At this point, it’s no secret that credit unions are playing catch-up to other financial institutions when it comes to their digitalization strategies. As per a recent report from McKinsey, credit unions could find themselves at a disadvantage amidst changing demographics. With the Great Wealth Transfer—where over $100 trillion is set to be inherited from Baby Boomers—there’s no room for hesitation in modernizing processes.
Yet in the push for more modern, streamlined services, credit unions can’t dismiss the human side—even when targeting digital-native, younger generations. In the race to bring friction-free digital experiences to account holders, credit unions risk losing sight of a key element for building long-lasting relationships: empathy.
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The Cost of an Efficiency-Only Mindset
Many digitalization strategies are centered around speeding up and streamlining services with the help of AI-powered automation. Undoubtedly, when done right, this has helped financial institutions free up much-needed human capital for more complicated tasks while cutting costs on basic, repetitive workflows.
Let me be clear: efficiency is important. But people also want options when it comes to their user experience (UX), and that sometimes means being able to speak to an actual person rather than an AI bot. Credit unions, which have a longstanding history of trust and community, can’t afford to compromise on a human-centered approach to managing account holders.
Credit unions with strategies hinged on maximizing efficiency via automated workflows that ignore empathy will lose account holders. A grieving inheritor will likely feel more insulted by an AI-generated voicemail or email expressing condolences. They certainly won’t feel seen, heard, or valued. Credit unions that pursue this modus operandi can expect existing and prospective account holders to lose trust in them and run.
And just because younger generations like Gen Z are typically more digitally savvy doesn’t mean they want a digital-only experience. In fact, 8 out of 10 Gen Z-ers want a human connection when they’re making major financial decisions. An algorithm won’t feel like a supportive helping hand in times of strife and struggle.
Striking a Balance: Where Efficiency Meets Empathy
Of course, credit unions will also suffer high degrees of churn if they insist on sticking with a strictly brick-and-mortar service. Inheritors juggling grief, everyday demands, busy work schedules, and family commitments don’t enjoy having to come in person multiple times to file a document. They’ll probably jump ship if they’re persistently asked to come into the credit union’s office at 11 AM on a Tuesday, only to be met by a new teller who doesn’t know their history every time.
This is why balance is key. Credit unions need to meet people in the middle. That means embedding empathy into their user experiences and customer journeys.
Empathy is, in fact, a scalable element in digital transformation. Achieving this boils down to the UX blueprint and establishing workflows so that the human touch is naturally integrated into them. Credit unions don’t need to make grandiose gestures and sink tons of capital and human resources into this, either.
Let’s take a look at the basic fundamentals of ‘good’ UX design. Online portals or platforms must be accessible and easy to navigate. Don’t force account holders or inheritors—who are pressed for time or energy—to click through multiple landing pages to find what they need. Make key information, like contact details, login pages, and chat plugins, clearly visible and quickly accessible.
Language also makes or breaks people’s experience. Instructions that are difficult to understand, whether they’re overloaded with jargon or unnecessarily read a mile long, won’t inspire confidence among account holders. It can make some individuals feel disengaged from their own experience, and possibly not trust what’s being communicated to them. Empathy starts with recognizing that no two people are alike, each person has their own needs and experiences, and meeting them there.
Tone matters hugely, too. Empathetic language is comforting but not condescending, and definitely not cold. Include messages of support where they make the most sense. For example, that could be at the start of the inheritance process. An introductory message that begins with an expression of sympathy will resonate much more positively than an abrupt demand for a deceased account holder’s death certificate.
Here’s a crucial reminder: authenticity requires consistency. A random note of compassion will feel like an afterthought or worse, inauthentic, if it’s the only one of its kind across a credit union’s interaction with an account holder. Empathetic tones of voice need to align with wider communication outputs, whether that’s emails or key landing pages, and the brand values.
Empower the Teams Working Alongside the Tools
Driving empathy in digital transformation doesn’t just sit with the technology, but teams, too. Just like any algorithm, though, people also should be trained and empowered with the necessary soft skills.
Moreover, for empathy to ring true, it needs to be viewed as a core cultural value, not just another marketing or communications tactic to win customers over. That’s not how meaningful relationships founded on trust are built. Everyone, whether they’re in leadership, IT, operations, or client-facing roles, needs to recognize the importance of empathy and actively champion it.
Not surprisingly, team members’ aptitude for soft skills like emotional intelligence will vary from person to person. For some, it comes naturally to read between the lines and practice greater sensitivity. Others, however, may struggle to sound sympathetic in a professional setting—not that they’re insensitive or unkind, but simply that it might be outside their comfort zone to comfort a distraught account holder.
Fortunately, there are ways around these hurdles. Practical training with a guiding playbook of what to say and when, as well as what not to say, can be incredibly helpful. Less confident frontline staff can improve their soft skills with simulations of real-life scenarios. For instance, they could learn about how words like ‘death’ or ‘dead’ can trigger recent inheritors and be considerate of a greater need for sensitivity around language in these situations.
They can also be empowered to speak with confidence to avoid sounding robotic and maintain a respectful tone. Playbooks with suggested responses can be incredibly helpful, but it’s crucial that staff don’t sound robotic, either. Training programs should be designed to ensure team members are articulate, confident, respectful, and, of course, empathetic.
Beyond the softer skills, staff also need to be familiar with handling the technological side of operations. That’s not to say they should become data scientists, but rather understand when they need to step in where a chatbot falls short, and how they can take things from there.
Again, most account holders want the power to choose whether they can speak to an AI agent or a real person. The staff behind the scenes need to be empowered to follow through on that, further emphasizing the empathy-driven nature of a credit union and strengthening trust.
In highly stressful situations, it’s not unheard of for account holders to get extremely emotional. Tears or outbursts sometimes happen, and distraught or frustrated customers don’t want to be met with a detached representative—they would probably stick with the chatbot if they did. Train teams to handle these kinds of situations in a controlled yet compassionate manner. They should also be familiar with the next steps to resolve the issue or request, which might involve checking a chat or account history. Make sure they have all the tools they need to do so.
The credit unions that thrive, not just survive, in this digital-first landscape are the ones that prioritize empathy just as much as efficiency. They’re rooting it in their members’ experiences from the first touchpoint of their journey, ensuring they’re meeting them where they’re at, and making their lives simpler.
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