When speaking to our credit union partners, they often tell us that Christmas is the busiest period of the year. This makes sense when you consider the average household spends over £700 more in December than in other months of the year (Bank of England, 2020), so it’s no surprise that credit unions are called upon more for financial support. Given the almost complete shutdown of travel and holidays during the pandemic and decreased loan applications overall, Christmas lending became even more important to credit unions over the last 12-18 months. It’s fair to assume then, that the ethical lending sector generally, has issued fewer loans since the pandemic started.
Now though, with the vast majority of restrictions removed in the UK after Freedom Day on 19th July, confidence amongst credit union members is slowly, but surely, returning. With festivals, large scale entertainment events, and the start of the new school year, consumer spending is surpassing that of pre-COVID levels for the first time. Some estimate the UK population has saved over £190 billion since the pandemic started. (CEBR, 2021)
As we know, the wide-ranging consequences of COVID-19 have been varied and complex. Not everybody is lucky to have saved money since March 2020, with plenty feeling the impact of reduced incomes, including those in the hospitality and travel industries, as well as the self-employed. Over 2.3 million self-employed workers were unable to claim relief, such as those who were new to self-employment or those working for limited companies. This perhaps explains why over the past month, incuto has helped to process over 10,000 loans for our partner credit unions.
Whether the pandemic has led to your savings balance increasing or decreasing, what is certain is that Credit Unions have adapted to the dynamic needs of their member bases. In August, we’ve managed to surpass over 100,000 Faster Payments, which is the highest monthly number we’ve seen so far. In that time, we’ve also carried out over 3,000 identification checks for new members, as CU’s continue to grow and expand.
Clearly, credit unions are providing the services that high street banks and others fail to do. With personalised, localised banking, members feel a valued part of a community organisation, pulling in the same direction for the same goals. Credit unions know their members and provide products and services that are specifically tailored to their needs.
Our messaging platform, incuto Buzz, allows you to do exactly that. Using the rich data you already know about your members, you can drive dynamic, intelligent messaging via SMS or email. Each campaign comes with its’ own suite of metrics, so you can really understand what makes your members tick.
For example, Liverpool-based Riverside Credit Union recently issued £115,000 in school uniform loans (or 1,000 uniforms) issued on back of Buzz campaign. Using Buzz, Riverside can now automate communications to Members. The platform’s campaign triggers have reduced the time spent by the credit union team significantly, so much so that its team has more than halved over the last 18-months.
To see what Buzz messaging can do for you and your members, book a free demo with us today.
Steve Lockwood, Customer Engagement Director