Executive Summary
As competition within the payments landscape continues to grow, the ability for credit unions to position themselves as top-of-digital wallet with a high-touch, high-tech payment experience at point of sale is crucial. Having an innovative payments solution will not only help improve the credit union’s financial performance but also drive member growth, brand loyalty and deepen relationships with these highly engaged members. As one of the seven selected tests for 2024, the lab* at Filene examined Flow to determine if its technology would drive desired member behavior and better position credit unions as the top-of-wallet option at point of sale. The focus of this test was to answer the following questions:
- How much does real-time engagement payment drive incremental transactions and spend?
- What is the ROI on incremental payment transactions?
- What additional benefits do credit unions gain from integrated digital payment experiences, such as increased member engagement, loyalty, or enhanced relevance to new and younger members?
Credit Union Implications
With declining non-interest income and more payment fintechs providing alternative options for members, credit unions should explore offering solutions like Flow to drive deeper engagement and position themselves as the primary payment option for their members. The ability to offer a more-personalized payment experience will lead to higher card utilization and make it easier to cross-sell additional products to their loyal cardholders.
Thank you to Flow, Chartway CU and Michigan State University FCU for their support throughout this test.
