A recession in 2023 is increasingly likely, and economists now place a 70% chance that the United States will fall into a recession in the next few months, according to Bloomberg.
Although there is no good time for a recession, many consumers are facing many financial problems: COVID-19 stimulus is over, commodity prices have increased and interest rates have increased. Now more than ever, it’s important for credit unions to make it a priority to guide their members through financial tools and habits. Here are three ways that credit unions should consider in 2023 to help improve the financial success of their members:
1. Strengthen relationships with members of the church through financial education.
According to a study conducted by Capital One, 77% of Americans feel worried about their financial situation, making it possible for their financial institutions to provide support when it is most needed, offer training to reduce this risk and actually become a trusted advisor in the long run. For example, credit unions can create free financial education programs, such as webinars, guides and tutorials, to help in their people to better understand financial matters and make better decisions about savings and investments in difficult economic times. Credit unions that focus on providing members with the tools and resources to improve their financial health will have a lasting benefit. holier than those who will not be found in the coming year.
2. Leveraging data to generate prior validation loan offer.
It will be more common for credit unions to use new technology to automate the loan approval process, allowing for a personalized offer based on the borrower’s data. Modern loan applications use data and algorithms to analyze the borrower’s credit and display a list of pre-approved loans. authorized. These platforms can be operated entirely online, allowing borrowers to accept loan offers and receive funds in minutes. Having different offers that qualify customers can be very beneficial to them by helping to remove the uncertainty that many feel when applying for loans, only to be rejected later under line. Additionally, by eliminating the credit application process in favor of automated credit approvals, the credit union can provide a seamless experience. buy-buy-buy-buy-buy customers need.
3. Creation of special loan offers and services.
The development of pre-approved credit offers mentioned above, the increase in automatic financing allows the lender to providing personalized services for the needs of each individual, unique and “out-of-box” solutions that were previously only possible with fintechs. supplies. Borrowers may feel a higher level of customer satisfaction when their organization takes into account their needs by offering a service that best suits their financial situation. This can be achieved by offering a variety of products and services, providing excellent customer service and responding to customer feedback. In addition, special loan offers can also help lenders reduce defaults, as borrowers will be more able to afford their loans. when the conditions apply to their financial situation. For example, not everyone needs a car loan that can fit into a foreign loan. Lenders may consider factors such as a candidate’s credit score, debt-to-income ratio, down payment and other requirements for a loan. unique to that member.
Looking ahead to the coming year, credit unions should focus on empowering members to take control of their financial lives and make informed decisions. good that leads to long term financial stability and security. It is important for credit unions to be flexible and work with members to find solutions that meet their needs and help them weather the rough seas ahead. Combining the use of modern technology with the data currently available to credit unions will enable these institutions to provide digital information to leapfrog their competition and strengthen relationships that last.
Tony Salamone President CuneXus Perpetual Offer Santa Rosa, Calif.