DES MOINES, Iowa—The fast-changing financial services landscape over the next five years will present as many opportunities as it does challenges, asserts one analyst, who sees nimble CUs thriving in that environment.
Shazia Manus, CEO of The Members Group, believes that overall credit unions will be stronger in 2020, but noted that better use of data within the movement is paramount, as is greater collaboration among smaller CUs to maximize technology budgets.
Shazia Manus, CEO, The Members Group
“Those credit unions that master agility—are nimble and can pivot quickly—will thrive in this fast-moving age of uncertainly and technology disruption,” said Manus.
But Manus insisted that credit unions must “step up” their data game.
“Personalization – in product development, marketing, member service – is critical,” she said. “Yet, it won’t work without data. And data won’t work without analysis. Collaboration within the movement may be required so individual credit unions can maximize their technology budgets, and share data analytics best practices.”
Today CUs need to invest in “hyper-personalized experiences,” said Manus. This could be targeted rewards within each of the cooperative’s product lines, adding more consumer controls over product orientation and experience, or providing a mechanism for social sharing of financial history and goals across multiple platforms.
“Here again, data will be crucial to achieving the kind of deep consumer intelligence that inspires truly valuable perks and membership longevity,” said Manus. “Today’s consumers are motivated by experiences that are not only innovative and timely, but are also meaningful and personal. Credit union members may have an owner mindset, yet they still want immediate and real answers to the question ‘What’s in it for me?’ This will only increase as traditional financial brands and new entrants to the market fight to win their loyalty.”
Manus noted that desired outcomes of personalization can only be attained when the strategies—data analytics, rewards, channel positioning, consumer controls—are affordable and accessible to individual cooperatives within the movement.
“We see great potential for collaboration with experts, disruptors and visionary leaders to help in this regard,” she said. “That is why we are actively leveraging TMG’s proprietary tools, industry expertise and partnerships to make needle-moving connections between innovators and the credit unions. Ultimately TMG’s mission is to improve the financial lives of consumers. Naturally, our capabilities around payments, both traditional and emerging, are driving many of the initiatives our teams our launching in support of that mission. Introducing more credit unions to consumer-driven payment solutions that offer personalized experiences is a core driver of our everyday interactions with credit union teams.”