In the not-so-distant past, the lion’s share of member engagement happened in physical spaces, where consumers and businesses would receive one-to-one support from staff.
But as the world of banking becomes increasingly digital, the opportunities to nurture member engagement are becoming more diverse and member preferences are broadening to include digital experiences.
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This leaves many credit unions wondering: How can we replicate our member engagement efforts in digital environments?
The answer is a member engagement module. If credit unions hope to meet demands for digital services in the coming years, they must take action to ensure that member engagement continues to thrive in a digital context.
Credit unions face three challenges to preserving and building on their members’ engagement:
1. Cross-selling in a digital context
Many credit unions have considerable success with their in-branch cross-selling efforts. But credit unions that attempt to stay competitive by embracing digital channels may struggle to showcase products in digital contexts where they don’t see or speak to the members directly.
Solution: customizable email marketing
Member engagement modules often let you create email campaigns to market additional services and products. You can build stronger relationships with your members through a welcome series or drip campaign, or you can engage them in other forms of email marketing.
Email marketing capabilities empower you to migrate your in-branch cross-selling efforts into the digital world so you can make connections with members in their own homes.
2. Application abandonment
To access support during an online application, members may need to book a call or visit a branch—both of which represent an obstacle to someone who has chosen an online account opening method for its convenience and speed.
Solution: automated application reminders
Member engagement modules that include remarketing functionality enable credit unions to overcome abandoned applications.
Automated reminders are essential to minimizing abandoned applications and increasing conversion rates. Member engagement modules with a remarketing system allow credit unions to automatically send an email to potential members reminding them to complete their applications.
This simple step is responsible for a 6% boost in conversion, on average.
3. Compliance and regulatory burden
Two federal laws—the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA)—require that credit unions provide consumers with notice of the reasons their application was denied.
Given that many credit unions see thousands of applications every month, this can be time-consuming and resource intensive.
Solution: an adverse action notice program
An adverse action notice program automates the process of sending adverse action notices to inform consumers why their applications were denied. This not only lets your credit union stay compliant, it also keeps consumers informed of the decision right when it happens so they’re not left waiting or wondering.
Member engagement modules that include an adverse action notice program allow you to send notices customized to the reason for application denial, whether a generic, TeleCheck, or Equifax denial.
Credit Union Magazine’s Spring 2023 issue features the 2023 Credit Union Heroes and examines CUNA-League advocacy priorities, board leadership, the impact of financial well-being efforts, fee-related compliance issues, predictions for the year ahead, and more.
