Behind the Report: A Sneak Peek Into the Future of Credit Unions

Tomorrow, PYMNTS Intelligence, in collaboration with Velera, will release a groundbreaking report, “Roadmap to 2030: The Seven Strategic Planks for Credit Unions To Capture Top of Mind.”

The report will offer a detailed analysis of how credit unions (CUs) can thrive in the highly competitive and rapidly changing financial landscape. This report, based on surveys that cut across CU executives, consumers, and small to medium-sized businesses (SMBs), identifies seven strategic planks that are crucial for CUs aiming to remain relevant, competitive, and grow their memberships.

What are those seven planks? The exact details will need to wait until the report’s release. But expect key focus areas for CUs to include enhancing digital engagement and leveraging partnerships for faster innovation. “The findings underscore the importance of understanding and catering to the unique needs of small businesses and younger generations,” the report states, “as well as the necessity of investing in member activation and retention.”

The research reveals that innovation is not just a checkbox but a core mindset. The most innovative CUs, termed “top performers,” demonstrate a proactive approach to meeting member needs. These top-performing CUs are more likely to embed innovation into their product design and service delivery. The report also highlights the importance of structured innovation processes, including testing with members and staff.

The report emphasizes that CUs must make a “top of mind” outcome by offering compelling rewards for essential and ongoing expenses. The data shows a strong link between member loyalty and rewards, with a high conversion rate of memberships to primary accounts and cards to the top of wallet status.

Digital capabilities are also critical. Both consumers and SMB members are seeking more digital services and engagement options and CUs are responding, with the majority planning to innovate in self-service digital solutions within the next three years. However, gaps remain, particularly in loyalty program innovations.

To get the specific data points, you’ll need to download your copy. But among the other key findings you can expect to learn about:

• CUs are encouraged to leverage partnerships to accelerate their time to market. The report shows that top-performing CUs, especially large ones, collaborate more with third parties.
• SMBs represent a significant yet underserved market. The report shows that the overwhelming majority of them have never had contact with a CU. CUs can grow by tailoring their offerings to meet the needs of small businesses and building long-term relationships with them. “By targeting SMBs with tailored cards that combine compelling transaction management features, attractive rewards and streamlined approvals, CUs can establish lasting relationships with this highly underserved market,” the report states.
• Member retention is key, with top performers investing more in innovation and member retention and experiencing a lower member churn rate.
• Finally, the report stresses the importance of attracting younger generations, especially Gen Z, with mobile-driven engagement and seamless authentication capabilities.

This detailed analysis provides a roadmap for CUs to grow their membership, reduce churn, and stay competitive. This report will be available tomorrow at PYMNTS.com.