Lending a Hand: Empowering CU Members in a Challenging Economy

Credit unions (CUs) consistently earn high marks for trust and service, but that status has come under pressure. With many CU members navigating financial stress, expectations have increased for digital services that include budgeting tools and personalized support where and when it matters most.

Forward-thinking credit unions are responding, updating legacy systems and investing in digital innovations to meet rising member needs. Members clearly appreciate the CU value proposition and caring community of advisers, but efforts must continue. Achieving strong satisfaction among all members — regardless of their circumstances — is CUs’ best guarantee of engagement in a changing financial landscape.

• CUs Struggle to Reach Financially Unhealthy Members
• Personalized Service Can Set CUs Apart
• Innovation Supports Members Facing Financial Stress
• Deepening Member Engagement Amid Financial Challenges

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CUs Struggle to Reach Financially Unhealthy Members

Credit unions lead banks in satisfaction, trust and service — but that edge fades for members facing financial instability. These members now form the majority of CU membership, placing pressure on CUs to deliver more targeted, timely support that builds real resilience.

Financial uncertainty reshapes member needs and CU response strategies.

Velera CEO Chuck Fagan says consumers are navigating mixed signals — balancing optimism with concern about inflation and rising costs. This shifting mindset makes predicting behavior harder, but it clarifies where CUs can help. Financial education, budgeting tools and support systems matter more now than ever for sustaining trust and engagement with CU members.

69%

of CU members report poor financial health, which limits satisfaction even with institutions they trust more than banks.

Satisfaction stays high, but financial stress holds back CU members.

Credit unions continue to outperform retail banks in satisfaction across all categories, including trust and problem resolution. However, financially unhealthy members — who now represent the majority of CU membership, at 69% — report lower satisfaction. This points to a widening engagement gap. Among healthy members, satisfaction scores average 788. Among financially unhealthy ones, the score drops to 702.

Digital performance shows a similar split. While CU digital channels beat banks overall by 45 points, satisfaction with mobile apps is slipping due to unclear interfaces, limited features and navigation issues.

Credit unions prioritize legacy upgrades as digital gaps widen.

While most financial institutions (FIs) focus on enhancing consumer-facing technologies, credit unions have prioritized modernizing their core infrastructure. Nearly half cite legacy system upgrades as a top priority. Limited scale and funding delayed past investments, but that’s changing fast. With engagement slipping among financially stressed members, catching up on foundational systems could be key to unlocking better digital experiences.
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Personalized Service Can Set CUs Apart

Credit unions win loyalty by offering more personalized service than banks. However, many members still feel disconnected, suggesting personalization efforts remain inconsistent.

Personal connections matter, but many CU members still feel unknown.

56%

of CU and community bank users report having no personal relationship with their credit union.

Credit unions outperform national and online banks in forming personal connections — but not by much. More than half (56%) of CU and community bank users still say they’ve never had a true relationship with their provider, compared to 65% and 66% of national and online bank customers, respectively. That weakens a core strength of CUs and leaves room for others to compete on service. Members who feel disconnected are more likely to switch providers or underuse their services. CUs cannot rely on reputation alone — personalization must reach each member, not just reflect the brand.

Credit unions modernize with members and younger users in mind.

Credit unions are updating legacy workflows to match rising member expectations. For example, Greater Nevada Credit Union (GNCU) streamlined its loan payments system after members voiced frustration, cutting call center load and boosting satisfaction through better user experience (UX) and integration.

At the same time, FinTech partnerships are helping CUs keep pace with digital-first habits. Younger consumers expect personalized tools — powered by artificial intelligence (AI) and automation — not just friendlier service.

Digital personalization lags despite rising demand for tailored service.

In a November survey, half of FI users said they’d switch their primary institution for more personalized guidance. However, according to another study, few CUs have transformed key engagement tools. Chatbot and video agent upgrades remain limited, and AI personalization is rarely in place or even planned. As consumer expectations for these experiences rise, the gap between member needs and digital execution could quickly widen.

Beyond feeling known, members want financial interactions that reflect their goals and context. Bridging that divide will take more than empathy — it will require strategic, tech-enabled follow-through.
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Innovation Supports Members Facing Financial Stress

CU members use cards to manage day-to-day essentials, creating key opportunities to boost their engagement. Innovation around rewards, financial wellness and mobile-first tools is helping credit unions support members under strain, but gaps remain.

CU heritage and innovation converge to address modern financial stress.

Credit unions were built to serve communities through trust, inclusion and support — values no less relevant in today’s market. Today’s CU members don’t lean on cards for extras. Instead, they rely on them to cover basics like groceries, rent and utilities for an average of 4.6 expense types, according to one PYMNTS Intelligence study. Another study confirms that 63% of members use their CU-issued cards to purchase groceries, and 37% use them to cover utility bills. These purchasing patterns reflect household realities, and that makes card-based loyalty stickier. With more than half of CU consumer members saying that financial incentives and rewards are the most important factor when choosing a credit card, CUs have an opportunity to solidify engagement with their members by offering rewards for using their cards for these essential purchases.

63%

of CU members use their cards to buy groceries because essentials — not extras — now drive engagement.

Even as members depend on their CUs for essential spending, many still find digital experiences lacking. While credit unions’ digital channels score higher than banks’ overall, satisfaction with CU mobile apps has declined — driven by unclear information, a limited range of services and poor navigation. Only 52% of CUs consider their digital member engagement mature, and  45% have introduced financial wellness products and services in the past three years. Structured innovation pipelines — member feedback, testing and iteration — are becoming differentiators, especially for smaller CUs with limited internal capacity.

CUs expand personalization with digital tools to grow savings and fund causes.

To illustrate, BrightStar Credit Union’s new partnership with Spiral, announced in April, will let members round up purchases and automatically save the difference or donate it to charity. BrightStar’s integration of Spiral’s platform personalizes giving by letting users choose causes, track impact and receive donation reports. These features, available within members’ digital banking experience, reflect a broader shift in CU strategy: meeting members’ financial needs while deepening engagement through shared values and flexible digital tools.

Tech partnerships help smaller CUs modernize payments and card features.

Velera’s collaboration with Zelle shows how smaller institutions are scaling innovation. For example, Zelle integration gives minority depository institution (MDI) CUs access to fast, convenient peer-to-peer (P2P) payments — features members increasingly expect. Meanwhile, Velera’s new Card on File solution brings cardholder upgrades that support virtual provisioning and easier management of stored payment credentials at more than 115 merchants. These investments close the gap between what members want and what CUs can offer — without requiring massive internal buildouts.

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Deepening Member Engagement Amid Financial Challenges

Credit unions are built for moments like this — when financial stress runs high, trust is scarce and people need practical, human-focused support. However, legacy alone isn’t a strategy. As member needs and expectations evolve, even the most mission-driven institutions must innovate faster and with more structure.

To achieve high satisfaction for all members, credit unions should consider the following strategies:

• Build card programs that reward essential purchases and reflect real-world member needs.
• Prioritize digital tools that simplify onboarding, servicing and card management, especially across mobile experiences.
• Scale financial wellness tools — like budgeting and goal tracking — that support members through economic volatility.
• Systematize member feedback and innovation testing to align digital upgrades with lived experiences.
• Partner with technology providers that speed time to market without compromising personalization.

Credit unions don’t need to abandon their values to compete. They simply need to operationalize them in ways that meet members where they are. By embedding empathy into digital tools, prioritizing essential card spending and scaling financial wellness support, CUs can turn their mission into tangible value for members facing economic uncertainty. Doing so deepens engagement, sustains trust and empowers members to thrive — no matter the economic climate.

Credit unions are uniquely positioned to support members during times of financial stress, but reaching those who are most financially vulnerable requires more than good intentions — it demands innovation, empathy and personalization. By leveraging data to deliver tailored solutions and proactive financial guidance, credit unions can deepen engagement and build lasting trust. Personalized service isn’t just a differentiator — it’s a lifeline for members navigating financial uncertainty.”

Jeremiah Lotz
Senior Vice President, Enterprise Data & Experience Design, Velera

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