Credit unions have a unique opportunity to win over this consumer segment, by offering them the customer care and personal service they felt was lacking among financial institutions. They may have turned to alternative financial service providers for control over their money because they found them convenient and transparent. Credit unions can offer these same benefits for the un- and underbanked if they position themselves in the right way. Here are some tips for appealing to this market:

Consider presenting an alternative to traditional credit and debit cards by offering prepaid cards that provide the ability to pay bills by phone or online, but do not allow consumers to spend more money than they have loaded.
Provide demonstrations on how your online banking system provides members with real-time access to account balances, pending payments and pending deposits, as well as the ability to receive alerts and notifications. Many consumers may simply not know how much control they can have over their accounts or may be unfamiliar with how online banking works. The un- and underbanked may not have reliable Internet access but frequently have smartphones — so credit unions need to make sure their online banking system is mobile-friendly.
Be as transparent as possible. In addition to the legal documents provided about account fees, consider providing a simple, one-page account overview that clearly and simply outlines the parameters of the account and all of the fees.

Make sure your customer experience is as positive as possible, and above all, make sure these consumers know that they are not just another number in the crowd. Keeping communication lines open and taking the time to understand who the un- and underbanked are will prove essential in demonstrating to this group that credit unions can offer them a mutually beneficial relationship.

Instant Insights /

Better Serving the Un- and Underbanked Markets

Related Stories

Recommended For You