Editor’s Note: This article was originally published on CUInsight and is shared here for your convenience. You can also view the original publication on their website.
Today’s members expect flexibility, convenience, and clear communication when it comes to managing their payments. Credit unions that want to strengthen member relationships and improve operational efficiency need to look beyond traditional bill reminders and payment options. Proactive digital outreach has emerged as one of the most effective strategies to meet these goals.
So why digital outreach?
Member expectations are, as always, increasingly digital. Younger generations, in particular, are accustomed to frictionless digital experiences in every aspect of their lives, and payments are no exception. Simply offering a portal or paper statements is no longer enough. Members now want timely reminders, multiple ways to pay, and seamless access to payment channels—whether they’re paying online, by phone, or in person.
By proactively reaching out across digital channels such as email, text, and mobile-friendly links, credit unions can:
- Reduce missed payments by reminding members before and after due dates.
- Replace paper check payments with faster, more secure electronic payments.
- Increase adoption of the digital self-service channel, boosting convenience and staff efficiency.
Don’t portals provide what’s needed?
Member portals are valuable, but they tend to serve only those who are already enrolled. Relying on portals alone risks leaving behind members who either never sign up or prefer quick, one-time options. Proactive outreach ensures that every member—regardless of whether they use a portal—receives the reminders and tools to make timely payments.
Is there any impact to my credit union’s bottom line?
When implemented effectively, proactive digital outreach consistently improves both payment speed and overall collections. Credit unions that adopt these strategies typically see:
- Higher digital transaction volume: Members are more likely to pay electronically when prompted through convenient channels.
- Reduced delinquencies: Pre-due date and post-due date reminders help members avoid falling behind.
- Improved member satisfaction: Multiple payment options and timely reminders make it easier to stay current, creating a positive member experience.
What digital outreach tactics actually work?
Some of the most effective digital include:
- Multiple reminders: Sending notifications before, on, and after the due date, helps remind members who may have overlooked earlier messages.
- Ad hoc notifications: Allowing staff to send digital payment requests reduces time spent on outbound calls and improves efficiency.
- Frictionless access: Secure links or QR codes remove barriers by taking members directly to their payment page.
- Pay by Text: Members can authorize payments directly from reminders, turning outreach into action with a single step.
Ultimately, digital outreach isn’t only about collections. It’s also about creating experiences that meet members where they are. Members who find it easy to pay their bills—without friction or frustration—are more satisfied and more likely to stay with their credit union for future financial needs.
For more information on this topic, watch the webinar: Shifting the Payments Paradigm: Why Digital Outreach Matters To Your Bottom Line.
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