Turning Member Data Into Member Value: A Blueprint for Credit Unions
The consumer market is more competitive than ever, but credit unions have an advantage: a deep understanding of their members’ needs.
The economy feels uneven because, for many, it is. While the stock market shows one picture, the reality on the ground is that many consumers are finding their paycheck covers less than before and household budgets are feeling strained.
This economic divide hits younger generations particularly hard. Fifty-six percent of Gen Z is living paycheck to paycheck.1 The financial pressure shows in their behavior: Members are increasingly turning to cash advance apps and buy now, pay later services. In one extreme case, a single member made more than 200 buy now, pay later purchases in just one month.
“For credit unions, this brings up two questions: How can you support members who are feeling financial pressure?” said Becky Summers, Head of Strategic Guidance and Thought Leadership at Raddon, a Fiserv company. “And how can you use data to better understand and meet their needs in a highly competitive market?”
Where data fits in
In the past, credit union branches created familiarity and trust. Tellers knew members’ names, their families and their financial situations. Today’s digital-first world demands a different approach: Data has to take on that role.
“Transaction data unlocks insights about what members are trying to tell us, whether or not they’re having direct conversations with us,” said Summers. “Every payment, transfer and purchase tells a story about member needs, challenges and life events.” Data-driven personalization using transaction history, life stage and member preferences can replicate the “I know you” feeling at scale. When those insights reach both the teller and the technology, every touchpoint can deliver on member expectations across the entire journey, so credit unions can grow without losing the human touch at their core.
The proof is in the performance. High-performing credit unions maintain average household balances of approximately $45,000, compared with $35,0002 for average performers. This growth is achieved not by serving wealthier members but by fostering deeper, data-informed relationships with all members.
1. How can credit unions use data to deliver timely, relevant help to members?
Don’t wait for members to ask for a service – use data to anticipate their needs. Watch for signals in transaction patterns. If a member’s spending spikes, prompt them with budgeting tools. When trial deposits from investment apps like Vanguard or Greenlight appear, that's a signal they’re either investing or managing money for their kids and could use portfolio guidance. If rent payments show up, send resources on saving for a first home.
2. How can credit unions compete on savings rates?
Fintechs and online banks are drawing members with savings rates of 4% or higher,3 which is a difficult rate to match. Instead of across-the-board increases that hurt margins, tie your best rates to your deepest relationships. Reward members who maintain checking accounts, loans or larger combined balances. Bigger balances improve efficiency and strengthen member loyalty.
3. How can credit unions modernize savings products?
Move beyond legacy money market accounts that feel outdated to younger members. Instead, create flexible, mobile-first savings tools designed for digital natives. Younger members expect financial tools that work seamlessly on their phone, with Raddon research indicating 99% of teens ages 14-18 own a mobile phone.4
4. What’s the best way to use branches?
Members are increasingly using credit unions for financial advice, not transactions. This presents an opportunity to train frontline staff as financial guides who can help members navigate mortgages, equity lending and planning, not just deposits and withdrawals.
Parents often lack confidence in schools’ ability to teach financial literacy, yet also doubt their own ability to fill this gap. Credit unions can step into this void, turning branches into education centers that build trust with both parents and their children.
5. Where will the next wave of lending growth come from?
With mortgage refinances unlikely to rebound to recent levels, equity lending represents the most viable lending growth path. But approach it responsibly. Pair equity products with strong financial counseling so members borrow wisely rather than simply accessing cash to cover mounting buy now, pay later debts.
The takeaway
Trust and deposits are the battleground. Digital savvy competitors are winning primary relationships not through better rates but through brand marketing and digital convenience. Yet credit unions have advantages they are not yet fully leveraging. Success requires marrying high-tech capabilities with high-touch service. Data can unlock critical insights, predicting when members need certain solutions, identifying those who need help with debt consolidation and even getting ahead of members preparing to move their money elsewhere.
The key isn’t copying competitors. It’s leaning into what makes credit unions different: empathy, trust and a member-first mindset, backed by smart use of data. “There’s a huge amount of member information that credit unions can leverage,” said Dudley White, head of Core Account Processing Solutions at Fiserv. “Being able to take that data and translate it into insights that actually meet the needs of their members is huge.”
Credit unions that use data to personalize relationships, and deposits to deepen them, will stand out in an increasingly competitive landscape.
1 Deloitte
2 Raddon Performance Analytics with top 10% of performers of 200+ Credit Unions (of Financial Institutions) nationwide
3 Bankrate
4 Raddon
