Retain Credit Union Members Through Digital Investing

As next generation investors turn to digitally-enabled fintech platforms accessible right from their smartphone, membership retention has become a challenge among credit unions.

According to CU 2.0, 25% of credit union members churn within the first year, and with an average attrition rate of 11%, that means 40% of new accounts leave before they become profitable.

With so little time to earn new credit union members’ trust, the earlier credit unions can show their members value, get them engaged, and deliver impactful results–the better.

To achieve this and remain competitive in today’s digital age, credit unions should consider:

  1. Looking for ways to expand member services
  2. Seek a defensive strategy against direct-to-consumer platforms and Automated Clearing Houses (ACHs)
  3. Allow investors and advisors ways to access personalized investment experiences at scale.


Expanding Member Services

When compared to a traditional bank, credit union membership benefits typically include a higher interest rate on savings, lower fees, lower loan rates, and service offerings like financial education, consumer loans, credit cards and more.

While these services and benefits are expected with any credit union membership, examining what competitive services offer is key to remaining competitive in a digital world. Incorporating a seamless digital experience into your offering may be just the thing that members are looking for. After all, accessibility isn’t just about geographics these days – investors want access to their advisor and a full financial picture immediately available through digital means.


Defensive Strategy Against ACHs & Direct-to-Consumer Platforms

Direct-to-consumer platforms like Betterment and Robinhood are going to continue to grow in popularity as they build solutions to enable all investors–whether they have $10 extra to invest or $10M–to put their money to work with little friction.

To develop a defensive strategy against ACHs & direct-to-consumer platforms, credit unions need to think about the benefits these platforms are able to offer their users, such as:

  • Seamless digital account opening
  • Self-guided investing experience
  • Access to experts, if needed
  • Ability to invest toward specific financial goals

Incorporating a digital solution that enables credit union members to take similar actions could be the missing piece of the puzzle.


Access Personalized Investment Experiences

Many investors want to be guided along their journey while others want to do it themselves. The ability to offer personalized investment experiences will attract a wider range of investors seeking a cost-effective solution for their financial lives.

We built FusionIQ to help you capitalize on the momentum you create when you approach your credit union’s business growth with a future-forward focus.

With FusionIQ, you can unlock modern digital wealth management capabilities, such as:

  • Friction-Free Digital Account Opening: Today’s investor doesn’t want to sit in an office filling out mountains of paperwork. FusionIQ’s digital-next experience empowers investors to onboard, open and fund accounts in minutes, not days.
  • A Dual Journey: Some clients would prefer a more independent approach to investing, with the ability to lean on professional advisory guidance only when necessary. FusionIQ’s dual journey platform empowers advisors to be as involved as they need to be in client onboarding and investment management, offering a self-directed approach for investors.
  • Access to a Digital Supermarket: FusionIQ takes the idea of a TAMP or model marketplace to the next level, bringing the full spectrum of investment options together onto a single dashboard–a digital supermarket– at a fraction of the cost.

Want to win the next Gen investor to your credit union? 

Download the Credit Union Guide.

John Guthery, CFA <br> Chief Investment Officer
John Guthery, CFA
Chief Investment Officer

John is a highly respected investment executive, bringing more than 27 years of experience to his role as Chief Investment Officer for FusionIQ. As CIO, John focuses on developing advisor platforms and business lines including finTAMP and Digital Model Marketplace. He also contributes to FusionIQ’s thought leadership and market analysis.

John’s extensive financial services background includes leading market research, due diligence and platform enhancements for top-tier wealth managers including LPL Financial, where he spent 19 years running product research, Park Avenue Securities, Voya Financial and WP Carey where he helped to design and manage public and private real estate funds and public BDCs. | Connect on LinkedIn

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