Table of Contents: Member's Ever-Evolving Expectations Catering to Generational Preferences More Than a Credit Union The Business Case for Value-Added Checking Increased Member Loyalty Non-Interest In...
Why 2025 Will Be the Year of Value-Added Checking Accounts
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Increasing competition from banks and fintechs has created a need for innovative strategies in a credit union’s business. As the need to differentiate one’s institution has increased, a new key differentiator has emerged — value-added checking accounts.
This member-pleasing solution goes beyond basic banking, offering a range of appealing lifestyle benefits. These accounts can provide your members with benefits like tempting discounts, cell phone insurance, and critical identity protection offerings, making them a compelling option for members seeking the best checking account for their needs.
Your credit union can stay competitive by offering checking accounts that are jam-packed with lifestyle benefits that keep your current valued members satisfied while differentiating your checking accounts for new members to come running.
Members’ Ever-Evolving Expectations
Today’s rapidly advancing world has triggered an evolution of your members’ expectations regarding their financial experience. Gone are the days when traditional accounts were enough to build and maintain member loyalty. Your members are on the search for the most personalized, beneficial banking experience, making it crucial to turbocharge your competitive edge with boosted benefits to grow and retain your business.
Catering to Generational Preferences
Younger members, in particular, are redefining their expectations of financial institutions. For Millennials and Gen Z, convenience and ease of use are crucial, considering their preference of digital experiences that create convenience within their busy lives.
Younger members are not just on the search for convenience in traditional accounts, they are also on the hunt for benefits and perks that boost their quality of life like discounts to local shops, travel deals, or identity protection offerings.
With younger generations quickly becoming a larger segment of your member population, the need to keep up with their demands for perks and convenience will continue to increase.
More Than a Credit Union
Members are increasingly looking toward their financial institution to support, not just their financial needs, but their overall lifestyle, as well. They don’t just want a simple account to keep their money, they want a financial partner that helps them maintain their overall financial health and security. Financial institutions that act as more than just a basic banking service will find themselves legions ahead of their competition that do not.
The Business Case for Value-Added Checking
Value-added checking accounts are a powerful tool for credit unions looking to increase their resilience and strength in today’s increasingly competitive financial market. Those who utilize this solution may find their business benefiting from:
Increased Member Loyalty:
The average credit union loses 12% of its account base each year, according to the Credit Union Times. The best way to combat the loss of your members is by offering them perks and benefits that boost their experience with your financial institution, like value-added checking accounts.
Non-Interest Income Opportunities:
The fee-based programs in value-added checking accounts boost a credit union’s sustainable income, building wealth and resilience in a time full of constant change and advancement. According to industry experts, 36% of non-interest-bearing accounts generate a recurring monthly fee of $5 - $7 with mobile rewards.
Differentiation in a Competitive Market:
Value-added checking accounts can be an incredibly useful tool for sending your credit union ahead of the competition. Offering your members these tempting perks will help your business stand out among traditional banks and fintech challengers.
Features That Define Value-Added Checking in 2025
Just like everything else, the definition of a value-added checking account will continue to evolve in 2025. The features that your consumers will define as value will likely include:
- Local Discounts and Rewards: Services like a local deals network help your members save on daily dining, shopping, and travel.
- Protection Services: Your members value the security of their identity and credit. Show that your institution does, too, with offerings like identity theft protection and credit monitoring services.
- Everyday Convenience: Today’s digital age has drastically increased the demand for convenience and accessibility. With offerings that boost your members’ access to services they need like mobile app access, roadside assistance, and other tools that simplify your members’ lives.
How Credit Unions Can Get Started
There is no questioning that value-added checking accounts can be a valuable asset to your credit union’s success. To implement the strategic solution into your strategy, your credit union needs to:
- Partner with the Right Solutions: Implementing checking strategy platforms can be as simple as finding the right partner. With quality checking account solutions, your institution can have your new, and improved, checking strategy up and running in no time.
- Tailoring Benefits to Member Needs: Every member demographic will have varying needs. Survey your members to understand what perks they value most and work to implement those into your strategy.
- Promoting the Perks: Effectively marketing your discounts, perks, and benefits is a great way to ensure your current members are benefitting from the complete value of your credit union while enticing new ones to give your business a try.
Looking Ahead
We think that 2025 will be the tipping point for value-added checking accounts. Those who embrace the effective tool will likely find themselves ahead of the race for member loyalty, leading the market. Will your credit union keep up with them? Act now to ensure your institution is staying ahead of these trends, granting your members the benefits they want, ultimately boosting your credit unions’ business!
Ready to Evolve Your Checking Strategy?
Learn more about how your credit union can stay ahead of the game with value-added checking platforms from one of our SWBC RVPs today!
Ronni Martinez
In her latest role as Vice President of Product Management – Product Innovation, Ronni Martinez identifies industry partners that bring fresh ideas, concepts, and products to the financial institution space. With a goal to Partner with a Purpose, Ronni is dedicated to collaborating with industry leaders to develop modern, relevant, and empowering solutions that create value for SWBC clients.
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