Today the consumer financial services industry is saturated with lenders, banks, and other service providers competing for consumer attention. Credit unions used to be the top choice for consumers to receive personalized care and attention for their financial needs—a one-stop-shop for loans, banking, and investing. Where trust in big banks failed, credit unions stood out. But, in a world of seemingly endless options for personal financing on the internet, credit unions will need to do more to stand out among the competition in order to retain current customers and attract new ones. But how? Driving faster decision-making for their consumers by embracing digital and using consumer-permissioned data technology.
Where credit unions can compete
While historically credit unions have been a staple service for consumers who care about trust, reliability, and personalized care for their financial decisions, consumer satisfaction with credit unions has dropped over 4% since 2021. According to the Credit Union Times and reports from PSCU, the rise in digital lenders over the years has increased consumer need for financial security in technology and digital-first financial services. With quicker decision-making because of tech-driven operational workflows and increased trust in online encryption for securing financial information from online lenders, credit unions can no longer rely solely on consumer relationships to stay competitive. Now more than ever, consumers want the digital paired with personal. Using consumer-permissioned data enables credit unions to do just that.
What is consumer-permissioned data and how can it help?
Consumer-permissioned data (CPD), or credentialed data, provides consumers the ability to share their data directly from their online accounts. Unlike traditional methods of data collection that do not use the consumer’s permission to take information, such as employment verification from The Work Number and other third parties, consumer-permissioned data puts consumers in complete control of the data about them. CPD platforms, like MeasureOne, connect the requesting credit union with the requested data only after the consumer has provided their consent. This way, credit unions can leverage necessary consumer data without losing trust in their consumers. But that’s not all. Here are the 3 other reasons credit unions should use consumer-permissioned data:
1. Process automations and better decision-making
Using a CPD platform allows instant access to necessary consumer data and removes the back-and-forth process of collecting information manually. This synthesized, precise data collection eliminates the need for reviewing superfluous documentation, and it also helps credit unions make faster, better decisions for their consumers by pulling fresh data.
Process automations through data collection
CPD eliminates the need for collecting piles of documents. Using CPD APIs allow requested, specific data to be pulled directly from the consumer’s account. That means less documentation collection, phone calls, and the risk for human error and correction. These streamlined operations reduce manual load and human error during the employment, income, and insurance verification process.
Improved decision-making
Pulling CPD in real-time ensures employment status is up-to-date and fresh. Every time. Consumer-permissioned data is taken directly from primary sources to ensure it is authoritative and fraud-proof. This instant information enables credit unions to immediately receive up-to-date secure consumer VOIE, home and auto insurance data to drive expedited approvals and increased conversions. Not only are loan approval processes sped up for borrowers but also denials are reduced through improved eligibility processes.
Ultimately, using consumer-permissioned data streamlines processes and enhances decision-making, saving time and money, and providing a more positive customer experience.
2. Serve more consumers and expand services
When credit unions use consumer-permissioned data, they are able to expand access to their credit beyond their typical audiences. Because CPD presents nearly unlimited access to different consumer account types, there is an abundance of fresh ways to qualify potential consumers. Whether verifying freelance income using invoices or contractor employment using an uncommon payroll provider, CPD opens up borrowing opportunities to a wider audience.
3. Cost-effective data requests
Using CPD is typically a lower cost alternative to traditional data warehouses and other third-party partners because there are no middlemen—the data comes directly from the consumer. Plus, when credit unions leverage consumer-permissioned data, they rely on technology-based solutions, which are inherently more cost-effective than using big data partnerships. Less time spent searching for the right data means more efficiency when it comes to verifying income and employment and saving time processing loan applications—that’s money saving. Ultimately, with primary source data and technology, costs per data request and documentation gathering decrease.
Introducing MeasureOne, your CPD partner
With automated workflows and data directly from the consumer (and at a lower cost all around), the decision to take advantage of consumer-permissioned data is simple. So why not use the industry-leading CPD platform, MeasureOne?
For credit unions, MeasureOne’s product offers:
- One-month, no risk free trial (and 90%+ cost-savings after the trial ends)
- Low cost, automated verification of income, employment, and insurance
- Data straight from primary sources (Payroll systems) ensuring fraud protection and up-to-the-minute accuracy
- 100% market coverage (over 5,000 supported payroll systems) driving industry leading conversion rates
From income to employment to insurance verification, MeasureOne brings secure, transparent data to the table for the benefit of credit unions and their consumers.
Let MeasureOne help streamline your credit union’s operations and continue driving consumer confidence.