Long before creating a member-oriented experience in the delivery of financial services, credit unions have historically been recognized for their member oriented approach in delivering financial services. Unlike most large financial institutions, credit unions often are established based around a Members’ community (town, profession or geographical area) that build bonds over generations.
To most Members, the choice to join a Credit Union is more than simply convenience; it’s based on a trusting relationship.
Some recent articles surveying the ongoing investigation into the Educational Employees Credit Union (EECU) data breach have indicated how significant it is to maintain Member experience in Financial Institutions. Each incident of a cyber-attack is different but all events re-enforce a larger conversation about Trust, Transparency and the obligation Financial Institutions have to protect the sensitive information of their Customers.
Credit Unions fill a special niche in the Financial System. Many Members feel their Credit Union is a trusted partner who helps them achieve their Financial Goals through personalized service and a clear understanding of the needs of their Community.
The Importance of Member Relationships
Credit Unions are generally about building lasting relationships. They provide a wide range of services for their members including:
- Checking Accounts
- Savings Accounts
- Auto Financing
- Mortgages
- Credit Cards
- Planning for Retirement
- Financial Education Resources
Member usage of multiple products over time builds trust and intimacy as part of the relationship.
Financial institutions that build trust with their customers will typically have an advantage in developing loyalty and sustaining engagement with members.
Why Protecting Data is Important
With the advent of digital technology, the financial services industry is very reliant upon technology today to deliver services to customers. Customers have online banking, mobile apps, electronic statements and digital communications that make it easier than ever to manage their finances.
At the same time, all of these conveniences require financial institutions to manage large volumes of sensitive personal information, such as:
- Name and Contact Information
- Account Information
- Identification Information
- Financial Records
- Transaction History
Protecting this information is critical to regulatory compliance and member confidence.
Transparency Strengthens Confidence
The majority of members anticipate that banks and credit unions will share information with them regarding the organization’s policies, the services offered, and the measures taken by the institution to secure the member's personal information. Through open communication about policies, services, and protection, members are able to have a better understanding of how the institution manages their information as well as the measures in place to keep that information safe and secure.
Financial institutions provide the following elements to build trust:
Clear policies regarding privacy
Educational resources regarding security
Timely communication to customers
Fraud prevention programs
Responsive customer service
All of these elements work together to build a stronger relationship between the financial institution and the community.
Modern Banking Technology
Due to the ongoing evolution of technology, the way people interact with banks and credit unions has changed dramatically. As mobile banking, electronic payments, remote access to accounts, and online loan applications have become standard across the financial services industry, they improve the level of service offered by institutions while also requiring institutions to manage information properly and securely.
In order for financial institutions to maintain their position in relation to establishing and keeping customer trust over the long term, they must continue to evaluate the way they collect and manage customer information as technology continues to evolve. Those financial institutions that have been most successful in maintaining their balance of innovation and security have created a greater opportunity to retain their customers over a longer period of time.
Where To Go From Here
Trust will continue to be a vital component of consumers’ decision process when selecting a financial institution as financial services evolve further. When members consider opening their first savings account, applying for a mortgage, or preparing for retirement, their trust in the financial institution can be major determinants in those choices.
Historically, credit unions built member loyalty through the strength of their relationships within the communities they serve and by offering members the kind of individualized service that meets their needs. As more of our interactions are taking place in a digital world, credit unions’ ability to maintain member trust is likely to hinge on their ability to provide transparency, be responsive through communication efforts and use appropriate means to protect sensitive member information.
Most importantly, member trust is not developed through one instance; it is built over time through consistency of service, accountability and how well it protects the interests of its members and the communities it serves.
