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Union Credit, the exclusive marketplace for credit unions, offers one-click, pre-approved credit options at purchase points, driving member growth and success.
Barry Kirby, co-founder and chief revenue officer at Union Credit, highlights the importance of embedded finance for credit unions facing heightened competition and economic challenges. Embedded offers directly integrated into shopping and e-commerce platforms allow credit unions to extend their reach and enhance financial wellness for new audiences.
Key trends in embedded finance according to Union Credit include:
1. Brand-Led Initiatives: Transitioning from indirect lending, credit unions are embedding personal loan and credit card offers into consumer shopping experiences. This elevates their visibility and cultivates consumer relationships, aligning to attract future members through financial opportunities.
2. Access for Low-Income Communities: CDFI credit unions are broadening their digital presence and operational reach in low-income areas through embedded finance. Utilizing census data for targeted service, this strategy enhances their commitment to these communities, ensuring CDFI certification retention.
3. Portfolio Diversification: To navigate economic fluctuations, credit unions are integrating embedded finance for broader loan accessibility and member diversification. This method attracts credit-worthy consumers, facilitating sustainable growth and balanced portfolios.
Kirby states that the engagement of credit unions with consumers through relevant products and services will forge substantial community relationships and cement their position in the financial ecosystem.
Our Opinion:
By breaking through the old ways of meeting consumers where they are and offering the products and services they truly want and need, credit unions can win lasting relationships within their communities and play a vital role in our financial landscape. Alternative finance lenders may consider partnering with credit unions that are adopting these strategies to expand our reach and better serve our customers.
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