A few years ago, helping a member with payments meant explaining the difference between a debit card and a credit card. Today, that same conversation might involve peer-to-peer apps, digital wallets, buy now pay later, real-time payments, contactless options, and increasingly, stablecoins and tokenized transactions. The number of options available to members to move money is growing faster than most people's ability to make sense of them.
This is a member education problem hiding inside a digital experience problem, and it is an important one for credit unions to solve right now.
When members are confused about their options, they do one of two things. They default to whatever is most familiar, even if it is not the best fit for their situation. Or they turn to whoever explains it most clearly, which is increasingly a fintech app, a social media post, or a friend rather than their credit union. In either case, the credit union loses the conversation, and with it potentially the relationship.
The good news is that credit unions have something no fintech can replicate: they know their members. And really knowing your members is the foundation of communicating about payments effectively.
So what should you do? Frame the choice by jobs to be done, not by rail. Think about three member-facing decision filters:
- Speed — When does it arrive?
- Cost — Is it free, or is there a fee?
- Safety — What happens if it goes wrong?
Think about the Amazon model for receiving packages. The member doesn't need to know which carrier is moving the box, or how the routing works. They just need to know where it's coming from, where it's going, how fast they want it, and what they're willing to pay.
Moving money is the same. Which account is it coming from? Where does it need to go? How fast does the member need it to move? Are they willing to pay a fee for speed? And if it's a large sum, are they willing to wait a little longer to make sure it arrives safely?
Lead with member intent, not the payment rail.
Next week, we'll explain the three most complex payment rails: stablecoins, instant payments, and tokenization. Join Filene Fellows Dr. Lamont Black and Dr. Henry Kim on 5/21 (11CT) for a member-exclusive webinar as they share the biggest opportunities, challenges and strategic actions your credit union can take ahead of what's coming.
