Winning the top-of-wallet race requires innovation, nimbleness and flexibility, and that means credit unions have to start thinking like Silicon Valley startups. The Silicon Valley mindset is one of creating better solutions by testing assumptions, questioning the status quo, taking measured risks and iterating rapidly. Credit unions need to implement forward-thinking credit product ideas and new ways to engage consumers with better ways to manage their money. For those that act quickly, there is a great opportunity to differentiate with unique features and solutions tailored to the needs of today's small businesses and consumers who demand sophisticated digital capabilities. We see three key areas where innovative credit solutions can help credit unions offer more personalized experiences that give members more control over their finances:

Budgeting and eliminating overspend. Cardholders can set budgets and spending limits with card controls available online or via a mobile app. For example, a member planning a trip overseas can turn on or off foreign currency limits and set limits on spending. Controls can even be set on merchant categories and locations, both in person and online. Smart consumer protection features like these can help transition budget-conscious members who typically use their debit cards to active credit card users.

Reducing fraud. Easy-to-use card control and notification features allow cardholders to sign up online or via mobile banking apps. Members can receive real-time two-way mobile alerts via push SMS or an email warning of suspicious activity, empowering them to communicate with their credit union or community bank and take action right away. For the financial institution, involving the cardholder in the fraud detection ecosystem adds an additional layer of security.

Improving member engagement. Today's payment technology enables more sophisticated engagement solutions that go beyond traditional loyalty programs. Modern payment processing solutions recognize important, contextual details about a consumer's individual commerce journey and can trigger actions such as special offers based on that information. This enables real-time upsell opportunities. For example, when a member uses her card to purchase a vacation package for her family, she can receive a promotional offer for travel insurance from her credit union.

Instant Insights /

Think Like a Silicon Valley Startup

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