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Who Knows More About Your Credit Union Members?
Friday, October 20, 2017 6:45 AM

Credit unions collect a mass amount of information about their members and have the insights to guide them through their financial journeys, but according to a recent survey by financial services software company Segmint, apparently 59% of those members feel retail websites such as Netflix, Zappos and Amazon know them better than their credit union.

The survey also suggested that other kinds of financial institutions know their customers even less than credit unions do. Overall, 64% of all U.S. financial institution customers said their financial institutions don’t know them as well as retail websites do.

The survey also asked about communications from financial institutions and other vendors. They found that credit union members were sometimes more likely than other financial institution customers to call spam, ads, and direct mail for other products and services annoying. For example, 64% of credit union members said credit card company communications were annoying, compared to just 47% of big national bank customers.

The data suggested that credit unions have work to do when it comes to targeting their communications. A full 31% of credit union members said the information from their credit unions is irrelevant to them. However, more than half (54%) said they would be open to getting marketing communications from their credit unions — including ads on mobile banking apps or statement inserts — if the information were tailored to their personal financial needs.

The study suggested that credit unions that don’t follow suit could lose members. If members received personalized information about things such as credit card, mortgage or auto loan offers from a competitor 24% of credit union members said they would consider switching.

However, credit unions appear to have better chances than other financial institutions in terms of keeping members and stealing market share. According to the survey, 39% of big national bank customers, and 49% of online-only bank customers said they’d switch if another bank or credit union offered more personalized information.

Listening to customer’s transaction data could greatly help credit unions build meaningful relationships with their members while earning a greater share of their wallet.

Source: Credit Union Times