Big banks have something most credit unions don’t: massive marketing budgets and flashy perks that catch members’ attention.
They offer travel credits, streaming subscriptions, and premium rewards programs. Meanwhile, credit unions are stuck trying to compete with limited resources and static benefit packages that nobody uses.
Not surprisingly, members look elsewhere for rewards. Non-interest income stays flat.
But credit unions can offer the same caliber of benefits without the big bank budget. What if members could choose their own perks, just like they choose their own shows on Netflix?
The Problem with Traditional Benefits
Here’s the uncomfortable truth: most members don’t use their checking account benefits.
You might offer identity theft protection bundled into every premium account. That’s great for the 30% of members who worry about ID theft. What about everyone else? They’re paying for something they’ll never touch.
This creates some real problems. Members don’t see the value when benefits don’t match their lifestyle. The account feels expensive rather than premium. Your costs stay high because you pay for 100% of enrolled members to have access, even if only a fraction actually use them. And when members don’t use their benefits, there’s nothing keeping them from switching to another institution.
Big banks keep adding more perks to their premium accounts. They can afford to throw everything at the wall because they have the scale to absorb the cost.
Credit unions need a different approach.
What Netflix and Amex Figured Out
Netflix changed entertainment by letting people choose what they want to watch, when they want to watch it. No more waiting for your show to air on Thursday nights. No more paying for 200 cable channels when you only watch five.
American Express built loyalty by offering rewards that members actually want. TSA PreCheck credits. Airport lounge access. Travel credits. These are lifestyle upgrades that meet real member needs.
Both companies understood that choice and relevance drive engagement. And that’s exactly what credit unions can learn from them.
The Member-Choice Model to Checking Benefits
Imagine your premium checking account worked more like a membership than a bank account.
Each month, members log into a platform and choose the benefits they actually want. Someone planning a vacation might pick travel credits and TSA PreCheck. A busy parent might choose streaming subscriptions and grocery discounts. A budget-conscious member might select subscription tracking and bill negotiation services.
Next month, their needs change, so they swap out benefits for something else. The account stays relevant because it adapts to their life.
That’s what “Netflix-like benefits” means in a credit union context. Members get choice and flexibility. Benefits that actually match their needs.
“Amex-style rewards” means offering premium, lifestyle-enhancing perks rather than generic cash-back programs. Think Amazon Prime membership, Uber passes, global airport lounge access, and travel wallets. The kind of rewards that make members feel like VIPs.
Why Member-Selected Benefits Solves Multiple Problems
Member retention improves because members are actively engaged with their benefits. They’re logging in, making choices, and using perks they actually value. The account becomes sticky because leaving means giving up benefits they’ve customized to their lifestyle.
Non-interest income increases because more members see the value and sign up for premium accounts. When benefits are relevant, the monthly fee feels like a bargain rather than an expense.
There’s also a huge operational advantage. With traditional benefits, adding new perks means negotiating new contracts, increasing your per-member costs, and expanding your budget. With a member-choice model, new benefits get added to the catalog automatically without increasing your costs.
You only pay for members who actually enroll. Furthermore, you charge what you want, so you get per-member ROI.
Does This Actually Work?
Credit unions and community banks using member-choice benefit platforms are seeing proven ROI.
We’ve been working with Avibra, a fintech that provides exactly this kind of benefits platform. Their partners have seen measurable improvements in retention, lifetime value, profitability, and checking balances.
So far, they’ve proven higher monthly deposits, more card transactions, and better digital engagement.
The key metric to watch is engagement. When members log in to choose and swap benefits, they’re interacting with your institution more frequently. They’re thinking about your credit union as more than just a place to store money. It becomes a membership that delivers ongoing value.
What Makes the “Netflix and Amex” Model Work
The success of this approach depends on three things.
First, you need a large enough catalog of benefits. If members only have 5-10 options to choose from, the “choice” isn’t really meaningful. You need dozens of options across different categories: financial protection, lifestyle rewards, health and wellness, and income boosters.
Avibra, for example, offers more than 70+ benefits in their catalog. That’s a lot of member choice—and a lot of benefits relationships you don’t need to manage.
Second, members need true flexibility to swap benefits. The Netflix comparison only works if members can actually change their benefits regularly. If they’re locked in for a year, it’s just another static bundle with better marketing.
Third, the benefits need to be things members genuinely want. Generic offerings won’t drive engagement. Think about what would make you personally excited to log in and explore new options each month.
When these three elements are in place, the model works because it aligns incentives. Members get personalized value. The credit union gets engaged, loyal members and steady non-interest income.
Should Your Credit Union Explore Member-Chosen Benefits?
Maybe? That’s really up to you. If you’re happy with your current rewards system, then maybe not.
But if you’re looking for something more turnkey, or something that offers more than what you can deliver on your own, then absolutely yes.
Especially if you need new sources of non-interest income, or you want to improve member retention and engagement.
We’ve looked at several benefits/rewards solutions over the years. Per our estimation, Avibra’s offer is the most robust with the most straightforward pricing and ROI.
(You can download more information about them below.)
