This article discusses the need for credit unions to shift their approach in order to improve people's financial health and happiness. It highlights the impact of the COVID-19 pandemic on the economy and individuals' financial well-being. The article emphasizes the disconnect between headlines about economic growth and the reality of rising household debt and financial struggles. It suggests that credit unions should focus on measuring and improving members' financial health to help them achieve happiness. The author also mentions the importance of bank-fintech partnerships in bridging the financial literacy gap. Overall, the article calls for a reevaluation of credit unions' products, services, and leadership strategies to better meet the changing needs of their members.
A study mentioned in the article found that credit unions are leading banks in innovation, scoring 69 out of 100. This score is just below the average of 70 for all 200 brands in the study. Despite being perceived as falling behind on innovation, credit unions scored higher than most banks. The article highlights that credit unions offering cross-border remittances have the potential to generate significant funds. It also mentions that upgrading and consolidating back office systems can help credit unions achieve cost savings and efficiency.
The article provides an example of Vantage West Credit Union, which prioritized a seamless digital experience and data-driven lending decisions. As a result, the credit union diversified its loan portfolio, acquired 1400 new members in 6 months, and built flexibility to withstand economic cycles.
The article concludes by emphasizing the importance of innovation for credit unions to stay competitive in the financial industry. It calls for credit unions to rewire their approach and focus on improving members' financial health and happiness.
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