Credit union members want value, not “free” products like checking accounts that actually come with fees, according to James McCabe, EVP of Vero, a strategic partner of the New York Credit Union Association.
McCabe wrote recently in Credit Union Times about the growing trend of credit unions replacing free checking with value-added services.
“Often, members who have free accounts begin to feel ‘nickel-and-dimed’ and misled due to fees such as check reorders, ATM transactions and overdrafts,” McCabe wrote. On the flipside, recent studies show millennials in particular are willing to pay for non-financial services from their financial institution.
“The same members who have no problem paying as much as $15 a month for subscriptions such as Netflix, Amazon Prime and Hulu will appreciate ‘value checking’ accounts versus accounts with perceived, fake, ‘free’ services,” explained McCabe. “Credit unions have a unique opportunity with their members to create the ultimate engagement opportunity and prevent members from seeking these services from a less trustworthy online resource.”
Additionally, the increasing frequency and severity of data breaches means now is a good time to consider offering members services such as ID theft protection and child ID theft protection, according to McCabe. In addition to providing members with an important service, the products also increase member engagement and loyalty, he wrote.
“This is the perfect time to enhance your services to protect members beyond the walls of your institutions and provide them with peace of mind,” wrote McCabe. “Embed more valuable protective services into your financial account offerings and secure your membership for years to come.”
To learn more about Vero, visit the Association’s website.