Modern credit unions are beginning to realize that they have to start thinking outside the box and begin to offer something more for their members than just the ability to cash checks, manage their checking accounts, and take out a loan. In today’s world of remote and online banking, the ties that members have to their various financial institutions and credit unions have begun to weaken. And, with many different options available when it comes to money management and loan provision, credit unions are having to up their game and come up with a broader spectrum of offerings. One way they can do this is by pairing up with third-party organizations, such as providers of card services for credit union customers, and with external insurance providers to makes sure that they do not drown in today’s competitive marketplace.
What Is A Financial Portal Model?
The most forward-thinking financial organizations and credit unions have started to change from an institution that only offers its own services and products into a portal that grants members access to a wider selection of services and products to suit their needs but that is not necessarily provided by the credit union itself. For example, some credit unions are now offering car insurance from third-party providers, and this is just one way in which organizations can become more central to their members’ financial lives, reducing their reliance on income from net interest and fees.
Serving Financially Distressed Members
Credit unions are able to offer a unique form of assistance to those families who are struggling to make ends meet. In a recent Federal Reserve report, it was revealed that 31 percent of American adults, equating to around 76 million citizens, were just able to get by or were struggling. Almost half the population lacked sufficient money to cover an emergency expense of just $400 and would end up having to sell possessions or borrow money to pay the bills. With many people lacking life insurance, disability insurance, retirement savings, and medical insurance, it is important for modern credit unions to have a more holistic approach to finance and to offer services and products to meet the needs of the most vulnerable members.
Offering Services Which Align With Members’ Interests
Although offering a broader spectrum of financial services is key to the success of a modern credit union, it is also essential to ensure that those services and products are in alignment with the interests of the credit union’s members. Although making an income is important, the goal should never be to maximize those profits. And, credit unions are under an obligation to provide good value products at an affordable price for their members. It is also important to offer products and services that are not only in the members’ interests but that are also desirable and in demand for the benefit of both members and the credit union itself. For example, by pairing up with a provider of card services for credit union customers, it is possible to increase member satisfaction by being able to accept loan payments via debit card through an online payment portal or IVR system. It is by offering these additional services that credit unions can remain competitive and relevant even in today’s increasingly technologically driven world.
BillingTree’s card services for credit union customers can give members the convenience and streamlined payment solutions that they demand today. With a fully compliant and secure system, BillingTree makes it possible to successfully bring your credit union into the 21st century so that it meets the needs of demanding consumers.