Leading the way: How credit unions are shaping the future of financial wellness

In a time when cost of living is climbing, debt is increasing, and economic uncertainties are ever-present, leading a healthy life and achieving financial wellness has become more crucial than ever. As of July 2024, an estimated 75% of Americans are struggling with their financial health. This is where credit unions step in, playing a crucial role in turning things around and building a future where financial wellness takes center stage. By focusing on this, credit unions aren’t just helping their members—they’re also boosting KPIs like member retention, deposit levels, loan repayment rates, and overall trust and engagement.

Member first: The unique role of credit unions

Credit unions hold a special place in the financial world. Unlike other financial institutions, they’re not driven by profit but by the mission of serving their members and helping their communities, as they are member-owned cooperatives. The unique mission of ‘People Helping People’ and organizational structure means that credit unions are deeply aligned with the needs of their members, allowing them to focus on what truly matters—offering personalized, community-focused financial tools, education, and resources that help foster financial well-being.

What sets credit unions apart is their deep understanding of the communities they serve. They don’t just offer one-size-fits-all solutions; they tailor their services to meet the unique needs of their members. Whether it’s helping someone manage their debt or build up savings for unexpected emergencies, credit unions are equipped to help with the diverse financial challenges their members face every day.

Leading financial health through digital banking

As in-branch visits decline, credit unions have realized that they can’t rely on face-to-face interactions to understand their members’ ever-changing needs. With members visiting branches less frequently, digital banking channels have become the go-to place for credit unions to connect with their members and craft solutions tailored to their unique financial situations. The key to making this work is turning digital engagement into meaningful experiences.

Credit unions are embracing digital innovation to make saving money simpler and financial management easier. One of the cornerstones of financial wellness is teaching people how to save frequently through small, healthy habits. Digital banking features like card round-ups on everyday transactions make it easy—purchases are rounded up, and the extra change is automatically deposited into savings accounts. It’s a simple yet powerful way to encourage consistent savings with minimal effort from the member.

Taking this approach a step further, leading credit unions are rapidly shifting toward helping members save for both their short and long-term dreams with digital experiences, whether it’s building an emergency fund or saving for their first home. These digital tools offer a variety of savings methods as well as visual feedback on progress and personalized tips, making it easier for members to stay on track and reach their financial goals.

Personalized member experiences for smarter decisions

Let’s go back to the manifesto of ‘People Helping People’. What really sets credit unions apart is their commitment to personalized services and deep community ties. Now, with the rise of financial wellness tools, they’re bringing that personal touch into the digital space. In today’s digital age, over 80% of people expect their financial institution to help their financial health, but only 14% of people feel they’re getting the support they need. That’s where credit unions are stepping up. Credit unions are now beginning to offer automated, personalized financial insights, thanks to fintech integrations that leverage digital engagements, data, and AI. These insights provide members with tailored advice on how to reduce spending, manage debt, and improve credit. Through these digital experiences, credit unions empower their members with the information they need to make smarter financial decisions and feel more confident about their financial future.

If we look beyond just important insights, credit unions are now helping members achieve financial wellness by providing completely personalized financial products. By analyzing individual financial behaviors and needs, they can offer customized loans, credit cards, insurance options, and investment opportunities that are most relevant and beneficial to each member—all through a seamless digital experience.

How fintechs are empowering credit union members

Fintechs are transforming financial wellness, and credit unions are at the forefront, integrating innovative solutions that make it easier for members to save for their future and manage their finances. While implementing these technologies can be costly, many credit unions are already partnering with fintech companies to deliver personalized experiences to millions of members.

These companies are enabling credit unions to effortlessly introduce new financial wellness and personalized banking experiences while reinforcing their shared mission of ‘People Helping People.’ These turnkey experiences are already fully embedded in leading digital banking platforms and can be deployed quickly without development or operational effort. With such experiences, credit unions are growing member deposits, enhancing member satisfaction, and fostering a stronger sense of community and purpose.

Looking ahead: The future of financial wellness

As the financial landscape continues to change, credit unions are in a prime position to take charge of advancing financial wellness. With their focus on member-centric solutions, community impact, and digital innovation, credit unions are uniquely equipped to help their members achieve greater financial stability, strengthen the overall economy, and, most importantly, remain relevant in a rapidly evolving world.

Credit unions are more than financial institutions—they’re trusted pillars of the community, fully committed to enhancing the well-being of their members and their community as a whole. By continuing to expand their offerings and partnering with fintech companies like Spiral, a CUNA award-winner (aka America’s Credit Unions), credit unions that prioritize innovation and financial wellness can attract a new generation of members—and stay relevant. But embracing digital experiences for financial wellness isn’t just about keeping up; it’s about forging deeper connections with younger, more engaged members while uplifting communities and reinforcing the mission of ‘People Helping People’ every day through the digital banking experience.