Empowering Financial Futures: How Credit Unions Can Use Education to Attract New Members
A healthy credit union requires consistent growth to be sustainable over the long term. Competitive products and services don’t always lead to buying decisions in an oversaturated market, but resources like financial education tools can make credit unions stand out and lead to increased member acquisition and retention.
While products and services are important for growth, offering free resources to improve financial literacy can help your credit union differentiate itself and increase member acquisition. These resources can significantly enhance the overall financial well-being of members, which in turn only benefits the credit union.
Let’s explore why financial literacy is so important for Americans and how credit unions can use these resources to onboard new members.
Answering the call for financial literacy
Financial literacy is a critical factor in long-term financial well-being, yet many Americans feel unprepared to navigate their financial futures. According to BMO’s Real Financial Progress Index, 77% of U.S. adults want to improve their financial literacy, but most have never received formal personal finance education. For those trying to learn as adults, the process can feel overwhelming.
Lacking structured guidance, many individuals turn to friends and family for financial advice. However, given the widespread lack of financial literacy, this often leads to misinformation and poor financial decisions. Without a solid foundation in financial education, people struggle with key financial milestones, from budgeting and saving to understanding loans and planning for retirement.
The consequences of this knowledge gap are significant. Research from the Federal Reserve shows that:
60% of adults lack confidence in their retirement planning decisions
More than 25% have no retirement savings at all
Many individuals don’t realize how much they need to save—or when to start—until it’s nearly too late. But financial illiteracy goes beyond retirement planning; it affects everyday money management, leading to higher debt, lower savings, and financial stress.
Credit unions have a unique opportunity to bridge this gap by offering financial education that empowers members to make informed decisions, improve financial stability, and build trust in their financial institution. Providing accessible, actionable financial literacy resources isn’t just a service—it’s an investment in long-term member engagement and well-being.
Adding value through financial education can help acquire new members
For those looking to level-up their financial knowledge, offering free resources to improve literacy can be a simple way to attract new members to your credit union.
Millennials are now the largest generation in the workforce, and that could pose challenges for credit unions unless they find ways to engage that audience. Currently, 68% of Millennials prefer large banks to credit unions. At the same time, 92% of Millennials believe banks can’t be trusted. Millennials are extremely aware of their need for financial education, with 64% of their generation saying they are poor at managing money. Credit unions offering free educational resources could drive a wedge between banks and Millennials, giving them the push they need to switch to a credit union.
Providing accessible, accurate, and personalized financial education helps cut through the noise, equipping individuals with the knowledge they need to improve their financial well-being. Offering free educational resources can attract new members, while delivering real value—boosting their confidence and financial security—fosters long-term loyalty and retention.
Financial education in the digital age
For years, financial institutions have used financial education to attract and onboard new members. Traditional methods—such as seminars, whitepapers, educational blogs, and other informative content—have effectively introduced prospective members to financial concepts and built initial trust.
However, in the post-COVID digital era, consumer expectations have shifted significantly. People now seek personalized, convenient experiences that fit into their daily lives. As a result, financial education remains an effective strategy for attracting members, but it must be adapted for the digital age to maintain its impact.
Today's consumers engage primarily through smartphones and digital platforms. To effectively attract and retain members, financial education needs to be accessible, actionable, and integrated into digital channels that provide real-time support and personalized guidance. By modernizing how financial education is delivered, credit unions can meet evolving consumer needs and foster deeper member engagement.
Ovation is focused on providing credit unions with modern financial wellness programs - available through both web and mobile - that meet today’s digital demands, boosting member engagement and trust. To learn more, schedule a demo today.