Credit cards play a critical role in credit unions' consumer lending strategies, but many credit unions have hesitated to switch to in-house cards. This has mostly been due to the unique characteristics of credit cards and inadequate core systems. However, today's credit unions must rise to the challenge and implement an efficient card management system, which will ultimately benefit both their CU and its members. Throughout this article, we'll show you the top six key advantages of a core-integrated card payment solution.

Digital and mobile banking have become an in-demand reality for virtually every demographic. According to the Digital Banking Survey in March 2021, survey respondents report they will continue to prefer the convenience of digital channels for transactional, simple activities, such as depositing checks, transferring funds, and paying bills. And this sentiment has huge implications for credit unions because it underscores that digital payment solutions are here to stay. Even so, there are several common myths that may hinder credit unions from fully embracing digitization. Let's take a closer look at some of the more popular myths to uncover the truth.

The term "digital wallet" has been floating around for the past few years. This technology doesn't require a physical credit or debit card and lets consumers pay for products and services using card information stored in a device such as a smartphone or a computer. In fact, according to a 2021 survey, around 150 million Americans have used a digital wallet at least once. Will this intangible payment method put credit cards out of commission? And what does this mean for your credit union?

Digital transformation is no longer a buzzword that all the cool financial institutions are using. Instead, COVID-19 has escalated it from a nice-to-have, wishful thinking strategy into a must-have for credit unions to remain competitive. At the very heart of any effective digital transformation is a metamorphosis that transforms how your credit union interacts with members. In the act of doing so, it should modernize and simplify processes while generating efficiencies and improving KPIs, such as the credit union's efficiency ratio. While COVID-19 has escalated the importance of digital transformation, it has also highlighted key problems credit unions face.

Your credit union may have figured out how to serve Millennials, but there is another generation to understand: Gen Z. Although the two generations look similar, their interests, tendencies, and money-spending habits are quite different. So, how can your credit union stay ahead of the game and offer the most convenient and appealing services to the next round of consumers? These potential members are the future, and credit unions would be wise to learn how best to cater to this generation.

Over the next two decades, the U.S. will experience an unprecedented generational transition of wealth. The aging Baby Boomer generation is expected to transfer $30 trillion of inheritance to Generation X and Millennials. This historic transition of wealth and buying power is also ushering in shifting perspectives around debt, money, and investing. As such, it's imperative credit unions harness this knowledge to tailor how and what services they deliver to their members. Let's take a closer look at generational trends and how credit unions can use these trends to unlock a superior credit union member experience.

One thing is for certain—your credit union members have options; and they are not afraid to use them. For instance, Accenture reports credit unions and banks lose up to 25% of new customers during the first year. Failing to master this type of customer churn can easily put a healthy credit union in a crunch, considering the average new credit union member costs $442.

For some time now, cash has taken a backseat to credit and debit cards in America, and digital and mobile banking has been evolving. The events of the past few years have only accelerated the transformation of more and better digital banking services, digital wallets, and other digital solutions to fill customer and member needs. Those credit unions who adapted and enhanced their digital banking platforms likely satisfied and maintained their members, but some might wonder if digital banking will replace all in-person transactions and maybe even cash itself.

With mobile banking reaching its saturation point, credit unions now need to focus on product differentiation. It is no longer enough to just offer a mobile solution--it is now time to match mobile offerings with your member base. Remember, product differentiation is key, design excellence matters and your aim should be an incredible member experience.

As mobile banking continues to rise in popularity throughout the United States and the world, credit unions must pay special attention to the types of features they offer in their mobile app or they risk getting left behind. But how exactly do credit unions create a mobile banking app that not only handles the basics, but goes above and beyond setting itself apart from the rest of the competition?