PYMNTS Intelligence: Why Omnichannel Personalization Is CUs’ Mandate for 2023

As consumers grow more dependent on seamless self-service and the flexibility of eCommerce, they expect their financial institutions (FIs) to deliver the same kinds of convenient banking innovations they experience when shopping. Fully integrated and mobile-centric functionality is central to this type of consumer journey, which requires credit unions (CUs) to meet members fully wherever they are — whether on a website, at a branch or in an app.

Consumers increasingly expect consistency of access and experience across channels — but a consistent experience must be one that satisfies their needs. More and more, consumers define a satisfactory experience as a personalized one. This month, PYMNTS examines why omnichannel personalization will be the innovation goal for CUs in 2023.

Omnichannel Banking: The Opportunity for CUs

There is a growing consensus that omnichannel is banking’s future, yet a November report asserts that what many banks consider omnichannel banking services are really only multichannel — that is, without consistency and seamlessness between channels. Specifically, 35% of surveyed banks and CUs that profess to offer omnichannel account opening lack the ability to start an application in one channel and continue it in another. These siloed consumer journeys cannot truly be considered omnichannel.

With only one in 10 FIs offering true omnichannel account opening for both consumers and businesses, CUs have an opportunity to gain ground — despite the 25% of branch staff who are threatened by digital account opening channels. FIs are urgently planning implementation of omnichannel account opening for consumers (50%) and businesses (27%) in the next 12 months, and those that can provide a seamless experience will win more members and customers.

Leveraging Technology for Banking Personalization

CUs have a long-standing mission and reputation for putting members first, but this does not mean they do not have ground to make up when it comes to personalization. In particular, the application of technology to personalize banking cannot be neglected in 2023. A mere 45% of CUs use personas and member journeys to inform technology choices, and only 43% are applying internal and external data to deliver outcomes. While CUs are traditional relationship experts, they can still learn from Big Tech and major eCommerce players about relationship-building that goes beyond the transaction to know the consumer’s needs even before the consumer does.

Some 72% of FI customer experience leaders note how more personalization options increase customer loyalty. This shift in approach is even more important in a difficult economy, as a deeper, more personalized experience can help support consumers’ financial needs.

Financial Wellness: A Case in Point for Personalization

With a recession looming, financial literacy and wellness are key support areas that CUs can provide, as consumers increasingly expect their FIs to take care of them during financial difficulties. Members want to feel connected, that they are being looked out for and that they are evolving together with their CUs. For CUs, guiding members toward financial wellness will be a major theme of 2023. Harnessing the right data to personalize each member’s journey can create the kinds of experiences consumers want.