New Members? Capitalize on P2P Finance Trends
Gaining new members is top of mind for credit unions trying to cut through the noise in the finance and fintech space. Credit unions offer a value aligned financial experience that is increasingly attractive to a growing segment of financial consumers.
What is fueling these trends?
Trust is essential in the finance space. Major economists have identified that distrust in traditional financial institutions from the recessions of the early 2000’s, was a major contributing factor of the explosive growth of peer-to-peer finance platforms. Additionally, researchers specifically pinpointed that markets which had high percentages of consumer distrust in big banks, saw the biggest growth in the use of peer-to-peer finance platforms such as Venmo & CashApp. Several studies suggest that the majority of Americans believe that big banks are more likely to “exhibit opportunistic behavior, violate or breach obligations, act against consumer interests or even intentionally take advantage of consumers.”
What the trends tell us?
These trends tell us that consumers are ready for a different approach to finance that is centered around building trust. They want to have more control and oversight when it comes to their money. They want to know that they will not be taken advantage of by more powerful institutions. Peer-to-peer finance apps give the consumer more control over their money while democratizing lending, and donations. This means that finance products, institutions, or services that can effectively communicate their value aligned mission to consumers are likely to win in this more democratized financial market.
How does this help credit unions?
Credit unions are at a unique crossroads in the evolution of our global financial system. With the rise of distrust in Big Banks, financial organizations that have trust at the very forefront of their business model are ripe for expansion. This is a great time to be a credit union, provided that we effectively communicate our value to the general public. Distrust in Big Banks is fueling the growth of financial services that are founded on higher principles.
How to reach new members in the P2P finance space?
Providing stellar and compelling member experiences in the digital realm is key to engaging new members to capitalize on the P2P finance trends. Services that directly meet your members’ needs and can be branded to your credit union are a great way to take advantage of this trend. The NetGiver app follows this trend.
Through NetGiver, donations are fee-free so that members can make their most emotional financial decisions, with the support of their credit unions.
Is your credit union using NetGiver for increased new member acquisition? Contact hello@netgiverapp.com.