Guest editorial by Marc Miller, CRO, Constellation Digital Partners
Credit unions are making significant investments in modernizing their digital banking environments and improving member experiences through the mobile and online channels. What many are finding, however, is that the old adage “If you build it, they will come” does not always apply, and credit union executives are looking for ways to help ensure that their technology investments result in greater levels of member engagement.
Often, it is individual features that draw members into their credit unions’ digital banking environments and today, members are looking for more than basic banking functionality. So what are the must-have apps that resonate the most with members?
In today’s economic environment – one characterized by higher prices on consumer goods and higher interest rates on loans – consumers are looking for financial wellness resources that can help them save more money on everyday expenses, and an often-overlooked opportunity relates to subscription management.
It is estimated that up to 80% of U.S. consumers currently overpay on their monthly bills and a major contributor to this is unwanted or unused recurring subscription services. Almost all of us have fallen for the “free” trial that then converts into a recurring subscription. Streaming services in particular have benefited from this practice and a recent Forbes Home and OnePoll survey indicates that U.S. consumers spend, on average, more than $550 annually on streaming services alone, with 44% having seen their subscription costs increase over the past year. Compounding the issue is the fact that many consumers unknowingly have multiple subscriptions for the same service or are paying for a service that they no longer use.
In too many instances, once the “free trial” expires and the subscription automatically activates, it may go unnoticed for months, or even years, before steps are initiated to cancel it. Subscription cancellation is no easy task and that is by design – something that has even attracted federal regulators’ attention.
Herein lies the opportunity for credit unions. Traditionally, when someone wanted to cancel a service but was unable to do so, they would contact their financial institution to initiate a dispute. By helping their members both gain visibility into exactly what subscription services they have in place, and more quickly and easily navigate subscription cancellations and management from within the mobile banking app, it reinforces the credit union’s role as a true financial wellness partner by enabling changes that have an immediate positive impact on members’ wallets. Those savings can then be redirected toward other banking products like savings and retirement accounts, college savings, or simply help offset the rising cost of staples like groceries or utilities.
Consumer expectations continue to rise when it comes to mobile and digital banking, but they are not only seeking a more modern, delightful user experience simply for the sake of the experience. Credit unions need digital banking technology that provides the flexibility and capability to offer innovative products and services that their members value most. Those credit unions that are seeing higher levels of member engagement and more meaningful interactions within the digital banking environment are the ones who have recognized this and are putting it into action.
Marc Miller is Chief Revenue Officer of Constellation Digital Partners (Constellation), a leading provider of digital banking solutions that enable community-based financial institutions to deliver a unique and customized digital banking experience to their members. Constellation’s patented, open development platform allows credit unions to pursue innovative fintech services at the pace of their individual digital strategy.