{"id":5242,"date":"2024-07-18T15:05:50","date_gmt":"2024-07-18T20:05:50","guid":{"rendered":"https:\/\/www.ncultheaffiliate.com\/?p=5242"},"modified":"2024-07-18T15:05:50","modified_gmt":"2024-07-18T20:05:50","slug":"to-capture-primary-financial-relationships-credit-unions-must-win-the-moments-that-matter","status":"publish","type":"post","link":"https:\/\/www.ncultheaffiliate.com\/?p=5242","title":{"rendered":"To Capture Primary Financial Relationships, Credit Unions Must Win the Moments That Matter"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.9.4″ _module_preset=”default” custom_padding=”0px|||||”][et_pb_row _builder_version=”4.9.4″ _module_preset=”default” custom_padding=”0px|||||”][et_pb_column type=”4_4″ _builder_version=”4.9.4″ _module_preset=”default”][et_pb_text _builder_version=”4.9.4″ _module_preset=”default”]<\/p>\n

By Carrie Stapp, SVP, Marketing, Velera<\/strong><\/em><\/p>\n

The market for financial services is increasingly fragmented, commoditized, transactional and competitive.<\/p>\n

At a high level, many \u2013 if not most \u2013 credit unions know how to win in this context. \"\"They know that in order to earn their members\u2019 trust, deposits and daily transactions, they must understand their behaviors, challenges and mindset. They also understand that competitive pricing and legacy product offerings are no longer enough to break through in a noisy financial marketplace. To achieve a successful member-centric strategy, credit unions must transform their business through clearly defined value propositions, strategic alignment, enhanced digital delivery, data activation, personalized products and tailored experiences, all supported with the right talent, technology and organizational culture and capabilities.<\/p>\n

The challenge for credit unions lies not in the \u201cwhy\u201d \u2013 nor even the \u201cwhat\u201d \u2013 but in the \u201chow\u201d of business transformation. Credit unions\u2019 ability to bridge the implementation gap will define their levels of success over the next few years.<\/p>\n

For the fourth consecutive year, Velera (formerly PSCU\/Co-op Solutions) has partnered with global consulting firm EY to survey how financial consumer and member behaviors, preferences and pain points have evolved. We also worked with Filene Research Institute to gain the perspective of credit union C-suite leaders, with a specific focus on understanding the tactical and operational barriers credit unions face in executing their growth strategies and achieving lasting business transformation.<\/p>\n

This year\u2019s research has identified one big shift in how thriving credit unions are approaching business transformation and\u00a06 critical areas that are barriers to transformation<\/strong>, but \u2013 with the right focus, prioritization, execution and optimization \u2013 can be\u00a0bridges to a successful future<\/strong>.<\/p>\n

Since Velera launched our groundbreaking market research in 2021, we\u2019ve uncovered several important insights. In 2021, consumers reported they wanted more digital engagement from their financial relationships. And in 2022, the research showed that fintechs had made that happen.<\/p>\n

In 2023, 45% of consumers surveyed cited engagement as the top driver of relationship primacy. For national banks and fintechs, this primacy is earned by offering interactive convenience. In contrast, we found that those respondents that name a credit union as their primary financial relationship (PFR) have, on average,\u00a0three times the number of financial relationships<\/strong>\u00a0as those that choose another type of provider as their PFR, demonstrating that credit unions don\u2019t yet offer everything their members need to run their daily financial lives.<\/p>\n

With this year\u2019s research, we found that the relative importance of interactions and relationships are diverging, as consumers conduct different types of financial activities with different institutions.\u00a0Relationship primacy is tied to where consumers hold most of their money, but interactions are where they are managing it<\/strong>.<\/p>\n

In partnership with Filene, we confirmed that in 2024, credit union leaders have a solid understanding of where the consumer mindset is today. These leaders aren\u2019t looking to reinvent the credit union value proposition, and they have a stronger sense of how to compete effectively. In fact, almost 80% of credit unions describe their current strategic footing as making \u201cstrategic gains\u201d \u2013 identifying opportunities for growth but being careful about picking the right strategy and not over-extending their resources.<\/p>\n

But implementing lasting change continues to be a challenge.\u00a0More than 3 in 4 credit union leaders surveyed (77%) say they have identified a strategy<\/strong>\u00a0and have now shifted their focus to executing on it as successfully as possible.<\/p>\n

<\/strong><\/p>\n

<\/strong><\/p>\n

Here are some of the other key findings from this year\u2019s research:<\/strong><\/p>\n

    \n
  1. Fintechs saw their Primary Financial Relationships\u00a0grow by 505% between 2021 and 2022<\/strong>. However, primacy trends have since shifted back to long term averages, as the rate of change for most institution types remained flat from 2022 to 2024.<\/li>\n<\/ol>\n

    \u00a0<\/strong><\/p>\n

      \n
    1. The top benefits<\/strong>consumers seek in a financial provider\u00a0include: convenience (65%), customer service (65%) and the ability to help them reach their financial goals (63%)<\/strong>.<\/li>\n<\/ol>\n

       <\/p>\n

        \n
      1. As a member\u2019s financial wellness improves, the level of\u00a0importance their primary relationship has on their next purchase decision increases<\/strong>. Nearly 60% of consumers in the top three financial wellness stages turn to their PFR for their next purchase decision.<\/li>\n<\/ol>\n

         <\/p>\n

          \n
        1. National banks and fintechs are leading the way with\u00a0consolidating relationships and interactions for consumers<\/strong>. By doing so, these providers have increased the longevity of these relationships as well as enhanced loyalty.<\/li>\n<\/ol>\n

           <\/p>\n

            \n
          1. Growth-oriented credit unions are\u00a05x more likely to emphasize “strong internal alignment and culture” as their top priority<\/strong>.<\/li>\n<\/ol>\n

             <\/p>\n

            Credit unions are not short on strategic vision, ideas for innovation and growth, or data. But to bridge the implementation gap, they need to turn their gaze inward, and commit to focused investment in people, process and technology.<\/p>\n

            Fortunately, credit unions don\u2019t have to go it alone. Trusted partners are here to provide much of the technology, support, strategy guidance and digital payments ecosystem to enable credit unions to take this next step in their evolution.<\/p>\n

            The time has come to deliver on the promise of the credit union value proposition.<\/p>\n

            -####-<\/p>\n

            [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n ","protected":false},"excerpt":{"rendered":"

            [et_pb_section fb_built=”1″ _builder_version=”4.9.4″ _module_preset=”default” custom_padding=”0px|||||”][et_pb_row _builder_version=”4.9.4″ _module_preset=”default” custom_padding=”0px|||||”][et_pb_column type=”4_4″ _builder_version=”4.9.4″ _module_preset=”default”][et_pb_text _builder_version=”4.9.4″ _module_preset=”default”] By Carrie Stapp, SVP, Marketing, Velera The market for financial services is increasingly fragmented, commoditized, transactional and competitive. At a high level, many \u2013 if not most \u2013 credit unions know how to win in this context. They know that in order […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/posts\/5242"}],"collection":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5242"}],"version-history":[{"count":0,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/posts\/5242\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}