Credit unions (CUs) remain strong, despite the many challenges they face. The G.19 Statistical Release, “Consumer Credit,” recently found that CUs hold $64.4 billion in credit card debt and $382.9 billion in car loans, a 6.9 percent and 4.1 percent year-over-year increase, respectively.
However, it is a quickly changing industry, thanks to digital banking. Its omnipresence is altering how members want to interact with their CUs, though regulatory and compliance issues often mean that members cannot reasonably expect the same lightning-fast interactions they might get from banks and FinTech firms. CUs are working hard to meet these expectations, though, leveraging tactics — such as emotional marketing — to get ahead.
In the December Credit Union Tracker, PYMNTS explores the latest in the world of CUs, including new regulations in Ireland, charitable CU donations for the holiday season, and how emotional marketing is leveling the playing field between CUs and their competitors.
CUs are working to build community ties, especially during the holiday season. Nine member CUs of the Southern Michigan Chapter of Credit Unions each donated $25,000 to a charity that pays off medical collection debts. The CUs were able to eliminate more than $2.5 million in debt, granting former debtors far more access to loans and other banking services.
However, an increased emphasis on members’…