Credit unions need to prioritize innovation to keep up with evolving consumer demands and industry product innovations, according to PSCU EVP and Chief Operating Officer Tom Gandre. Consumers are willing to move their accounts elsewhere to get the enhanced payments capabilities they seek, and credit unions cannot afford to put off innovation. The latest PSCU/PYMNTS CU Innovation study found that 64% of members want their primary financial institution to offer more payments capabilities, and 27% say they would switch financial institutions to find product innovation. These findings highlight that credit unions must remain vigilant while simultaneously monitoring and adapting to consumers’ changing payments expectations.
Partnering with a credit union service organization or like-minded industry organization is an approach that credit unions should consider in order to confidently make these decisions in a cost-effective way. For example, as a financial technology solutions provider, PSCU supports credit unions on their respective innovation journeys by scaling leading-edge solutions to enhance the member experience. These enhancements often entail expanding the choice and variety of credit unions’ payments offerings while providing more personalized and connected experiences — ultimately driving member retention and card utilization.
Attracting and retaining members requires credit unions to strategically plan and invest in innovative digital product and service capabilities that meet members’ changing expectations. Even when motivated by economic uncertainty, scaling back on innovation means falling behind and potentially losing members to competitors. Today’s investments will ensure credit unions remain ahead of the curve and well-positioned to succeed regardless of the economy’s trajectory in the second quarter and beyond.