5 Ways to Increase Credit Union and Bank Customer Retention

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Providing top notch customer service has long been a focus for banks, credit unions, and financial brokerages, as research reveals that good customer service is the main reason behind customer loyalty to a financial institution. However, research from Harvard Business Review (HBR) adds that good customer service must be paired with valued services that offer customers financial solutions to their problems and frustrations to effectively improve credit union and bank customer retention.

In a competitive financial solutions market, many financial services businesses are seeking to increase credit union and bank customer retention by offering loyalty programs, products, and services outside of their original business lines. But your company may want to tap into offerings beyond standard life insurance, loan services, and financial solutions to deepen the customer experience with a level of care and the right valued services that build a loyal community.

Below are some valued services your financial institution may want to consider to drive credit union and bank customer retention. And for even more information on how your institution can maximize profit and minimize cyber risk, download our white paper The Impact of Cybersecurity Incidents on Financial Institutions.

1. Financial education services (example: EverFi financial learning solutions)

Investing in your customers’ financial literacy shows an interest in building a stronger financial relationship. Additionally, new statistics show that 70% of customers would give their financial institution more business if they were provided with better financial guidance.

Why? Informed customers are often empowered, and by offering exclusive financial education services, your company has an opportunity to engage with your customer in positive, empowering ways—thus increasing loyalty.

2. 24-hour live video customer service (example: Vidyo video banking)

According to recent research from Forrester, being able to speak to a live person still ranks highest as a preferred touchpoint for consumers, and customers may need assistance outside normal business hours. With video becoming a mainstay in business digital transformation, adding video banking services can offer a personal touch when visiting brick-and-mortar branches is inconvenient or not possible.

Why? Convenience removes common customer frustrations, and by eliminating logistical obstacles, your company can easily increase customer satisfaction and retention rates.

3. Integrated budgeting and savings tools (example: eWise Money Management)

With 7 out of 10 Americans having less than $1,000 in their savings accounts, providing your customers with integrated money management and financial solutions, your customers gain valuable insight into their spending habits and saving patterns. This can influence positive behavioral changes in your customers’ relationship with their financial assets and translate to healthier spending habits.

Why? No one likes feeling anxious about their checking and/or savings account balances. By providing an integrated tool, your customers will hopefully feel more confident about their finances and also save time by not having to log into yet another app. When your company focuses on making customers’ lives easier, customer loyalty and retention remains high.

4. Tax relief services (example: Optima Tax Relief)

The IRS reports about a million taxpayers fall behind on their taxes every year.  And given the IRS’s extraordinary collection powers, tax debts can quickly become ruinous to those who don’t resolve the issue properly and promptly.  A qualified tax assistance provider can be the deciding factor in helping a consumer stay on solid footing and avoid a financial catastrophe.

Why? Providing your customers with solutions, particularly when they’re facing difficult challenges, creates trust and earns loyalty that can turn even typical interest rate shoppers into life-long customers.

5. Identity theft protection services that go beyond credit monitoring (example: GGA Identity Protection Services)

In 2016, there were a reported 1.2 million phishing attacks in the United States alone. Going beyond offering credit monitoring alerts, comprehensive identity theft protection and resolution services that include phish-blocking and anti-keylogging software provide customers with a greater sense of control – not only over their financial assets but over their online identities.

Why? When companies help their customers address a top concern, such as “loss of control” over finances and data, customers are more likely to be loyal to the company that provided them that extra peace of mind.

While these valued services may be outside your company’s wheelhouse of regular business, you can strategically partner with industry leaders who will guide your company through the implementation and management of valuable services that will drive customer retention.

At Generali Global Assistance, we have over 30 years of assistance experience and understand that personalized services and products can enhance your customers’ experience with your company and translate to higher retention. Increase your credit union or bank customer retention with people-first services and engagements that your customers will appreciate. For even more information on how your institution can maximize profit and minimize cyber risk, download our white paper The Impact of Cybersecurity Incidents on Financial Institutions.