MADISON, Wis. (5/15/14)--Filene Research Institute and seven credit unions will test a Just4You, a product that helps consumers select financial products and services while avoiding overload.
"Our research has shown that when new members are faced with an onslaught of products, their easiest decision may be to make no choice at all," said Andrew Downin, Filene innovation director. "That's bad for credit unions and bad for members. We're testing Just4You in our alpha lab to validate our hypothesis that with effective systems in place, credit unions can offer the right products to the right members."
Originally developed and tested through Filene's i3 innovation program, Just4You is rooted in research that shows too many options lead to lower probability of purchase and decreased consumer satisfaction. This prototype helps credit union employees to open accounts for members that meet their individual financial needs based on six quick questions around financial preferences and habits.
Initial tests of the Just4You prototype at $1.2 billion-asset Westerra CU, Denver, and $1.1 billion Fort Knox FCU, Radcliff, Ky., showed that it increased the percentage of new members taking three or more products to 13% from 4% during the test period. Using Just4You more than doubled the rate of credit card acquisition by new members.
Credit unions that will test the Just4You product include:
Participants commit to using the Just4You prototype to open new member accounts in at least one branch. Filene will share the quantitative and qualitative results in a key findings report later this year.