Why Improving Member Engagement Is Critical for Credit Unions in 2025

How Credit Unions Can Reclaim Member Loyalty and Stay Competitive

In today’s evolving financial landscape, credit unions are encountering a significant challenge. It’s not a matter of trust, community values, or commitment to their members—those strengths remain as vital as ever.

However, many are finding it difficult to keep up with the fast-changing expectations of modern consumers, who increasingly prioritize personalization, convenience, and proactive service. Meanwhile, big banks and fintechs are attracting attention with advanced digital experiences and customized offerings that align closely with what people are looking for today.

Evolving Expectations Between Credit Unions and Their Members

What used to be a close, values-based relationship is becoming increasingly fragmented. Many credit unions are seeking deeper insights into their members’ evolving needs and levels of engagement. While their dedication to service is clear, gaining a fuller understanding of what truly resonates with members can help ensure that every interaction adds value and strengthens the relationship.

Without visibility into how members are interacting with services (or if they’re engaging at all), it’s nearly impossible to build the kind of deep, personalized relationship today’s consumers crave.

That’s a big problem.

According to Gallup, 80% of credit union members say they want more personalized financial advice than what they are currently receiving. Even more alarming? One in five would consider switching to a different institution just to get that level of tailored service.

What Is Member Engagement, Really?

Member engagement goes beyond the number of logins or loan applications. It’s about how connected members feel to their credit union—how often they interact, how relevant they find the services offered, and whether they see their credit union as a trusted partner in their financial journey.

Engaged members use more products, stick around longer, and are more likely to recommend the credit union to others. Disengaged members? They drift, go silent, and eventually leave—often without saying a word.

Why Measuring Engagement Matters Now More Than Ever

Too often, credit unions are left guessing. Are members satisfied? Do they need more support? Is the credit union meeting their financial goals? Without measuring engagement, these questions remain unanswered.

Here’s what measuring member engagement can do:

• Discover Opportunities: Pinpoint where members are highly engaged—and find ways to replicate that success elsewhere.
• Drive Personalization: Use insights to tailor products, messaging, and outreach based on real member behavior and preferences.
• Fuel Growth: Engaged members are more likely to adopt new products, deepening their relationship with the credit union.

What’s at Stake for Credit Unions

According to a Bankrate’s 2025 Annual Emergency Savings Report, 27% of adults have no emergency savings. This creates an opportunity—and a responsibility—for credit unions to offer meaningful financial support and guidance. But without knowing who needs help or how (or where) to reach them, credit unions miss the mark.

In the same report, nearly half of consumers said they would consider buying insurance from their financial institution. That interest climbs even higher among younger demographics like Gen Z and millennials—63% and 60%, respectively. But again, credit unions can’t act on these opportunities if they don’t understand member engagement levels or preferences.

How Credit Unions Can Get More Engagement

It starts with listening—closely. That means implementing tools and strategies that provide insight into how members engage, what they care about, and where they’re struggling. Engagement tracking and benchmarking can help credit unions:

• Understand how members use financial tools like saving, borrowing, investing, and protecting.
• Identify gaps in service or missed opportunities for outreach.
• Benchmark against peers to know where they stand—and where they can improve.

Time to Stop Guessing—and Start Measuring

Member engagement is not a vague concept. It’s a measurable, actionable data point that can make or break a credit union’s success. Without it, credit unions risk losing the very members they’re built to serve.

Whether it’s through a homegrown approach or with help from an external tool, the important thing is to start measuring engagement now. Because the longer credit unions wait, the harder it becomes to close the gap between what members expect and what they receive.

A Strategic Advantage: FM PulsePoint

For credit unions who are ready to stop guessing and start measuring, FM PulsePoint offers a practical path forward. Developed by Franklin Madison, FM PulsePoint is designed specifically to assess and improve member engagement.

FM PulsePoint analyzes engagement across five core financial behaviors—Pay, Save, Borrow, Invest, and Protect—and compares results to industry benchmarks. This gives credit unions a clear, data-driven snapshot of where they excel and where they may be falling short.

Key features of FM PulsePoint include:

• Engagement Snapshots to quickly visualize member activity across key areas.
• Peer Benchmarking to see how your engagement compares to others in the industry.
• Actionable Recommendations tailored to help boost member involvement and satisfaction.

Tools like FM PulsePoint give credit unions the data and direction needed to better understand their members and provide more personalized, impactful service.

The Future Belongs to Credit Unions That Know Their Members

Personalization isn’t optional anymore—it’s expected. And it starts with understanding how members engage today, so credit unions can better serve them tomorrow.