By Bryan E. Clagett
With all the emphasis over the past several years regarding online banking and marketing, I wonder if the financial services industry is leaving out a critical consideration. More importantly, perhaps credit unions have not fully realized the opportunity to leverage their unique value proposition via the Internet. Simply put, the Internet can be leveraged well beyond the mere transaction. It’s time to move beyond online banking 1.0.
As financial cooperatives, credit unions need to ramp up efforts to engage their members. This means establishing relevant dialog and meaningful conversation. Note that I avoid the words “marketing” and “sales.” Trust in the typical credit union brand remains higher than the trust in the typical bank brand, so credit unions can approach members differently and most certainly be better positioned as a solution provider. But to do this, credit unions need to engage members. And they need to this on line and off line.
Enter personal financial management. PFM may well be redefining online banking and what members expect from their credit unions. PFM tools aggregate member financial records, allowing them to see credit union, bank, mortgage, credit card, investment, retirement and other accounts on one screen and instantly track their cash flow and spending behaviors. The most robust PFM platforms allow aggregation from thousands of financial institutions. A very holistic view of a member’s financial situation is presented, in one place.
PFM goes well beyond simply providing members another online transaction tool. PFM is the ideal engagement tool. By offering account aggregation, budgeting and cash flow tools, a credit union can get closer to member needs. Certainly the added ease and convenience associated with PFM is of tremendous value, but the ability to identify member need and then offer a relevant messaging strategy is priceless. A kind of intimacy can evolve from better aligning relevant offers with specific needs. A closer, more focused relationship with members no doubt drives satisfaction and share-of-wallet, and other benefits of developing an engagement banking strategy.
Financial literacy in the financial services industry has come a long way, particularly among credit unions. PFM goes a step further, as it allows credit union members to gain control of their finances. It is an engagement tool that helps credit unions distinguish themselves as genuine advocates. Welcome to the world of engagement banking.
CUES has partnered with Geezeo, Tolland, Conn., to make its Personal Financial Management tools readily available to credit unions. Learn more in this press release.
Bryan E. Clagett is chief marketing officer at Geezeo
