MADISON, Wis.—A new report is available that highlights some of the lessons learned and insights gleaned by 10 credit unions that participated in a 20-month Filene Research Institute pilot that sought to learn whether Larky—a mobile tool with location-based smartphone alerts and personalized messaging that offers members free, instant discounts on behalf of their credit union—could drive higher member engagement.
The pilot also tested whether the solution could increase brand awareness and member loyalty while also increasing interchange income, a critical source of non-interest income.
According to Filene, the Larky pilot stems from research suggesting loyal, happy members are more profitable for credit unions. The organization noted that building stronger connections with members is imperative for credit unions in ensuring long-term sustainability.
“Credit unions want to connect with members in their preferred channels in a way that provides tangible and meaningful value to the member,” said Tansley Stearns, chief impact officer for Filene. “Members appreciate receiving discounts from merchants they know and trust and feel good about supporting local businesses. Credit unions in the pilot that committed to regular communication saw high member adoption rates.”
A new Impact brief summarizes pilot results from participating credit unions including Christian Financial Credit Union, Goldenwest Credit Union and Summit Credit Union.
Among the findings:
- Credit card penetration increased 5% among participating credit unions.
- Debit card interchange and penetration saw a marginal increase within participating credit unions.
- Larky helped grow community and small business connections.
Credit unions can learn more about the pilot results in a live webinar to be held on Nov. 1 at 1 p.m. CT. For more information on how to leverage Larky or to set up a customized demo, visit filene.org