Credit unions are doing more and more to connect with their members and give them what they need and want online. One of the things they are doing is offering the option of faster payments. Through a variety of options, credit unions are offering their members faster payment services and still allowing for their own processes to be incorporated. One credit union may operate them for withdrawals and some even charge a small fee but the sentiment remains the same; they are embracing faster payments to give their members a great online experience with their credit union.
So, let’s look at some of the benefits to the members and to the credit union. We will admit this could have turned into a long list, but we’ve picked some of the main reasons that you would want to offer your members this as part of your service. From the speed of availability to attracting in new members, you’ll find that offering your members a faster payment service is doing a lot more for your credit union than you might think. So, what is it that faster payments are giving your members?
Members are able to send and receive money quickly and depending on what processes your suppliers and your credit union has; they can often have their money within a few hours if not instantly.Allowing this type of access to funds is giving credit union members more financial freedom. If a member is struggling, then allowing them to transfer funds into their bank account could be the only thing standing between them and going into their overdraft. Allowing faster payments options can also stop some unbanked or underbanked customers from going into debt as they often turn to some forms of borrowing to obtain cash quickly.
You might not realise but offering a faster payment service is helping you to build relationships with your members.In an increasingly competitive market, you’re offering something that is stopping members from going elsewhere to obtain this type of service. In turn, you’re creating a long-term relationship with reliable services. You’re also remaining relevant as everyone turns to more digital ways of living and you’re adapting to this. Your members will see this and that you're evolving for their benefit.
Many of your members will enjoy their visits to your branch to withdraw their money but there will be a percentage who want an online experience. For these online members, being able to withdraw their money is a must. Getting an instant notification to tell them that their payment has been a success is what your new generation of members will want – millennials especially are impatient, so they want all of their information immediately.
An added bonus is that this is going to free up some of your advisors’ time for other tasks as they won’t need to spend that extra time processing these withdrawals manually.
Your faster payment service may also allow members to gain access to their money at any hour of the day. The requested payment is sent though an API so members can send their savings to their nominated bank account and receive it even outside of business hours. This is a huge benefit for those who need quick access to their money if you want to offer this to your members.
We’re sure you’ve identified some of the benefits from this list that you think your members would be happy about and remember, this is just a short list! Credit unions are adopting more technology and faster payments are a huge part of this. To evolve we need to give the current and upcoming generations what they want, and this is for products and services to be instant. Adopting faster payments will help you attract in new members as well as serve your current members in a new and digital way.
Not every credit union needs to follow the same faster payment processes, so timings and transactions are often different but incorporating faster payments in some way means you’re well on your way to creating a great member experience. This is something we always encourage the credit unions we talk to to think of when looking at digital transformation.You’re there to serve your members so give them the best experience possible!
To learn more about faster payments or talk about digital transformation, get in touch with us today.