In the ever-transforming battle for consumers, fintechs seek to be the new rulers of the banking universe. The secret to growth now lies in understanding the changing role of banking products for today’s consumers.
During last week’s webinar, “Fintech Transformers: Rise of Primacy,” StrategyCorps Partner Dave DeFazio and Catalyst Corporate Vice President of Sales Karen Coble provided a live demonstration of the banking apps that are reimagining the definition of “PFI.” Instead of “Primary Financial Institution,” DeFazio suggested that “Primary Financial Interactions” more aptly describes changing consumer attitudes and financial behaviors.
A new credit union experience
To understand the digital demands of members, credit union leaders can look to other industries and see what solutions foster these types of experiences or interactions for their members. DeFazio highlighted Amazon One, an innovative new merchant payment system from Amazon that uses a person’s palm to reinvent the shopping and payment experience. This retail example further demonstrates what we are witnessing across the credit union industry, shared DeFazio, “The accelerated adoption of digital has changed the way members will utilize the credit union and evaluate credit union services.”
He also quoted marketing guru Warren Tomlin, “A person’s last experience is their new expectation.” No matter the industry, a great digital experience sets the standard for others to follow, and with 90% of Americans now using digital payments, the experience matters more than ever.
Fueling financial health (and altering behavior) through innovation
Financial health is also crucial, said Defazio, noting that nearly 50 million Americans either have invisible credit or un-scorable credit. These numbers raise an important question: How can credit unions help Americans in low-income designated segments improve their financial health?
An innovative secured credit card program is one answer. Challengers, like MoneyLion, offer uniquely designed secured credit cards with friendly subscription pricing strategies, instead of the penalty-based fee structures that dominate traditional banking.
The average age of credit union members is 47, and they tend to be reliant upon various digital channels. Credit union leaders should ensure their digital payment services offer many different tools for members to improve their financial health.
Apps like Catalyst Bazing, a modern-day rewards checking program from StrategyCorps, help boost checking account engagement, while also offering an abundance of cost savings and benefits to promote financial fitness among credit union members. The best of both worlds, Catalyst BaZing can help credit unions increase primacy and become less reliant on overdraft fees, as members focus on their own financial productivity.
For more insights, check out last week’s webinar, “Fintech Transformers: Rise of Primacy,” now available on-demand.