By Ray Birch
EAST LANSING, Mich.—By the time a struggling consumer gets a push notification on their phone, it's usually an offer to borrow money. Michigan State University FCU is trying something different: using artificial intelligence and geofencing to deliver nearby ways to save money instead.
The East Lansing-based credit union has partnered with Chicago fintech SpringFour to send members location-based prompts directing them to vetted nonprofit and government programs that can reduce everyday expenses—from utility assistance and food programs to housing counseling, prescription discounts and employment services. Rather than marketing another financial product, the notifications are designed to help members cut household costs before financial problems become loan delinquencies.
"We're flipping the script," said SpringFour Founder and CEO Rochelle Nawrocki Gorey. "Think of all the push notifications consumers receive every day trying to sell them products that cost money. Instead, MSUFCU is using the technology to say, 'Here are resources in your community that can help you save money.'"
The effort relies on geofencing—the creation of virtual geographic boundaries that trigger an action when a mobile device enters or exits a defined area. In MSUFCU's case, the trigger is an invitation asking members whether they would like to see financial health resources near where they live or work. If they opt in, they enter their ZIP code and select categories such as food savings, utility assistance, housing, childcare or healthcare. The platform then displays a list of nearby nonprofit and government organizations that may be able to help.
The partnership began as a pilot in MSUFCU's innovation lab in October 2024 before expanding credit union-wide about a year ago. Gorey said member response has exceeded expectations, with repeat users, high interaction rates and stronger engagement than the credit union anticipated. She said the program has also emerged as a member-retention tool because it demonstrates the credit union is willing to help even when the solution isn't another loan or deposit product.
"What they're seeing is increased member engagement with the tool," Gorey said. "They're also seeing it as a retention tool and as a way to increase trust with their members."
30 Spending Categories
The resources span 30 spending categories, with some of the most frequently used including food savings, heating and utility assistance, employment resources, housing counseling, home repair services and prescription discounts. Rather than searching the internet for help, members receive a curated list of organizations that SpringFour continually verifies and updates.
"There are a lot of predatory products pushed to people when they're under financial stress," Gorey said. "Instead of seeing products that may cost them more money, they're receiving money-saving tips from their credit union."
The strategy also reflects a broader shift in how financial institutions are approaching artificial intelligence. While much of the industry's AI investment has focused on fraud detection, automation and personalized product recommendations, SpringFour argues the next phase will use AI to connect consumers with practical financial assistance in real time. The company says it delivered more than 8.5 million financial health referrals in 2024 and has found customers who receive referrals are more likely to stay current on payments while organizations report stronger engagement and customer trust.
MSUFCU, which serves nearly 400,000 members, is among a growing number of financial institutions incorporating those tools into member interactions. The credit union's public-facing SpringFour portal currently provides access to thousands of vetted community resources, and if no assistance is available within 35 miles of a member's ZIP code, the system automatically expands the search to state and national programs.
For Gorey, the larger lesson isn't about geofencing or artificial intelligence—it's about changing how financial institutions respond when members begin to struggle.
"Everyone is potentially a day away from experiencing a financial challenge or financial emergency," she said. "Organizations need to make certain they have something in place to help people in good times and bad. By helping people no matter what situation they're in, you're going to end up with a member for life."