Credit unions are soaring—the market size of the credit unions industry increased 5.4% in 2023. And annual credit union loan growth rate is increasing too with a whopping jump from 5% in 2020 to 22.9% in 2022.
But with that growth comes the flipside: Total loans outstanding $1.59 trillion, and for the third quarter of 2023 the delinquency rate was 72 basis points, up 19 basis points from one year earlier.
Engaging with members, both before they miss a payment and after they slip into delinquency, must be a priority for all organizations—especially for credit unions with dedication to supporting their members’ financial health.
It’s no secret that consumers’ preferences have been shifting overwhelmingly to digital channels. With right-party-contact rates declining and consumers increasingly gravitating towards email and SMS, traditional calling models are facing historic headwinds.
But there’s a better way for credit unions to continue expanding financial access through lending, while empowering members with the tools they need to repay their loans. There is a win-win solution for credit unions and members.
Enter digital-first engagement through an optimized delivery platform designed with credit unions’ dedication to member experience in mind.
The concept of digital outreach isn’t new—email and SMS have been around for decades—but a digital engagement strategy involves more than just reaching members on digital channels. It involves using digital technology to support members throughout the entire repayment journey. This requires a provider to be able to:
For all of these reasons, digital engagement has quickly become the most effective path forward for the industry. Some of these credit unions, particularly the largest enterprises, will try to build parts of a digital operation in-house—but they’re likely to encounter numerous hurdles along the way.
But with that growth comes the flipside: Total loans outstanding $1.59 trillion, and for the third quarter of 2023 the delinquency rate was 72 basis points, up 19 basis points from one year earlier.
Engaging with members, both before they miss a payment and after they slip into delinquency, must be a priority for all organizations—especially for credit unions with dedication to supporting their members’ financial health.
It’s no secret that consumers’ preferences have been shifting overwhelmingly to digital channels. With right-party-contact rates declining and consumers increasingly gravitating towards email and SMS, traditional calling models are facing historic headwinds.
But there’s a better way for credit unions to continue expanding financial access through lending, while empowering members with the tools they need to repay their loans. There is a win-win solution for credit unions and members.
Enter digital-first engagement through an optimized delivery platform designed with credit unions’ dedication to member experience in mind.
The concept of digital outreach isn’t new—email and SMS have been around for decades—but a digital engagement strategy involves more than just reaching members on digital channels. It involves using digital technology to support members throughout the entire repayment journey. This requires a provider to be able to:
Reach members with the right messages and on the right channels at the right time
Tailor and optimize outreach over time to drive engagement, commitment, and follow-through
Empower members to self-serve by providing information accessible whenever is convenient for them
Scale operations to any volume, even in a remote-first environment, while maintaining full regulatory compliance
For all of these reasons, digital engagement has quickly become the most effective path forward for the industry. Some of these credit unions, particularly the largest enterprises, will try to build parts of a digital operation in-house—but they’re likely to encounter numerous hurdles along the way.
Given the immense complexity involved—and the benefits of working with a provider that has performance data and expertise across many companies—the majority of credit unions seek out a partner to help them accelerate their digital delivery and engagement capabilities to reach delinquent members.
Unfortunately, it can often be difficult to evaluate the differences between one digital engagement solution and the next. Many providers use similar terms or make claims that are hard to assess critically. And the reality is not all of these solutions are created equal.
In our new eBook, The Credit Unions’ Guide to Digital Engagement for Past-Due Members, we take a deep dive into the key trends in members’ communication preferences, detailed look at the common hurdles implementing and optimizing a digital engagement strategy, and a full list of critical questions to ask when evaluating potential partners and their solutions.
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