According Finaltyics.ai’s 2022 Credit Union Digital Maturity Index, only 36 percent of credit unions indicated they use member journeys to drive the business, while 17 percent of respondents completely agreed that their credit union prioritizes digital decisions based on member experience. Those results are at odds with what members want from their financial institution – according to a recent study, 50% of digital banking consumers expect their bank to provide a highly personalized experience. That kind of hyper personalization leads to better engagement between the credit union and member, but why is that exactly?

What is hyper personalization?

Before we get into why hyper personalization works, let’s take a step back and figure out what it is. It’s not just using someone’s first name in an email – it goes way beyond that. It’s about understanding who that person is, what their financial goals are today and tomorrow, and how they prefer to receive information. It’s about getting to know them on a, well, personal, level.

How do you learn about this kind of information when members aren’t coming into the local branch any more for a coffee and cash deposit? It involves taking what you do know about your members into account, and a little assumption as well. For example, say you have a member who regularly deposits money into a savings account. You know they’re likely setting money aside for something important but you’re not sure what – perhaps an emergency fund, a house down payment, or a family vacation. Time to review what other information you have on hand to make some educated assumptions – do they already have a mortgage payment with you? How old are they? Are they single or married? Knowing the answers to those questions can help you paint a picture of your member and perhaps understand why they opened a savings account in the first place. If they’re a single 20-something, they’re likely just starting out and may be saving up for a wedding or a house. Encourage them with financial literacy programs and education that can help them reach their goals faster. Or, perhaps they’re in their mid-40s and married – maybe they’re saving up for some housing projects they have planned. Let them know about your HELOC loans and how to take advantage.

Whatever you think your members need, it’s important to be proactive about how you can help. Your members don’t know your business like you do -- just because they have a checking account doesn’t mean they know you offer auto loans or cash back offers on credit card usage. Assume they don’t know, so be communicative.  

Why hyper personalization works

It all circles back to the main question: How does hyper personalization drive member engagement? Well, when people see their financial institution as trying to help them by providing information that is relevant to their needs in the moment, they’re more likely to engage because it’s top of mind.

It’s important to remember that members are offering a lot of personal information about themselves to their credit unions, and they’ll feel better about it if that information is being used for good purposes – to help them. They’ll want to share more because they trust you are using that information just for them. That in turn leads to a deeper relationship between the credit union and the member, creating lasting loyalty.

If you’d like to create the best possible experience for your members and something else, Larky can help. We deliver personalized push notification campaigns directly through the mobile banking app, resulting in 7x more engagement than traditional marketing methods. Contact us to learn more or schedule a demo to see it in action for yourself.