The FLEX Connexion Blog

3 Must-Have Core Technology Features to Kickstart Member Growth

Written by Preston Packer | Jun 11, 2024

Your credit union's core technology significantly influences the overall member experience. In a competitive financial services industry, your core technology plays a crucial in distinguishing your credit union from other financial institutions. Whether it's enhancing scalability or attracting potential members, your core technology is the cornerstone of expanding your credit union's reach.

Continue reading to discover the challenges that may hinder member growth and how your core technology can serve as a valuable tool in overcoming these obstacles.

 

Challenges to Member Growth in the Credit Union Industry

Credit union member growth is no easy task. With time, money, and employees dedicated to attracting and retaining member, your credit union still faces difficulties converting new members. Here are three common challenges that impede member growth:

  1. Rapidly Evolving Expectations and Needs: Over the past five years, the world has encountered a series of unprecedented events that have reshaped financial priorities. Members faced challenges from housing market fluctuations, inflation, stimulus packages, and job uncertainties, requiring financial institutions to adapt quickly.
  2. Credit Union Misconceptions: One of the challenges faced in achieving member growth is that the credit union benefits are unknown. Despite credit unions offering lower interest rates, many individuals opt for banks out of familiarity, overlooking potential drawbacks.
  3. Falling Member Loyalty: Another significant challenge lies in the diminishing loyalty towards financial institutions. With declining member loyalty, good service alone no longer ensures lifelong credit union membership. A FICO study found that 70% of people are willing to switch institutions for better service elsewhere.

Despite these challenges, your credit union can still effectively attract and retain members, with your core technology playing a crucial role in achieving this goal.

 

3 Core Capabilities to Grow Your Members Today

1. Personalized Member Experience Through Data Analytics

Having a core processor that allows your credit union to provide a personalized member experience through in-depth data analysis makes all the difference. 

Misconceptions about personalized member experiences are common. Personalization involves more than using a member's name in a mass email.

Your credit union can provide a personalized experience by offering your members the financial services they need based on their financial journey. For example, you could offer GAP insurance when a member takes out a loan for a car. This delights your members and stops them from looking elsewhere to meet their financial needs. 

2. Digital Lending Opportunities

Utilizing digital lending not only streamlines the loan application process but also acts as a magnet for attracting new members to your credit union. By making digital lending a key component of your marketing strategy, you can entice potential members to discover your credit union online.

Prospective members can also easily sign up for your credit union and gain convenient access to financial services with the opportunity for digital lending. This smooth and hassle-free process not only serves as an exceptional inbound marketing tactic but also provides compelling reasons for individuals to make a long-term commitment.

Click here to download your free copy of FLEX's digital lending eBook. 

3. Open APIs

Open APIs is crucial for boosting member growth at your credit union by enabling smooth integration with a variety of financial technologies and services that enhance the member experience. Open APIs give you the flexibility to offer personalized financial solutions, streamline operations, and expand service offerings without the need for extensive in-house development.

 

Skyrocket Your Member Growth With FLEX

At FLEX, we recognize the critical role of attracting and retaining members for your credit union's success. With the right core technology in place, your credit union can effectively adapt to the evolving demands of your members.

FLEX empowers over 250 credit unions with cutting-edge technology to drive member growth. Discover how one credit union achieved remarkable success in expanding its membership through FLEX's innovative core technology. Click below to learn more about their inspiring journey.