Credit Unions Build Member Trust Through Digital Empathy

Financially stressed individuals now form the majority of credit union (CU) membership. While credit unions consistently outperform retail banks in satisfaction, trust and service, the edge diminishes for members grappling with financial instability, as PYMNTS Intelligence and Velera found in a recent Credit Union Tracker.

For credit unions to reaffirm trust, inclusion and support by using digital innovation to become a true “port in a storm” for their members.

The extent of this financial stress is starkly quantified: 69% of CU members report poor financial health.

This widespread financial pressure directly impacts member satisfaction; among financially healthy members, satisfaction scores average 788, while for their financially unhealthy counterparts, this drops significantly to 702.

Credit union members are not using cards for luxuries; they rely on them for day-to-day essentials like groceries, rent and utilities, covering an average of 4.6 expense types. For instance, 63% of members use their CU-issued cards for groceries and 37% for utility bills.

There’s a widening engagement gap, pressuring credit unions to deliver more targeted and timely support.

Financial education, budgeting tools and support systems give CUs the ways and means to sustain trust and engagement amid uncertain times.

But 56% of CU and community bank users report having no personal relationship with their credit union. Inconsistent personalization leads to disconnected members becoming more prone to switching or underusing services.

Younger consumers expect personalized tools powered by artificial intelligence (AI) and automation.

Despite demand for personalized guidance, digital personalization efforts like chatbot upgrades and AI remain limited or unplanned within CUs. Bridging this divide requires strategic, tech-enabled follow-through.

The report notes that credit unions are actively updating legacy systems, with nearly half citing infrastructure upgrades as a top priority. This foundational work unlocks better digital experiences. Beyond infrastructure, innovation in card programs and mobile-first tools offers  opportunities to support members combatting financial strain.

Only 52% of CUs consider their digital engagement mature, and 45% have introduced financial wellness products in the past three years.

Forward-thinking credit unions are rising to the challenge. BrightStar Credit Union, for example, partnered with Spiral to enable members to round up purchases for savings or charitable donations, personalizing giving within the digital banking experience. Furthermore, collaborations like Velera’s with Zelle provide smaller institutions with access to modern features such as fast peer-to-peer (P2P) payments and enhanced card management solution.

To achieve high satisfaction for all members and deepen engagement, credit unions must actively engage with their members by scaling financial wellness tools, such as budgeting and goal tracking, to support them through economic volatility.  By “embedding empathy” into digital tools, CUs cement their relationships with members.

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