Building Trust Through Member Communications

By: Tori VanCura-Rutland, Chief Growth Officer at HC3

Rising interest rates and continued inflation are increasing the competition for deposits. According to BAI research, nearly two-thirds of financial services organizations reported increased consumer deposit competition last year. That is a significant increase from the 37% who reported increased deposit competition in 2021.

BAI research found a mere 44% of Gen X, 40% of Millennials and 33% of Gen Z have only one financial services organization, reinforcing the need to build deeper relationships with members to earn their loyalty. For credit unions, one overlooked area to assist in retaining members is the “lowly” monthly statement.

The required monthly statement is often overlooked as a tool to improve financial wellness. The member statement started as a way to track the transactional data of an account, which gave members a record of transactions that they could use to keep track of their finances. With the evolution of digital banking, members don’t rely on statements for that specific transactional data. Instead, they can see that information in real-time, online, or on their credit unions’ mobile app.

Members are counting on monthly statements and other communications to provide them with an insightful holistic view of their finances. As credit unions strive to set themselves apart from the pack, prioritizing consistent, clear and helpful member communications can increase the trust needed to retain members. These monthly communications also provide touch points to expose members to additional services that can increase deposits.

The Role of Member Communication to Build Trust

Credit unions are constantly communicating with their members. Most credit unions use a variety of channels, such as advertisements, app notifications, or emails, to share transaction details, promote services or send required notices. Physical statements, among other communications, often need to be personalized in either content or preferred delivery channels to provide value to the member.

Communicating consistently through a member’s preferred avenue is vital. While most members now opt into digital statements delivered by email, credit unions still need to be able to provide paper-based communications. Credit unions, by law, have to make paper statements available as an option since they cannot assume everyone has internet access. Other members may prefer mailed statements, so they don’t get lost in the overload of daily emails. On the other hand, digital delivery can be cheaper and faster, and members can archive their statements easily on their computers.

Credit unions should prioritize listening to member feedback and create a personalized experience based on their preferences. The technological capabilities available for automated solutions can improve the quality of member statements and allow for a more tailored experience.

Enhance Your Communications to Add Value

Since credit unions are still required to produce a statement, bankers should evolve their statements to better serve members. Bankers can take the data they already have and give members a well-rounded view of their financial health.

Personalizing communications with specific recommendations based on the members’ habits also creates a more profound relationship where members feel valued and seen. Transaction data can provide the insight needed to offer services like auto loans, home equity loans, savings programs, or child-based accounts within the monthly statement.

Statements can reinforce the credit union’s brand identity while communicating vital financial data. Utilizing design features typically associated with a digital experience can create a refreshed overall member experience across physical and digital communication channels.

Implementing features like vibrant colors for enhancing visual identification or highlighting account summaries to display critical data and improve readability enhances the value of the statement for members.

Enhancing member communications adds value beyond the traditional purpose. Statements can serve as a powerful tool for improving financial wellness. By providing a holistic view of financial information in a clear and digestible way, credit unions can reinforce brand identity and value proposition while meeting the ever-evolving needs of today’s members.

Members rely on consistent, clear, helpful communications, especially monthly statements, to examine their financial health. Credit unions have the opportunity to set themselves apart by prioritizing these personalized communications as a way to deepen member relationships and build trust. The path forward involves continual innovation and commitment to enhancing the end member experience. By listening to member feedback and utilizing today’s technological solutions, credit unions can retain members by adding value to their banking experience, solidifying their position as trusted financial partners.

As Chief Growth Officer at HC3, Tori oversees marketing/PR, strategic partnerships, business development, and project management. Previously with HC3, she worked as the Director of Project Management. She currently serves on the Association for Financial Technology (AFT) Board of directors and has served on the board of directors with Ballet Tennessee, Bessie Smith Cultural Center, and the Tennessee Association of Dance.