How Credit Unions Can Use Digital Tools to Strengthen Relationships with Members
Although digital banking has been around for decades, the global pandemic changed the way people interact with their financial institutions by accelerating the adoption of online banking. Social distancing showed consumers that they rarely need to interact with their institutions in person, and most banking transactions today are handled online - bringing speed and convenience to consumers. Few would argue that it’s become essential for credit unions to supply a seamless digital experience to meet consumer expectations in the post-Covid era.
As financial institutions become increasingly competitive, customer experience is expected to become the differentiating factor to retain and grow credit union membership. Cohesive digital solutions can upgrade the member experience by improving ease of use, adding personalization, and increasing demographic appeal.
New digital tools are on the rise, and the broadening of AI-based tools will only increase new technology. Successful institutions have shifted their mindsets to view their primary landscape as digital. While in-person experiences are still important, consumers are beginning to view them as secondary.
PYMNTS research finds that nearly 25% of consumers would want to change financial institutions if their digital solutions are not adequate, and this is expected to grow as younger generations come of age. Since improving the digital experience of credit unions will only become more important in the future, credit unions who are early adopters will be able to retain and attract more members; those who wait risk a difficult catch-up process.
Before exploring how credit unions can better implement digital solutions, let’s dive into the 3 main differences digital solutions can make for credit union members:
1. Meeting members where they are
In today’s digital world, people expect instant access to information—including their banking details. Whether they’re on a smartphone, computer, or visiting a branch, members want their credit union to provide seamless access to their financial tools whenever and wherever they need them.
This shift toward omnichannel banking—offering a cohesive, integrated experience across all platforms—reassures members that their financial institution is accessible and responsive to their needs.
Since the pandemic, nearly every in-person service now has a digital counterpart, and many financial institutions offer fully digital banking experiences. As consumers increasingly prioritize ease and convenience, credit unions must embrace digital transformation to stay competitive with tech-savvy financial providers.
2. Delivering the Personalization Credit Union Members Expect
According to a PYMNTS survey, 72% of consumers want personalization from their financial institutions. While personalization can be difficult at scale, technology has advanced to the stage where it can offer members a unique and tailored experience based on their circumstances. .
The key to personalization is providing insights and information based on the member’s unique circumstances. Credit union members want to be recognized for their individual situations and guided toward their goals in a way that matches their financial position and ability. Personalization allows users to feel like their financial institution really cares about them.
The upside to incorporating personalization for credit unions is immense. Digital solutions like Ovation can identify gaps in a user’s financial picture and recommend in-house products to address members’ needs, identifying cross-sell opportunities for the credit union. With Paperwork, users can even set reminders to follow through with these offers, automating the sales and marketing process for the credit union and keeping their products top-of-mind.
3. Earning the trust of younger generations
To attract younger generations, credit unions will need to embrace a more digital approach. Younger consumers, such as millennials and Gen Z, have grown up in a highly connected digital world. They have a greater degree of trust in technology and are increasingly conducting banking and other transactions online, where convenience and speed are paramount. Online banking and digital transactions offer the convenience of accessing financial services and conducting transactions from anywhere and at any time. This level of flexibility aligns with their expectations and appeals to their preference for streamlined and “one-click” online experiences.
Additionally, younger generations place a significant emphasis on transparency and information availability. Digital financial solutions typically provide them with real-time access to account balances, transaction history, and detailed financial insights. This transparency enhances their sense of control and empowers them to make informed financial decisions.
Digital competitors for credit unions are only becoming more robust. With the rapid advancements in technology, credit unions can no longer afford to sit on the fence when it comes to accelerating their digital transformation strategies.
How Credit Unions Can Implement Digital Solutions
The member experience holds the power to either enhance or erode trust, emphasizing the importance of ensuring top-notch quality in digital solutions. Implementing any digital tool that proves challenging or confusing to use would be counterproductive, as a subpar digital experience can inflict more harm than not having a digital experience at all.
A positive digital experience, however, can potentially improve trust, increase member retention, and grow membership. Due to the costly and complex nature of technology development, more credit unions are turning to third-party providers for technology solutions. By doing so, credit unions can accelerate their digital strategy and bring white-labeled digital experiences to market more efficiently.
The Ovation Digital Experience
Ovation brings financial well-being into the digital age, combining personalized insights, behavioral incentives, and real-time financial support to help members take control of their financial future.
Designed for ease and impact, our platform provides tailored financial guidance based on each user’s unique circumstances. Members gain access to a comprehensive suite of tools, including:
Engaging modules - interactive chatbot provides insights and education in bite-size but impactful chunks.
Balance Tracking – See all accounts in one place down to transaction level for a clear financial picture.
Financial Coaching – Get expert guidance to navigate financial challenges and opportunities.
Emergency Planning – Secure financial peace of mind with structured savings and preparedness tools.
Actionable To-Do Lists & Reminders – Stay on track with proactive nudges that encourage smart financial habits.
Digital Organizer – Store and manage financial documents securely, ensuring everything is accessible when needed.
With Ovation, credit unions can deliver a modern, digital-first financial wellness experience that empowers members, builds trust, and deepens engagement.
Ready to see Ovation in action? Schedule a demo today and discover how we can transform your credit union’s approach to financial wellness.