The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the best consumer lending software content herein. The opinions expressed in this article are the opinions of the individual authors and may not reflect the opinions of MeridianLink, Inc.
At this point, sophisticated digital interactions are practically woven into the fabric of everyday life. From the palm of your hand, you can manage everything from grocery delivery to travel plans.
That convenience and simplicity is pretty nice, right? Most people agree, so it’s unsurprising that these expectations extend to financial services. Fast decisions. Personalized interactions. An easily accessible way to manage your money on your terms. As technology capabilities continue to advance, consumers are becoming more uncompromising on the digital experiences they’re willing to engage.
This poses a unique challenge for community banks and credit unions trying to win consumer attention and loyalty.
Solving this challenge certainly involves modernizing the technology platforms these institutions use. But just as critical to that is a continued commitment to fostering trust.
Change is constant, trust is not
Technology, industry, and consumer demands are changing. But trust remains central to every financial relationship. And in that regard, community institutions are uniquely positioned for success.
Fraud tactics are intensifying, and over a third of U.S. consumers say fraud or scams have reduced their trust in a financial provider. Two-thirds of accountholders (67%) in a recent survey reported not feeling truly known by their primary financial institution, a number that climbs even higher among accountholders with online-only and national banks.
Trust is hard-won and easily lost as it is. The rise in fraud risks and digital-first financial services (as opposed to face-to-face interactions) makes that trust all the more fragile. At the same time, credit unions outrank large national banks in terms of trust, service, and value.
That’s not to say that accountholders at smaller institutions are completely satisfied with their experiences. The survey also reported accountholders at such institutions are feeling the loss of personal connection more sharply than those at larger and online-only banks. But it does mean that community banks and credit unions are better poised to reverse that trend toward dwindling connection. They just need to infuse the consumer-first elements that set them apart with modern, convenient technology that enables more effective and efficient service.
The role of technology in building trust
You don’t usually see the foundation your house rests on, but it’s essential to keeping everything supported. The same is true of the values of community financial institutions. While consumers may not always see those values firsthand, they experience them through every interaction with your institution. And as more of those interactions take place digitally, the technology used to serve consumers plays an increasingly important role in bringing those values to life.
Every digital interaction has the potential to reinforce, or erode, trust:
- A confusing, inconsistent digital application leaves consumers frustrated, prone to drop-off, and unlikely to seek a long-term relationship with the institution; a smooth, clear, and focused digital application signals an institution invested in consumer experience, encouraging application completion and repeat transactions.
- Automation that creates speed but removes transparency or access to human support gets consumers nowhere faster; automation thoughtfully implemented to create speed, simplicity, and convenience, backed by easy access to human support as needed, reassures consumers with the answers and decisions they need sooner.
- Excessive fraud and ID verification stops can drag out application timelines for known accountholders, while too few stops leave your institution and accountholders sensitive financial information vulnerable; appropriate, flexible stops, determined by reliable consumer data, give consumers peace of mind that their information remains secure while avoiding unnecessary wait times.
These are just a few of the everyday consumer experiences that make or break trust, and they’re largely driven by technology capabilities.
Not all tech delivers on trust equally
Every day brings new promises of innovative experiences that will transform banking and lending. However, a compelling demonstration, slick interface, or impressive AI announcement alone proves nothing. If the financial institution can’t point to clear, better outcomes for their consumers and staff, then that “innovation” is just a fluffy marketing ploy.
The best consumer lending software innovation delivers:
- Less friction, removing unnecessary steps and simplifying the experience from initial application through account opening, onboarding, loan origination, and funding.
- More personalization, creating experiences that reflect each individual consumer’s needs instead of funneling every person through one, generic process.
- Demonstrable efficiency, automating repetitive tasks and integrating workflows to give staff more capacity to show up for the consumers who need them.
- Better connectivity, ensuring systems, data, and processes work together instead of functioning as siloed operations held together by a flimsy bolt-on workaround.
- Confidence at scale, delivering improvements while maintaining security and compliance at every stage of the institution’s growth.
Community FIs are turning to MeridianLink for this
We don’t take their decision lightly, which is why we’re constantly improving our technology solutions to better meet those institutions’ needs. Some of our most recent platform innovations include:
- Integrated online banking enrollment to set up digital banking for approved applicants without a separate enrollment process.
- Direct deposit setup during the application to drive engagement and account usage from day one.
- Electronic payments to fund new accounts directly within the application experience, streamlining funding while improving conversion.
- More tailored application experiences with personalized URLs that link targeted offers to prefilled applications, making it easier and faster for consumers to take the next step from marketing engagement to funded account.
Technology and consumer expectations will never stop evolving. As new innovations emerge, community financial institutions need solutions that not only deliver meaningful improvements but also integrate seamlessly with their existing systems. Connected technology, data, and workflows help institutions create more consistent, convenient, and secure experiences for consumers.
Ultimately, those experiences are what help build lasting trust. People need to feel confident in the institutions managing their money, knowing their needs are understood, their information is protected, and their financial relationships are valued. MeridianLink® is empowering institutions to deliver on those expectations through meaningful innovation and stable, secure, and engaging experiences.
Explore the latest enhancements and see what’s possible with MeridianLink.
