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Members expect a seamless digital banking experience. Shouldn’t you?

 

How credit unions can strengthen relationships with current members and differentiate themselves from other fintech options

 

You either offer digital banking or you don’t. At least that’s how your members see it. They want a seamless experience – from opening their accounts to making transactions, managing their money, even applying for a loan. And they want the ability to quickly and simply interact with their credit union, using any device, anywhere.   

From the credit union perspective, with its focus on service and relationships, these are reasonable expectations for members to have. But the actual execution can bring its own issues. For many credit unions, every additional service means an additional product they must bring to their digital solution. This introduces the potential for data fragmentation, increased costs, security risks and a member experience that is less than ideal. But with continued adoption of digital banking, getting it right is worth it to credit unions. 

According to a 2021 McKinsey report, 85% of Americans used digital payments in 2021, up from 78% in 2020. And although banks and other payment service providers may have been first to the table, there’s an opportunity for credit unions to address a pain point that banks haven’t – digital lending. 

 

Give members what they want

The trademark of credit unions has always been their relationship with members and making decisions according to the community they serve and not some inflexible collection of rules. That’s where the ability to offer digital lending can become a key strategic advantage. 

It’s not surprising that “69% of loan-seeking consumers said the approval process can be challenging.” (Source: World Retail Banking Report 2021 – Voice of the customer survey; Capgemini). Add to this the fact that “60% of customer survey respondents told us they found loan repayment terms too pricey, and 75% said that they want more accessible channels and flexible loan products.” 
By making digital lending part of their digital solution, credit unions are able to strengthen relationships with current members and differentiate themselves from other fintech options that potential members might be considering. But that still depends on the ease and simplicity of the digital experience. 


The VisiFI Digital Banking Platform includes all the digital products and services members want – including digital lending. So, there’s one seamless experience for members and one single technology platform for the credit union. From there, it also addresses the issues of data fragmentation, increased costs, security risks and member experience. 

VisiFI Digital Lending ties directly into account opening, so it shares data – avoiding repetition and data fragmentation, complexity and the need for increased security levels. 

Behind the scenes, digital lending enables the credit union to speed up the process by automating underwriting steps and approval processes through a dedicated administrative dashboard. Loans can be approved in seconds – improving service levels. 

 

And the credit union can offer additional options to members depending on other factors like what they know about the member’s past behaviors, using data collected over time, business goals and strategies for lending products and promotions. 

Above all, the ability to provide digital lending that the VisiFI Digital Banking Platform provides delivers something that is critically important – an enhanced user experience from start to finish. Members can use any device, from anywhere. They are able to use the same application and same log-in – without switching from one system to another. And they can literally enjoy a seamless experience from their financial provider of choice, which is exactly what they want.

 

The investment now will continue to bring benefits

Change is challenging, but VisiFI makes it easier with a partnership approach and people who were born and raised in the credit union industry. Like the credit unions we serve, our goals are “Innovating with Purpose.” That means having an impact on the financial industry by giving members a sustainable, efficient and secure set of financial services, but with a more convenient and personal approach. 

The potential for growth is there. While much focus has been placed on younger, more digitally-savvy groups, opportunity is growing across all demographics. According to a CO-OP white paper, even typically late adopter groups like Boomers have shown the fastest growth in digital engagement over the last year. 

By committing to a more holistically designed digital banking platform, credit unions can position themselves to become the preferred partner – especially when digital lending is part of your overall omnichannel solution. 

 
 

Mike Tomasello
Lending Product Specialist, VisiFI