Do credit union members
Need Loyalty Rewards?
Jan 2nd 2025 | Authored by: Jasmin Athwal
4 min read
In today’s competitive financial ecosystem, credit unions are at a tipping point. To thrive, they need more than just catered services—they need loyalty, and loyalty starts with rewards that truly resonate with their unique members.
The Credit Union Problem
Credit unions are at a crossroads. While their core mission of community-driven financial services resonates with many, they face challenges that threaten their long-term viability exacerbated due to the sector’s financial margins remaining under pressure.
One key issue? An aging clientele. Many credit unions struggle to attract younger members who are enticed by the flashy perks and convenience offered by major banks. Picture this: a 22-year-old is choosing between a traditional credit union and a Big 5 bank that’s promising a free iPad or generous travel points for signing up. It’s easy to see how the credit union might lose out.
Loyalty is another point of contention. Building it without the right tools is difficult, especially when the competition is raising the bar with tech-savvy, in-house offerings. The result? A vicious cycle where credit unions lose members, making it harder to innovate and compete.
But it’s not all doom and gloom—because loyalty, when done right, can be the game-changer credit unions need. A loyalty program is a dynamic system that rewards members for their engagement, while also fostering long-term engagement and new behaviours. While patronage accounts are a great start, they’re not a true loyalty program—they’re just the beginning of what’s possible.
Rewards = Loyalty
Rewards aren’t just a nice-to-have; they’re a must-have.
A recent survey revealed that nearly 90% of Canadians value earning points on every purchase they make. With inflation on the rise, consumers are spending smarter: nearly one-third of Canadians now choose products based on how many loyalty points they can earn—a 40% jump since 2021.
For credit unions, the message is clear: rewards programs don’t just attract members; they keep them engaged and coming back for more. But loyalty goes beyond retention—it’s about driving new behaviours, increasing member spend, and building deeper connections through data-driven insights.
A strong loyalty program doesn’t just retain existing members; it unlocks new opportunities. Consider this: members who redeem loyalty points often spend 15–25% more annually, while many also go on to become true brand ambassadors.
At the end of the day, Loyalty is more than just retention:
• Loyalty helps you retain your existing customers
• Encourages new behaviours
• And increases engagement while helping you understand your customers’ needs
Take a lesson from one of the major players: Scotiabank.
By clearly defining objectives for its Scene+ Rewards program, Scotia not only hit its targets but also strengthened its brand in a highly competitive market. More specifically the bank wanted to use it's loyalty program to attract younger customers and enable more cross-selling opportunities. To achieve this goal, the bank partnered with entertainment brands for young Canadians, such as Cineplex, and gave them Scene+ rewards for their repeat engagement. Customers from these partner brands were then encouraged to get a Scotia credit card and earn additional rewards for their existing behaviors. This process gives Scotiabank an advantage when young Canadians are choosing a primary bank. Scene+ also adds in an additional element of personalization that allows its users to choose between redemption for in-store discounts, gift cards, statement credits, or travel credits.
Credit unions have the same potential to thrive by leveraging loyalty programs that meet the evolving needs of their members.
The Cyder Advantage
This is where Cyder comes in.
At Cyder, we’ve developed a platform that makes implementing a loyalty program a seamless process for credit unions. It’s local, impactful, and, most importantly, simple. Our solution ensures members are rewarded in ways that matter through personalized, accessible, and meaningful rewards that drive engagement and build trust.
The numbers speak for themselves. A recent Gartner report predicts that a third of brands without loyalty programs today will establish one by 2027. Cyder ensures credit unions aren’t left behind. We’re already trusted by industry leaders and have the credentials to back it up including being Desjardins Start up in residence. What also speaks to the level of credibility we provide is our SOC 2 Type 2 certification, which guarantees we meet rigorous industry compliance and security standards.
But it’s not just about the tech or the compliance—it’s about the impact. With Cyder, credit unions can compete with the big banks by offering rewards that truly resonate with their members. Whether it’s helping a young family save for their dream vacation or giving a retiree more flexibility in their spending, our platform transforms the loyalty experience.
Cyder makes loyalty simple, effective, and rewarding for everyone involved. Let’s build the future of credit union loyalty—together.
Build the right CU loyalty program with Cyder.
If you're looking to thrive amidst a changing loyalty and rewards landscape, Cyder can help. We encourage you to book a one-on-one demo today with Cyder’s CU loyalty experts.
Jan 2nd 2025 | Author: Jasmin Athwal
If you're looking to thrive amidst a changing loyalty and rewards landscape, Cyder can help. We encourage you to book a one-on-one demo today with Cyder’s CU loyalty experts.