When we talk about first responders, we usually envision law enforcement, military and firefighters running toward danger as everyone else is running from it. But credit unions can be financial first responders to the dangers – and opportunities – that occur in the lives of members.
In the digital banking era, credit unions can’t afford to be reactive, given the rising competition of fintechs and neobanks, as well as traditional bank competitors. And being proactive doesn’t mean spending a ton of money to build out a stand-alone digital credit union or reorganize the entire operation.
It means showing your members you understand who they are and the products that help them fully experience financial empowerment, without it costing them an arm and a leg.
Are you a financial first responder?
A financial first responder is a credit union that sees opportunity in a constantly changing world rather than battening down the hatches and waiting for the transition to pass.
But that doesn’t negate the fact that when structural and material conditions change in the industry, it’s possible to find a reasonable proactive opportunity to secure or expand the business of current members, as well as attract new ones.
The past is the past
Until recently, credit unions weren’t exceedingly differentiated. And for many, a retail enterprise.
Credit unions competed on loan rates and account fees and rates. And perhaps, the kind of toaster you got when you opened an account.
But today, e-commerce has changed that dynamic. Now, targeting is much more sophisticated in omnichannel marketing. Delivering “shotgun” messaging is increasingly annoying to the 200 million digital natives that make up Gen X, millennials and Gen Z generations.
Underlying that desire for more personalized offers is the expectation that, given all the data credit unions have on their members, the products they provide will be better suited to their needs.
The Amazon Prime effect
Maybe this new consumer expectation for more personalized offers began with consumer first responders, like Amazon Prime. Suggestions generated from individual purchasing or rental behavior laid the groundwork for generations to expect every organization to have relational databases to help give them ideas.
E-commerce rapidly adapted to this new reality – or struggled mightily. The expectation for personalized solutions grew. It was also evident that this toothpaste wasn’t going back in the tube. Member-first digital banking is here to stay.
The opportunity for credit unions is now with BaZing
As the first fintech wave recedes, it’s an ideal opportunity for credit unions to re-examine their efforts at being financial first responders. Inflation is high and that’s hurting consumers’ buying power. Do you have services or products that can save them time or money, or protect important personal assets?
Subscription-based fee models that are value-based are at an all-time high in popularity. This provides an opportunity to offer bundled “lifestyle” oriented services that members will gladly pay to receive (most of your members are buying these individual services from other third parties). Plus, as there are revenue challenges in the future, is there a benefit driven subscription model that can supplement revenue?
Catalyst BaZing, the epitome of a financial first responder, is a rewards program that can make checking accounts more attractive to members. BaZing strengthens member engagement with the credit union and generates fee income.
BaZing benefits
Offered in conjunction with StrategyCorps, the BaZing mobile app enhances a checking program with instantaneous on-demand benefits:
- 400,000 local and online discounts from name brand retailers to help members save money on shopping, groceries, dining, travel and entertainment
- Cell phone protection that pays to replace a broken or stolen cell phone (if the cell phone bill is paid through the credit union BaZing checking account)
- Fuel rewards at participating Shell gas stations – accumulated through use of a debit card linked to the checking account
- Round-the-clock roadside assistance
- Personal identity theft protection
- …and more!
Finding and offering checking product solutions to make your credit union a financial first responder is more than a nicety; it is a necessity. With the right solution mix, every credit union can become a financial first responder. Contact Catalyst Corporate to explore the benefits of BaZing.
Gregg Early is a financial writer for StrategyCorps. His expertise includes fintech, emerging technologies, cryptocurrencies and derivatives. His work has been featured on CNBC, CNN, and Bloomberg, as well as in The New York Times and Washington Post, among others.