Fintech
Union Credit Predicts Embedded Finance Trends for Member Growth
Union creditThe only marketplace where credit unions can make firm, pre-approved credit offers, in one click, at the time of purchase, reveals three emerging trends in embedded finance that continue to be a key strategy for member growth and long-term success for credit unions.
Barry Kirby, co-founder and chief revenue officer of Union Credit, said “Amid growing competition and a struggling economy, credit unions are looking for ways to increase brand visibility and boost member acquisition. Embedded offers are proving to be an effective way to reach new audiences who may not be aware of the benefits credit unions offer. More and more credit unions are meeting more Americans in their shopping and e-commerce experiences and helping them improve their finances.”
Three market changes that are helping credit unions through the adoption of embedded finance include:
Start with your brand first. This is the evolution of indirect lending. Incorporating offers like personal loans and credit cards directly into consumers’ shopping experiences increases a credit union’s visibility and fosters new relationships with consumers. This approach supports the credit union movement, using financial opportunities to successfully connect with the next generation of members.
Expanding financial access to low-income communities. Community Development Financial Institution (CDFI) credit unions are using embedded finance to expand their reach and achieve their goals for low-income communities. By leveraging census data, they can better identify and serve their target communities, expand their digital reach, and increase accessibility to financial services. This approach not only demonstrates their commitment to low-income communities, but also helps them maintain their CDFI certification.
Balancing Portfolios. Credit unions are working to balance their portfolios in the current economy. To do so, they are leveraging embedded finance to make their lending more accessible to all creditworthy consumers. Targeted offerings attract new members and foster lasting relationships by effectively meeting consumers’ financial needs. By integrating embedded finance into their strategies, credit unions can achieve sustainable growth and maintain a balanced financial portfolio.
Kirby continued, “The future of the credit union movement will depend on their ability to disrupt old ways of meeting consumers where they are, with the products and services they really want and need. Those that succeed will build lasting relationships in their communities and play a critical role in our financial landscape.”