Credit unions to the rescue: How to help your members survive the cost-of-living crisis (Part 1)

Rising prices and persistent inflation have, for many households, become a full-fledged cost-of-living crisis.  A recent survey, however, found that many financial institutions are not rising to the occasion to support customers in a meaningful way. Especially during challenging economic times, people expect a more sophisticated level of personalized advice and advanced money management capabilities to help manage their budgets and spend smarter.

At a time when every dollar counts, and consumer purchasing power is getting hit hard by inflation, now is a critical moment for credit unions to step up and proactively help members build financial wellness, both during the cost-of-living crisis and beyond. Improving members’ financial well-being reinforces the promise of, and is consistent with, credit unions’ member-centric mission.

Personetics recently commissioned a survey of 5,000 banking customers to see how the cost-of-living crisis is affecting people’s personal finances and learn what people are demanding now from their financial institutions. This survey’s findings were eye-opening: nearly 2/3 of respondents said that they had not received any personalized advice or specific communication from their financial institution about the cost-of-living crisis. 1/5 of people said that they feel like their primary FI doesn’t care about them or doesn’t understand their needs during these challenging economic times.

Too many people feel like they are being ignored or treated impersonally by their financial institutions – left to navigate tough money predicaments without a trusted advisor on their side. The majority of our survey’s respondents said that they want financial institutions to give them a more sophisticated digital banking experience, with advance warnings of financial issues, automated money management, and other personalized financial advice.

 

continue reading »