In reaction to altered member behavior, our clients have developed a variety of responses. While trying to get member's to "bounce more checks" might be a debatable strategy from a variety of perspectives, understanding how they use their transaction accounts is quite valuable.

With a better understanding of where members perform transactions with their debit and credit cards, rewards and incentive programs can be designed to take advantage of this knowledge. This can result in greater use of your plastics, thereby increasing interchange income but also create "stickiness" that helps with members retention when competing against national players and fintechs.

Regarding cross sales, we are aware that several loan origination system vendors are rolling out enhanced systems that provide the ability to cross sell not only insurance products, but other account services. The pandemic showed everyone that the world is a risky place and insurance that covers life's unexpected events, like debt protection, mechanical break down insurance, etc. can be helpful in financially stressful times. If you don't have the ability to incorporate cross sales into your automated channels, we suggest you talk with your digital loan origination system service provider about how this can be  addressed.

The move to automated, self-service transactions from check deposits to loan origination brings up the question of how you differentiate your institution from your competition. If there is nothing unique about your digital offerings that fits your members' needs, then why should they prefer your CU to other institutions that provide the same services? One way to understand your members' unique needs is to understand their behavior. This covers not only where they use their plastic, but what other products and services they use.

The first step is to know if it is happening and with who? Our Multidimensional Value Analysis service does exactly this as well as uncovering other places where value is created and destroyed. Our clients are learning the answers to these questions and others on the sources of value at their institution. This is helping them make informed decisions that maximize value creating and minimize value destroying behaviors.