NAFCU Services Blog

Mar 22, 2024

Help Ease Your Members' Loan Payment Concerns

By Lisa Pavelski, Director, Lending Digital Capabilities, TruStage  

Macroeconomic forces have caused the demand for payment protection products to increase over the past few years. Now is the time for credit unions (CUs) to protect their members when they need it most.  

By leveraging collaborative solutions, credit unions can streamline the process of offering payment protection products to their members. Integrating educational content and provisional quotes directly into the digital loan application experience helps members make informed decisions about protecting their financial well-being. This approach not only increases member engagement but also addresses concerns about loan payments by providing access to relevant protection options. 

Consumer-Driven Design  

In adopting a consumer-driven design approach, TruStage embarked on comprehensive consumer research to discern the priorities of both consumers and credit unions by first, setting out to quantify what mattered most to consumers and credit unions.  

The TruStage 2023 Consumer Lending Preferences research found 1:   

  • 81% of consumers worry about not being able to make their loan payments due to unexpected expenses and life events.   
  • 64% of consumers would be interested in obtaining payment protection products in conjunction with their loan if given the option.   
  • 69% of personal loan applicants and 48% of auto loan applicants don’t recall being offered payment protection.  

Additionally, a TruStage survey of credit unions revealed notable trends, with nearly 50% of direct auto loans being initiated digitally, and nearly 12% are funded with no human intervention 2. These insights underscore the importance of seamlessly integrating payment protection options into the digital lending process to efficiently meet consumer needs and preferences. 

Guided by these insights, collaborative efforts have focused on crafting solutions that prioritize member relevance and ease of integration for credit unions. By embedding educational content about payment protection directly into the loan application process, credit unions can empower members with relevant information while streamlining their experience. 

Collaborative Solutions Help Put Ease at the Forefront  

Technology integration with APIs (application programming interfaces) is one way credit unions can reach members where they are looking to improve the rates of product adoption. The behind-the-scenes integration also allows credit unions to have the most up-to-date, compliant and personalized education on the products they endorse. The systems can deliver the relevant types of payment protection, cost estimates and key details about benefits that are based upon each members’ specific lending needs and provide efficiencies to lending staff to have a more consultative tailored conversation with members. 

Serving Members Through Collaborative Innovation 

In conclusion, addressing members' loan payment concerns necessitates a strategic and collaborative approach focused on delivering value and support. By leveraging insights, embracing digital solutions, and prioritizing member education, credit unions can effectively meet the evolving needs of their members while fostering stronger financial resilience within their communities. 

1 TruStage 2023 Consumer Lending Preferences Research, May 2023  

2 TruStage Lending Tracker 2022 Survey Results, December, 2022  

TruStage™ is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate Headquarters 5910 Mineral Point Road, Madison, WI 53705  

LPS-6420487.1-0224-0326 © TruStage  

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