WASHINGTON—Credit unions now have a big opportunity to capitalize on consumers’ desire to work with trusted local financial institutions, which is just the story CO-OP Financial Services sought to tell in detail during the recent CUNA Governmental Affairs Conference.
At a trade show booth designed to encourage credit unions to “Seize the Now,” attendees walked through several exhibits that presented this growing credit union opportunity, how CUs can leverage it, and what CO-OP is doing to assist CUs on this journey.
A series of audio/visual and interactive presentations focused on four key trends that credit unions can exploit with CO-OP products and programs: consumer demand for personnel payment safely and security; mobile/virtual payment services; greater personalization of products, and institutions exhibiting social values as well as good value in financial services.
“We are showing that it’s the year of the credit union,” said Samantha Paxson, chief marketing officer. “2015 is about credit union values and we really think CUs have a unique space in the market where consumer behavior is going.”
Samantha Paxson
Consumers Like Local
Paxson said a growing number of consumers desire to work with brands, companies and financial institutions that are focused on being local, involved in the community and mission driven.
“Credit unions are truly hip today,” said Paxson. “This is where Millennials are going and wherever Millennials go every other generation follows in the next six months.”
In addition to a local focus, consumers also want technology and scale, and are looking for their financial experiences to be “fast, brilliant and connected,” said Paxson.
A feeling that the FI is protecting their personal data from fraudsters plays an important role in a positive consumer experience, offered Caroline Willard, EVP, markets and strategy.
To illustrate to attendees how much fraud is taking place, one of the booth’s TV monitors connected to the Norse website’s live stream of real-time fraud attacks targeting the U.S.
Caroline Willard
Willard emphasized that a shift is taking place among consumers and their mindset toward fraud.
“Instead of just expecting that someone will make them whole on fraud on the back-end after fraud happens, now consumers don’t want fraud to happen in the first place,” said Willard, noting that CO-OP is assisting CUs with EMV and tokenization as part of the anti-fraud fight.
Cardholders Fight Fraud
But Willard also shared that consumers in growing numbers want to play a role in fighting fraud.
“We are finding, too, that consumers are feeling a greater sense of ownership in fighting fraud. That is new,” said Willard. “They used to be more complacent.”
She said CO-OP is paying close attention to the trend. “With our CardNav product (which allows consumers to set card payment parameters and turn the plastic on and off), we are giving consumers their own fraud-fighting tool in the palms of their hands.”
Willard emphasized that in addition to payments security, consumers increasingly want the payments experience to be “easy, fast and brilliant.”
Willard shared how CO-OP’s RealPay and Sprig payment solutions hit that mark for credit unions, allowing consumers to move good funds in real time, inside and outside the credit union network.
“So we are not just talking about moving money among our interconnected group of credit unions, but now we layer on FIS payments and it gives us 50 million endpoints,” said Willard. “We can move money across any institution, from person to person—we’re giving credit union members ubiquity in payments.”