It was once sufficient for credit unions (CUs) to lean on their reputations as being customer-centric and mission-driven. Increasingly, however, consumers need access to cutting-edge financial technologies and payment methods to win them over. Remaining competitive in the financial space today means prioritizing digital innovations such as contactless payments, mobile wallets and other touchless payment offerings. 
While these were once nice features for a credit union to offer, they are increasingly mandatory for any financial institution (FI) to offer.
In this edition of the “Credit Union Tracker®,” PYMNTS delves into members’ growing demands for touchless payment options, why investing in these features will be crucial for CUs in the near term and what these tools will mean as digital banking continues to expand.
Around the Credit Union Space
Credit unions are holding their own in a competitive environment, but FinTechs and major banks are looking for an opportunity to steal these members. Some CUs are prioritizing digital investments and new service offerings to avoid this fate. The goal is to attract high levels of member engagement and satisfaction by offering features a member could expect from a big bank, such as contactless payments, integrated services and payments choice. Partnering with a credit union service organization (CUSO) is one way for CUs to stay competitive and provide integrated, seamless connections to all things payments, according to PSCU’s senior vice president and chief product and digital officer, Denise Stevens.
CU members are generally happier with their FIs than most consumers, a recent survey found. Eighty-nine percent of CU members report overall satisfaction or high satisfaction — a rate that jumps to 96% for consumers older than 45. Most consumers also agree that CUs are less concerned with profits than looking out for their members, as opposed to big banks. Additionally, 58% of respondents preferred investing with FIs that operate locally. Technology integration is pressing and necessary to keep these members satisfied: Younger consumers care about FIs offering peer-to-peer (P2P) lending options and access to cryptocurrency investing. Thirteen percent of consumers under age 30 said P2P lending is a top factor they look for in a financial provider, and 14% of that age group said the same about cryptocurrency options.
For more on these and other stories, visit the Tracker’s News & Trends.
BECU on Meeting Member Demand for Frictionless Features and Experiences
Credit unions have long made it their mission to focus on member satisfaction, but some of the key ingredients needed to keep members satisfied have changed over the years. Access to mobile wallets, contactless payments and other digital conveniences have become more important to an increased number of CU members, making these features table stakes for CUs looking to retain member loyalty.
In this month’s Feature Story, Thomas Hobbs, director of digital payments, business and fraud products at BECU, explains how the organization has met its mission to ensure BECU’s members have access to innovative tools that ensure their satisfaction.
How CUs Are Implementing Contactless Payments and Mobile Wallets
The financial services industry has changed radically over the last 10 years as FIs of all types have had to expand their product offerings to meet consumers’ ever more technologically advanced expectations. Digital transformation has forever changed the face of business, and while some FIs have swiftly pivoted to adopt new technologies, credit unions have often had difficulty in keeping up with these developments. Credit union members’ needs and preferences are changing along with everyone else’s, however, and that means CUs must develop solutions to fulfill these needs in both the short and long term.
This month, PYMNTS Intelligence examines how mobile wallets and other touchless payments are evolving in the CU space.
About the Tracker
The “Credit Union Tracker®,” a PYMNTS and PSCU collaboration, delves into members’ growing demands for touchless payment options and why investing in these features will be crucial for CUs in the near term, as well as what these tools will mean as digital banking continues to expand.