your members up to speed in the new year.

War in Ukraine

Many industries are wondering how far the effects of the war between Ukraine and Russia will spread. We have already seen a hike in gas prices, and the supply shortages caused by the pandemic will also compound any issues furthered by the ongoing conflict.

Many countries are cutting ties with Russia, making it difficult for them to retrieve any assets or benefits of commerce from these areas. And since Russia has already been accused of interfering in American politics, many businesses are concerned that we are about to get hit with an increasing number of cyberattacks originating from the Russians.

As far as credit union-specific dealings, the Ukrainian National Credit Union Association has partnered with its members to help send aid to those affected by the war. According to their website, “the Ukrainian American credit union movement in the United States exceeds 100,000 family memberships…our asset base has surpassed $4 billion.”

Of the trending credit union topics we are talking about in this article, this one is likely the most volatile, as the war could potentially have global repercussions regarding economic stability, and the rise of military involvement from various countries.

A recent article from the Credit Union Times talks about the issues the Ukrainians face as their towns are invaded and destroyed. There is looting and the sparse reports from the region include insights into a near-total collapse of all cashless payment options in the country. Relief efforts in the country are being debated currently to help even the playing field and allow for credit union depositors to be treated the same way bank depositors are treated.

In early March, the World Council of Credit Unions (WOCCU) and the World Foundation for Credit Unions have launched campaigns to aid Ukraine, including the creation of the Ukrainian Credit Union Displacement Fund, and many other credit union organizations have created funds that collect and disburse donations from all over the world to aid in relief efforts.

Credit unions across the world are being encouraged to help by providing monetary donations and using their platforms to help show Americans where and how they can donate through their CU memberships.

Economy, Financial Inclusion, & Fee Income

The economy is another trending credit union topic right now, and that has been the case since the pandemic began. With the huge global events that have taken place in the last few years, it’s hard not to be wary of market shifts and other economic indicators.

Many credit unions have been focused on creating opportunities to aid in the recovery from the pandemic, especially for those who live in underserved areas.

And one tactic that many credit unions have embraced is the reduction or elimination of overdraft and other complicated fee systems. These fees can actually harm credit union efforts geared toward increasing financial inclusion.

We’ve previously shared our insights that explain why the era of overdraft fees is ending. However, the discussions around these topics and the push for more financially inclusive initiatives mean that reducing or eliminating your overdraft fees is the most likely path forward. And that means your credit union will have to analyze their specific branch data to adjust their programs to account for this loss of an income stream.

The Struggles of Opening New Credit Unions

Though there are many difficult things to navigate this year, there are some trending credit union topics that center around how we can make it easier for new credit unions to open their doors.

For example, Village Financial Credit Union is a Black-led credit union that was set to open in 2019, but after several setbacks – including a global pandemic – the leaders of this enterprise are hopeful they will be able to open their doors in North Minneapolis by early 2023.

As we continue to strive for financial inclusion, it will become more important to create and look for opportunities to increase the presence of reputable credit unions in areas that are historically underserved.

Use Optimized Tools to Navigate Trends in the Credit Union Sector

Navigating trending credit union topics have long-lasting implications for your CU. And that’s why you need cutting-edge solutions that have been tailored to credit union needs.

Luckily, IMS Integration can help augment those offerings with elegant, member-facing solutions that include: Make a Statement, Online Courtesy Pay+, Online Self-Service Forms, and Trial Balance+.