Author: Thompson Lee
In reality, every credit union has underserved members. That’s why it is a good thing that the financial industry seemingly has a huge boom in terms of technological advancements.
Specifically, its latest innovation has led Credit Unions to bridge the financial gap. Through the lens of data, Credit Unions can effectively make banking services accessible to underserved populations.
Simply put, help for financially vulnerable members is being prioritized as every member helps with overall success.
As every credit union member is different from another, having reliable data can surely help Credit Unions gain insight into how to meet their underserved members’ needs.
Due to the credit union industry’s exemplary customer service, it is not surprising that many look for a sure way to help each member.
Let’s see how most Credit Unions plan to use data to improve their service. Keep reading to learn more.
Data as digital tools
Through the lens of data, many Credit Unions predict that the following goals can effectively help financially vulnerable members.
- Extension of their reach to create affordable short-term loans to every member who can use them
- Having a quicker decision regarding affordability or creditworthiness online of the member
- Efficiently develop a helpful and simple digital route to allow borrowers to access services effortlessly.
- Utilizing technology to narrow down applications and make faster decisions regarding the applications of borrowers
Going digital
The harness of data for Credit Unions is believed to be highly advantageous since it is set to help in better understanding the needs of potential members.
Also, the data help Credit Unions effectively adjust their services to what is needed. Meanwhile, since technological innovation helps Credit Unions go digital, more and more have switched to innovative approaches — readymade digital application routes. They are designed to make everything easier in accepting applications.
Credit Unions vs. Large Banks and Challenger financial institutions
Credit Unions are in tough competition against large banks and challenger financial institutions for the market share of underserved communities.
The recent survey unveiled disadvantageous news for Credit Unions, presenting that younger consumers — particularly those who belong to the Generation Z and millennial age groups — trust more third-party apps, such as Venmo and PayPal, or major banks as their financial intermediaries.
Specifically, the reason for that is the advanced technology offerings and ease of access.
While the survey initially sounds like bad news for Credit Unions, it actually helped them see the reality.
Hence, proving the power of data. With that said, many have decided to also go digital to ease the gap in competition.
Final Thoughts
Indeed, the tough competition is only causing pressure on Credit Unions. Yet, it is somewhat advantageous to people because the financial industry keeps improving to effectively meet the demand of people. Another essential matter to highlight is that everyone deserves to have access to financial services, regardless of location or socioeconomic status.
Unsurprisingly, Credit Unions claim and promise to stand ready and are uniquely positioned to help anyone who may not have immediate access to financial services.
