Executive Summary
While the concept of subscription-based pricing is not new to credit unions, many continue to struggle with the how and when to implement the right strategy. The current operating environment includes many factors that indicate now is a good time for credit unions to offer a subscription model for their members. For example, consumer expectations and willingness to pay for more personalized and frictionless services continues to grow. Also, our industry is at a critical point to find additional sources of non-interest income with the continued decline in non-sufficient funds (NSF) and/or overdraft protection fees.
As for how to implement the right strategy. The following report will highlight the lab* at Filene's journey with exploring and testing subscription-based pricing, including what we and the participating credit unions tested in 2024 to help answer the following questions:
- Could subscription-based packaging of banking products and value-added services increase engagement with existing and prospective credit union members?
- What subscription-based products and features resonate most with members, and how can these preferences shape potential offerings?
- What is the potential adoption rate for subscription products, and what pricing models would members finds most appealing?
- Which subscription concepts offer the biggest opportunities for credit unions in terms of feasibility, scalability and member impact?
Credit Union Implications
As credit unions navigate an evolving financial landscape, embracing subscription models presents a compelling opportunity to enhance member engagement, personalize services for unique member needs, appeal to younger demographics, and generate new streams of revenue. If your credit union is looking to implement a subscription-based pricing model, download the full report to see which kinds of offers members were most interested in and six key considerations for successfully developing subscription products.
Filene would like to thank Melissa Wrapp, Credit Union 1, IHMVCU, MSUFCU and Rize for their contributions and support throughout this test.
