Credit unions have continuously differentiated themselves by keeping their primary focus on relationships, not scale. However, as digital banking capabilities mature and product features continue to evolve across the industry, standing out, and remaining top of mind (and wallet), has become increasingly difficult.
This is where customization and member-facing personalization, particularly at the point of payment, deserves renewed focus.
Over the course of several studies, Gallup research has shown that as much as 70% of consumer purchasing decisions are emotionally driven, and that emotional connection is a significantly more accurate predictor of loyalty than mere satisfaction alone.¹ For credit unions, this keen insight reinforces a staple truth of the industry: members don’t build lasting relationships simply because of rates or convenience alone, but because they feel recognized and valued by an institution.
One of the most glanced over opportunities to create that bond on an almost daily basis is card issuance.
ATM, debit, and credit cards have consistently been among the most frequently used member touchpoints over the past 30 years. They’re physically handled almost daily, used a fair amount of the time in public settings, and are closely tied to moments that matter to their owners for a variety of reasons - from everyday purchases to major life events. Yet, despite this level of connectivity, many cards tend to remain visually generic in favor of hyper-detailed corporate branding, offering little differentiation in an individual’s wallet.
Focusing on personalization in a member’s daily touchpoint to your institution can change this dynamic by miles. When members see something that feels familiar or meaningful in their hands, it creates a sense of immediate connectivity. This instant level of attachment (whether it’s top of mind or subconscious) can heavily influence a cardholder’s behavior: cards that feel special to their owner are highly likely to be used more often, shown off to others, and retained longer. The uptick in usage can easily support increased interchange income for credit unions while deepening engagement that helps reduce attrition.
Personalized customization also extends far beyond member accounts. Members who are small business owners in particular can take advantage of this ability to help in the scaling of their own success by using customized cards as functioning mobile brand assets, which reinforce their business’ identity at the point of every transaction. Within local communities especially, that strong and consistent visibility bolsters both potential business relationships and a credit union’s reputation.
From an operational standpoint, this concept may sound tedious, but personalization does not have to come at the expense of efficiency. Today’s personalized card customization programs are a relatively simple way to get into the minds of your members, and are scalable and easy for member use. Most even give financial institutions reporting insights connected to tracking data for usage, engagement, and overall program performance so that leadership teams can better assess ROI and promotion strategies.
At United Solutions Company, we have seen so many of these principles in real-time action through our My Picture Card program. This program allows accountholders to personalize their ATM, debit, or credit cards with the images that truly mean the most to them. One of our longtime clients summarized the impact of this on their credit union by simply saying: “Our members love it.” That response is so reflective of what many credit unions are rapidly discovering - when members feel personal attachment to the card in their hand, it gets used more.
In our current hyper-competitive financial landscape, personalized customization isn’t solely about novelty. It’s about relevance. And when credit unions take the time to intentionally create emotional connections at daily touchpoints, they positively reinforce the relationships that have always set them apart.
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Sources:
¹ Gallup, Customer Brand Preference and the Role of Emotion
https://www.gallup.com/workplace/398954/customer-brand-preference-decisions-gallup-principle.aspx
