ST. PETERSBURG, Fla.—A good deal on cards? That’s not enough anymore, according to one person, who said payments programs must be diversified and targeted with multiple value propositions.
And if you’re doing all that? Still not good enough, that person added, stressing that a credit union must regularly educate account-holders on those deals.
Those are the messages PSCU emphasizes to credit unions—that they must preach the benefits of their credit and debit card programs to not only sell the products to members but to keep them using the services, said Denise Stevens, SVP of product delivery and innovation at PSCU. There is simply too much competition in the payments space to do otherwise, she said.
“We are in a complex world where technology is advancing far too quickly for consumers to easily keep up. When it comes to payments, there are more choices than we can count,” said Stevens. “The payments landscape is likely to become increasingly confusing and fragmented as retailers ramp up their efforts to influence buying decisions. It is no longer enough to make the latest and greatest products available to your members.”
Easy To Relax
Stevens cautions that it can be easy for credit unions to get comfortable when a card program is producing the predicted transaction volume.
“But that is not enough,” she insisted. “As credit unions we must help our members evolve and understand how things are changing, or we run the risk of losing the transaction and engagement with those members.”
The competition to capture the consumer relationship through the buying experience continues to get tougher, especially as new players enter the market—such as Walmart Pay and Chase Pay and online lender card offers.
“Retailers are reducing friction by bringing payments, loyalty and coupons together in their closed-loop wallets,” said Stevens. “As we service the credit union member, it is critical to highlight the value of payment methods utilized on a regular basis in order to encourage credit union payment card enrollment and usage.”
Stevens said that can be accomplished through messaging via online banking, mobile apps, statement messages, ATM screen messages, direct mail and more.
“For cards, it is about great rates and rewards, and making it easy for members to redeem rewards on their mobile devices. For mobile payments, it is about convenience and helping to ensure your card is top of wallet,” Stevens said. “Credit unions need to ensure their cardholders are educated on all available payment-enabling tools that add value to the member relationship.”
No Status Quo
Stevens stressed that when it comes to payments this year, it can’t be business as usual.
“If we hope to maintain and grow member relationships and engagement, it will take careful care and feeding. And one size does not fit all,” she said. “A unique approach is required for different member segments with varying levels of awareness and interest in trying new things. Credit unions should start by considering what each segment values most, and tailor their approach based on those values. The benefits of diligently tending to your card portfolio can have far-reaching effects on member retention, growth and eventually revenue.”