What’s Next in Your Credit Union’s Digital Journey

The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding what's next in your credit union's digital progression journey. Opinions expressed in this article are of the individual authors and may not reflect the opinions of MeridianLink, Inc.

In a recent webinar, MeridianLink^® and CAMPUS USA Credit Union discussed the trends, challenges, and exciting opportunities shaping the future of credit unions.

The pace of digital transformation for credit unions is accelerating, driven by shifting member expectations, increasing financial needs, and a complex economic climate. Today's consumers, particularly millennials-are demanding more personalized, real-time digital banking experiences, with 76% managing their finances online. But while credit unions like yours are working hard to meet these demands, you're also juggling some tough challenges : economic slowdowns, deposit attrition, and margin compression. On top of that, fintech app usage is on the rise, with over 55% of consumers now using them regularly. It's a lot to balance. To stay competitive, credit unions need to innovate and adapt, all while keeping a firm grip on their financial health and member relationships. It's a delicate dance, but with the right digital lending strategy, you can turn these challenges into opportunities.

In this webinar, Brie Hertel, Strategic Customer Success Manager at MeridianLink, and Rachael Smith, Analyst III at CAMPUS USA Credit Union highlight essential strategies for thriving in this landscape, from data-driven decision-making to the power of personalization and automation. Read on to explore their insights on building a resilient, progressive digital lending strategy.

Digital Progression Is a Journey, Not an End Point

According to the 2024 State of Digital Lending Report, less than 50% of financial institutions can fully manage their products digitally from start to finish. Even those with digital lending processes often face delays due to slow, fragmented systems.

This outcome is costly and highlights that digital transformation is far from a one-time project. At CAMPUS USA Credit Union, they're not viewing their digital lending strategy as an endpoint but as a journey of continuous improvement, what we call digital progression. This practical approach allows them to support their members' needs every step of the way, deepening engagement and building stronger, lasting relationships with services that are fast, personalized, and easily accessible.

Digital Progression With CAMPUS USA Credit Union

For credit unions just starting or refining their digital lending strategy, a phased approach is often the most effective path forward. By breaking goals into manageable stages-immediate priorities, mid-term objectives, and long-term aspirations-credit unions can address current needs while also laying the foundation for future growth.

At CAMPUS USA Credit Union, the needs of its members often drive their priorities. Take, for instance, their decision to implement additional security measures in response to a rise in fraud attempts through online applications. Each phase of their digital progression presents its own unique goals, challenges, and resources-but the key to success is flexibility. By working closely with MeridianLink, CAMPUS USA is able to navigate each phase with expert guidance, ensuring that every digital tool they adopt aligns with their mission and commitment to providing excellent member service. As they continue to evolve, the credit union identifies opportunities to adapt and improve, staying responsive to new challenges and emerging possibilities.

With this adaptable mindset, your credit union can build a digital lending strategy that grows alongside your members' ever-changing needs. Here's a closer look at the five pillars driving digital growth for credit unions like yours.

1. Putting the Member Experience First

Credit unions are built on the foundation of taking care of their members, and today's members expect seamless, personalized digital experiences that fit their busy lives. When your credit union prioritizes this kind of service, you're more likely to keep members satisfied, loyal, and engaged.

At CAMPUS USA Credit Union, they offer the best of both worlds: a robust digital platform for the tech-savvy and in-branch service for those who prefer face-to-face interactions. Located in a college town, CAMPUS USA has seen firsthand the demand for mobile-first services among younger members, which is why they offer online account openings, digital loan applications, and more through MeridianLink.

But they also recognize the importance of in-branch service. Their systems are designed so staff can guide members through the same digital solutions, ensuring a seamless experience no matter how members choose to interact. Tools like cross-selling within MeridianLink also help staff personalize interactions, offering the right products, like an auto loan refinance, based on each member's unique financial needs.

This holistic, personalized approach strengthens relationships and deepens engagement, increasing the credit union's share of wallet and reinforcing its commitment to meeting every member's needs.

1. Deepening Member Relationships

Building loyalty among members requires more than just offering basic financial products. To keep your members coming back, your credit union must demonstrate a deep understanding of your members' needs and respond with tailored solutions that are both quick and efficient.

CAMPUS USA Credit Union differentiates itself through its mission of being a leader in member service, a goal it meets by empowering employees with fast, responsive solutions. With MeridianLink's automated decision engine, CAMPUS USA can process a range of loan applications-from signature loans to auto refinances-within minutes, providing a level of speed and efficiency that impresses members and enhances trust.

These quick and consistent responses help build member trust and confidence. As members experience smooth, hassle-free interactions, they are more likely to turn to CAMPUS USA for additional financial needs, increasing the credit union's share of wallet while reinforcing its reputation for efficiency, personalization, and putting the member first.

1. Fast, Frictionless Decisioning

Financial services move at the speed of light, making timing critical. Your members expect quick decisions, and if they're left waiting, they'll look elsewhere. To secure their business data-driven decisioning is key.

CAMPUS USA Credit Union has successfully implemented custom scorecards that align with its lending philosophy, using data to tailor decision criteria for member loans. With the help of MeridianLink, they improved their instant decision rate from 42% in 2018 to 70% in 2023, which is currently running at 72%. This increase streamlined their lending process and allowed staff to focus on more complex cases that require human insight, freeing up resources and ensuring consistent service for all members.

Tapping into advanced data analytics and custom scorecards has empowered CAMPUS USA to make fast, informed decisions-enhancing the member experience by providing prompt answers and building a stronger case for the value of their digital investments. This approach aligns with the broader industry shift from measuring spending alone to demonstrating tangible outcomes, such as faster processing times and greater member satisfaction.

1. Efficient, Automated Processes

Process automation is transformative for credit unions looking to scale their services and improve operational efficiency. By streamlining workflows, your credit union can minimize repetitive tasks, reduce errors, and free up staff to focus on what truly matters-providing exceptional service to your members.

At CAMPUS USA Credit Union, automation goes beyond loan processing to improve back-office functions as well. With MeridianLink's support, CAMPUS USA automated key processes like funding notifications. What once took minutes to notify dealers when loans were funded is now done automatically, ensuring faster, more consistent communication with both dealers and members. This not only boosts efficiency but also enhances the overall member experience by providing timely, reliable updates.

Additionally, CAMPUS USA uses automation to strengthen its fraud detection efforts. With automated reviews and updates to fraud triggers, the credit union can quickly respond to emerging threats, safeguarding members and reducing potential losses. This approach enables CAMPUS USA to stay ahead of risks while balancing efficiency and security-key factors in any credit union's modernization journey.

1. Data Centricity

Data is foundational to your digital lending strategy. By tapping into actionable data, your credit union can make smarter decisions that enhance member experiences, streamline operations, and stay agile in a constantly changing market. Data-centricity empowers you to measure the effectiveness of your efforts and adjust strategies based on real-time insights.

At CAMPUS USA, data is central to decision-making across the board. The credit union routinely monitors metrics like credit scores, debt-to-income ratios, and payment trends, adjusting its lending policies to reflect economic shifts. For example, recent data showed an increased risk associated with unsecured debt, prompting CAMPUS USA to refine its lending focus and communicate these changes to its team proactively.

Setting regular data review cycles helps CAMPUS USA stay agile. According to Rachael Smith, CAMPUS USA's data team tracks loan performance over specific timeframes to assess whether its decisions continue to align with members' needs and economic realities. These evaluation cycles allow CAMPUS USA to refine its lending strategy, adapt quickly, and demonstrate to members and stakeholders alike that it is both proactive and responsive.

Integrating data into every decision-making process allows credit unions to stay ahead of the curve, improving member satisfaction and optimizing strategies in a dynamic, competitive environment. By making data central to your operations, your credit union can better understand and anticipate member behavior, making more informed decisions and delivering improved service.

Your Path Forward

By focusing on these five core pillars, your credit union can build a digital lending strategy that enhances resilience, sparks innovation, and positions your credit union for continued success in a dynamic market. When these pillars are aligned, they provide a clear path forward. So, what's next for your credit union?

Watch the full webinar recording here and connect with us to take the next step in advancing your digital lending strategy today!

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