Co-op Solutions 9692 Haven Ave. Ste. 300, Rancho Cucamonga, CA (800) 782-9042
Fueling financial performance through daily interactions
Please submit your information below and download the white paper
A Co-op Solutions research study in partnership with and
Key findings that informed our insights
Scroll for more insights
Please submit a completed form to receive an email with a link to the white paper
Read Findings
Learn how to serve members’ everyday needs, while building trust and helping members achieve long-term goals. Co-op’s research, in partnership with EY and Mastercard, uncovers how consumer and member financial behaviors, preferences, and challenges have changed the credit union service model requirements.
For a complete look, download our latest white paper Fueling Financial Performance Through Daily Interactions.
Dive deeper into the key findings from the 2023 Co-op CU Growth Outlook research with these interactive data reports:
Payments Strategy: A Necessary Shift for Credit Unions
Building Trust with Members Through Daily Interactions
Understanding the Psychology of Payments
Get the white paper
Co-op Solutions 9692 Haven Ave Rancho Cucamonga, CA (800) 782-9042
Key findings from the 2023 Co-op CU Growth Outlook white paper, conducted in partnership with EY and Mastercard.
Did you know that credit union (CU) members have, on average, three times more financial relationships than non-CU members?
Credit union members have
more financial relationships. This means members aren’t getting what they need from their credit unions, and they’re finding it elsewhere.
Member needs are changing. They’re no longer asking for personalized digital experiences, they’re expecting it.
The relationship between credit unions and their members is evolving into one that’s built on a foundation of capabilities, rather than character alone. As the model that credit unions have sworn by for long-term growth becomes more costly and inefficient, there needs to be a shift away from how credit unions have traditionally done business.
Customer acquisition costs (CAC) for credit unions are
per member, and higher for lending and investment products
Credit unions do not retain
of new accounts within one year of being opened
However, credit unions can capture long-term value through micro-interactive products such as digital payments solutions that generate recurring revenue streams, while staying top of mind.
These micro-interactive products are exactly what members and prospects need to manage their daily lives, and that’s what is earning long-term trust with the providers that offer them.
of consumers cite engagement as the top driver of primacy
weigh trust/personalized capability as a driving factor to add new financial relationships
Even if rates are raised:
With a more holistic, member-centric approach over the next five years, CUs are expected to grow at a rate
faster than the 2018-2022 period
Now is the time for credit unions to capitalize on this golden opportunity. It’s crucial that credit unions take advantage of this shift in the market, playing to their own strengths while also incorporating capabilities that members have now come to expect. By building solutions around a member-centric model, credit unions can become the go-to providers for what today’s modern member needs from their financial partner.
This report is just a snapshot of the information from Co-op's proprietary CU Growth Outlook research. Read our full Fueling Financial Performance Through Daily Interactions white paper.
For additional insights on members’ evolving definition of trust, read our report on Micro-interactions and Building Trust with Members.
Back to Overview
Back
Credit unions (CU) have a long history of being there for their members. But as consumer needs have evolved and they have turned towards digital solutions, credit unions have lagged behind fintech and neobank competitors in delivering the convenient and reliable services that their members are now expecting.
of consumers use some form of digital payment,
report doing so directly with their credit union
Instead of having a primary financial relationship with their credit union, members are stringing together different services and solutions to meet their day-to-day needs.
Credit unions are losing opportunities to engage with their members every day, which impacts longer-term value solutions like mortgages and loans.
The more credit unions expand their capabilities and service offering in the form of micro-interactions, the more likely they are to win over more members.
Credit unions have the chance now to capture more members for the long-term than ever before, and Co-op is here to help guide you through the process.
To learn more about the psychology behind payments and the benefits of digital payments for credit unions, read our report.
When it comes to building financial relationships,
of respondents indicated that engagement was a top reason for relationship primacy.
As a result, consumers are turning to fintechs, neobanks and other institutions to meet their needs.
Micro-interactions dominated by banks and fintechs
Credit unions have the golden opportunity to move from product-centric to member-centric by leveraging micro-interactions to meet daily needs, increase engagement, and build trust with members.
With a more holistic, member-centric approach, CUs poised to capture
of the commercial banking sector's assets by 2027
Members and prospects prefer holistic offerings from credit unions over national banks by
and over fintechs by
Disclaimer: Brand names are used for illustrative purposes only. Co-op has no affiliation, sponsorship or endorsement with these brands, which are owned by their respective trademark owners. Zelle® and the Zelle® related marks are wholly owned by Early Warning Services, LLC.
When it comes to serving your members, it's important to understand the challenges they’re up against, as well as the current psychological factors influencing their purchasing decisions.
To learn more about payments strategies and the necessary shift for credit unions, read our report.
These larger behavioral patterns can be further explored through financial attitudes; unsurprisingly, Budgeters are more likely to plan ahead when it comes to household finances
Every member has unique goals that drive their financial decisions and influence their payment preferences. From the 2023 Co-op CU Growth Outlook research, we were able to identify and categorize these behaviors into three unique frameworks so that you can better serve your members.
We found that members who prefer credit exhibit stronger mental accounting behavior, while those who prefer debit have a lower awareness of their financial standing.
Members who deal with credit are less likely to make unplanned purchases. However, those who use debit cards are less likely to stick to a budget, so they tend to avoid credit cards.
Credit card users are more concerned with prioritizing future outcomes, while debit users focus more on purchases for immediate needs and happiness.
Based on the above frameworks, key differences between types of buyers were identified.
What does this mean for credit unions?
There’s an opportunity to be the go-to partner for your members by demonstrating that you understand their needs, and that you’re best placed to help them achieve their goals.
Co-op CU Growth Outlook: Fueling Financial Wellness Through Daily Interactions The current economic environment has led to a crisis of confidence in financial institutions, and consumers are growing increasingly unsure of whether their money is safe. As a result, financial institutions are now competing intensely on trust, and for the industry’s greatest resource: the attention span of the consumer. Co-op Solutions has partnered with EY to determine how financial consumer behaviors and preferences have changed, and with Mastercard to better understand the psychology of payments. Together, this research will help credit unions deliver outstanding solutions to serve their members’ micro and macro transaction needs. The research shows that credit unions have an opportunity regain the trust of financial consumers and achieve long-term growth, by embracing a new model of member centricity to win the moments that matter. Download the white paper As our partner, you have exclusive access to this proprietary research and insights. Explore the resources available below and reach out to solutions@coop.org for more information. Credit unions have an opportunity to differentiate, drive growth and reclaim trust by winning the daily moments that matter. How can you seize the moment? Watch the video Why is this new research so important to the credit union industry? Read the blog Check out the interactive report that gives you access to the insightful data from the Co-op CU Growth Outlook research. View the interactive report Co-op Research Studies Long-Term Financial Wellness as a Growth Strategy and New Member-Centric Model. Read the press release
Pardot Form
Download the white paper
White Paper Link: https://insights.co-opfs.org/whitepapers/fueling-financial-performance-through-daily-interaction
Co-op Research Video
How can you seize the moment?
Credit unions have an opportunity to differentiate, drive growth and reclaim trust by winning the daily moments that matter.
Watch the video
View Report
View our Research Reports
Co-op CU Growth Outlook: What credit unions need to know.
The current economic environment has led to a crisis of confidence in financial institutions, and consumers are growing increasingly unsure of whether their money is safe. As a result, financial institutions are now competing intensely on trust, and for the industry’s greatest resource: the attention span of the consumer. Co-op Solutions has partnered with EY to determine how financial consumer behaviors and preferences have changed, and with Mastercard to better understand the psychology of payments. Together, this research will help credit unions deliver outstanding solutions to serve their members’ micro and macro transaction needs. The research shows that credit unions have an opportunity regain the trust of financial consumers and achieve long-term growth, by embracing a new model of member centricity to win the moments that matter.
The data speaks for itself
