In a world where everything is becoming more complex, today’s consumers are seeking financial services providers who can simplify their lives. Solutions that are seamless and personalised are the top choice for consumers. In fact, 63% of consumers expect personalisation as a standard of service. In this blog, Alison Donnelly talks about this expectation from our tech savvy consumers, and how credit unions can fulfil these expectations through Open Banking.
Since the second payment services directive came into play in September, Open Banking has become a hot topic of conversation and I have written a number of blogs around Open Banking to date and how it affects payment services providers. I have also spoken at numerous conferences in London and Dublin including cuEngage 2019 where I spoke about Open Banking and the opportunities that it specifically presents for credit unions.
Many banks and credit unions haven’t been able to deliver a truly seamless member experience due to things like data silos, decades-old infrastructure and a risk-averse culture. This has opened the door to “disruptors” and start-ups, such as Revolut and Monzo, that can leverage data and modern technology to deliver enhanced experiences.
But now Open Banking opens up a world of opportunity for credit unions. Credit unions have topped the CX Survey for the 5th year in a row. There is no denying the customer service, and at the Credit Union members feel like people; not a number. However there is an opportunity to provide members with an even better experience.
Credit unions need to consider whether there is an opportunity to provide their members with a better service. Would it be helpful to members if they could log on to cuOnline+ and see in that portal not only the information that they provide them on their Credit Union account, but also their current account and their credit card account? This could be something members would find very useful.
This offers members one holistic view of their finances, which gives them a better understanding of where they could make savings or spend less. It also offers members more control and more freedom to choose from a broader range of financial services providers.
For your credit union, it opens up the opportunity for you to own the primary member relationship by allowing accounts from different providers to be accessed via a single interface owned by you. This allows you to promote your competing services directly to the member, side-by-side with other financial providers.
Since it gives you full visibility of members’ other banking accounts, you can have a better understanding of their spending/saving behaviour. This helps you make better informed decisions so there is less lending risk.
If you have any queries regarding the opportunities with open banking for credit unions, or require any further information, please get in touch today.