The ROI of Chat Commerce for Small Credit Unions

By Hannes Van Rensburg, Sales Manager at Clickatell

Hannes is an accomplished leader and payments industry expert with a deep understanding of macro factors as well as the detailed intricacies that drive revenue and improve customer experience.

The data showed that credit unions – large and small – have seen record revenues compared to pre-pandemic numbers. However, the revenue disparity between large and small credit unions is still high, as institutions with more than $1 billion surpassed their 2019 highs, smaller credit unions only approached $1 billion highs. before the pandemic.

So what can big unions attribute to their success? Technology investments made to improve operations, team efficiency and overall customer experience. In reality, pre-pandemic in 2019 JPMorgan has budgeted about $11.4 billion for technology spending, while half of banks and credit unions with less than $100 billion in budgeted assets less than $100 million.

With smaller credit unions emerging from the pandemic relatively unscathed — and profitable — it’s time to punch above their weight, capitalize on that momentum, and devote the profits to improving the digital customer experience. Digital investing is the most important aspect here, as smaller credit unions and regional banks are noted as consistently offering a best offline customer experience than the big banks.

When looking to drive growth well beyond the COVID-19 era, one technology to consider implementing is a platform that delivers communications to customers right where they prefer to chat – on their phones. . In fact, according to a consumer report by Clickatellone-third of consumers have communicated with a bank using a chat app, 73% are interested in banking through a chat app, and 70% are likely to use the chat app to transact banks if their bank/caisse offered it (millennials being the most likely).

Investing in Chat Commerce technology represents a critical opportunity for credit unions, especially small ones, to better personalize their communication and problem-solving capabilities for customers. It will provide banks and credit unions with all the digital tools needed to connect, interact and transact digitally with customers, further improving brand loyalty and day-to-day branch interactions. This includes:

  • Improve customer experience by providing direct access to information and services via urgent outgoing text messages and communication in chat applications without visiting a physical branch.
  • Give customers a way to save time and get the services and updates they need right away. Enabling additional chat features for quick, rudimentary inquiries allows call center staff to focus on more engaging and complex customer inquiries.
  • Save on customer service costs by allowing chat and/or chatbots to offload and streamline many tasks typically handled by in-person meetings or phone calls.

Imagine using a messaging and notifications feature to communicate with customers directly and in a less intrusive way when approval is needed for something like money transfer verification. To put things into perspective, the IRS is in the process of mailing letters to more than 36 million families who are eligible for the monthly tax credit for childcare expenses. Let’s think about how much more efficient this process would have been in terms of time and cost if each bank could simply text each person eligible for the update. Exactly…

Leslie M. Gill