It might be overblown to call it a “credit union liquidity crisis,” but there certainly is a pressing need for deposits.
So, what can credit unions do?
For starters, they can provide members with the tools they need to achieve their own financial goals. By helping members save, credit unions can guarantee themselves deposits.
It’s a real win-win.
Read on to see fintechs that can help you start winning. One of them generates an average of $300 per member per month!
A Quick Note about Members
Post-pandemic personal finances are pretty different from mid-pandemic numbers. Nobody’s giving out stimulus money anymore. And, if you shop for your own groceries, you’ve seen the effects of high inflation.
Unfortunately, this his young, low-, and middle-income members the hardest. Instead of contributing to savings, these members are watching their accounts dwindle.
The real credit union liquidity crisis is that many members can’t save money. Here are some fintechs that partner well with credit unions:
Credit Union Liquidity Partners (for Deposit Generation)
Rather than look at other creative ways of managing liquidity (like loan syndication, participation, and sales), let’s just dive into deposit generation.
Here are 4 fintechs we like that partner with credit unions:
Note: these fintechs are presented in alphabetical order.
1. Changed
Changed was originally created as a nifty app to help people pay off student loans. It grew naturally from there.
Changed helps borrowers reduce and pay off their debt a little bit at a time. Users “round up” the spare change from their purchases, and that spare change goes toward their current financial goal.
Today, Changed helps users pay off student loans, credit cards, mortgages, cars, and more. Plus, they introduced a “Stash My Cash” feature to help people automate their savings.
2. Debbie
Debbie helps members with savings and debt as well, but they take a different approach. Debbie helps users identify financial goals (such as paying off debt or creating a savings fund); then Debbie offers users cash incentives when they make progress toward their goals.
To help users meet their goals, Debbie works with credit union partners to find high interest rates for their savings and refinance options for their outstanding loans.
3. Guac
Guac also helps members with savings and debt by making “saving as easy as spending.” The way they do it is both unique and highly flexible.
First, users can choose a “saving percentage” of every purchase that goes toward savings or debt. For example, a 10% savings on a $10 purchase puts $1 toward the user’s financial goal. It’s like tipping yourself for each purchase.
Second, Guac offers cash back and other rewards while shopping with its extensive partners list.
What we like best about Guac is their rate of savings. They average ~$300 per member per month, generating deposits much faster than competitors.
4. Plinqit
Plinqit works with credit unions to provide gamified savings and financial education for their members. Users set savings goals and then get paid to save and learn about money.
Plinqit helps members by automating savings, so like the other apps listed here, members can “set it and forget it” until they reach their goal. (Or goals—Plinqit supports up to 5 concurrent financial goals per member.)
Getting Started with a Fintech Liquidity Partner for Deposits
All the fintechs above have great platforms. We believe that each of them will improve member finances while also driving and retaining credit union deposits.
It’s interesting to see that each fintech does things just a little bit differently. You’ll have to see them for yourself to determine which is right for your credit union and members.
One thing we’ve learned about Guac is that their average yield generally exceeds that of most of their competitors. Their customizable, percentage-based contribution to savings (based on spending) helps members save 3–10X more per month than similar options.
In practice, that means that on average, Guac generates more savings for users—and more deposits for credit unions—than the competition.
Additionally, their AI-powered financial guidance works a lot like self-driving finance. It takes a lot of legwork and fear out of savings. Plus, all the saved money is available instantly, ensuring that users don’t also run into a liquidity crisis!
Learn more about them here:
