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CU 2.0 Podcast: Series 18 – Al Pascual on Biometrics

It’s the Credit Union podcast! CU 2.0 is excited to bring you the eighteenth in a series of podcasts from Robert McGarvey. Welcome to the CU 2.0 Podcast, regular interviews with credit union leaders, thinkers, movers, shakers and more.

**Pop Quiz**

How long have passwords been around?

How many credit union members want never to use one again?

What are the three must-have biometrics modalities?

When will biometrics effectively supplant passwords in financial services?

Flashback time: when did Apple introduce Touch ID, a tool that thrust biometrics into everyday use for tens of millions of consumers?

Consider the above your pop quiz. How did you score?

Al Pascual, a researcher with Javelin, who recently co-authored a report on biometrics and financial services, knows the answers to these questions and he tells all in this CU 2.0 podcast.

It moves fast, you’ll want to hear it.

A sliver of good/bad news: it’s the biggest financial institutions that are carrying the weight of persuading regulators about the efficacy of biometrics and that just may be a blessing for smaller institutions – credit unions included – who can follow behind.

Click the photo below to listen now!

credit union biometrics, credit union security

Check out other podcasts in the series here!

CU 2.0 Podcast: Series 17 – Victor Corro on Hispanics and Credit Unions

It’s the Credit Union podcast! CU 2.0 is excited to bring you the seventeenth in a series of podcasts from Robert McGarvey. Welcome to the CU 2.0 Podcast, regular interviews with credit union leaders, thinkers, movers, shakers and more.

Ask Victor Corro, of Coopera, the Hispanic focused consulting firm for credit unions, on why Hispanics matter to credit unions and he gets impassioned.  Hispanics need credit unions, he says, just as credit unions need Hispanics.  He tells in detail exactly why that is so in this edition of the CU 2.0 podcast.

Note: the audio quality has imperfections in parts of this podcast.  We live in a world of imperfect telephony. But the audio is understandable. So give a hard listen and you will be rewarded.

Corro also tells exactly what a credit union needs to do to really pursue the Hispanic demographic.  It’s a multi-step process and he spells it out.

And he explains why many Hispanics are cellphone first consumers – and savvy credit unions need to truly get that if they hope to prosper in their pursuit of Hispanics.

Just remember: you need each other. And that makes this a perfect scenario for doing credit union good.

Click the photo below to listen now!

credit union hispanic demographic coopera

Check out other podcasts in the series here!

CU 2.0 Fintech Friday: Reggora

It’s CU 2.0 Fintech Friday! Today, Chris Otey sits down with Reggora to discuss all things credit union, fintech, and digital innovation.

fintech reggora, credit union fintechs

Reggora is an appraisal management platform. They speed through the property appraisal process in a fraction of the time that it usually takes.

One of the keys to Reggora’s platform is they automate a good deal of the appraisal process. Usually, a lender or loan officer will try to find an appraiser who specializes in the type of property being appraised. Then, it takes more time for the appraiser to meet the lender on their schedule.

Reggora addresses the long wait times for appraisals by using an Uber-like algorithm to match lenders and qualified appraisers. Reggora uses a database of thousands of appraisers. Their algorithm finds the most qualified appraiser nearby who fits with the lender’s schedule.

Overall, Reggora is able to accomplish in only a few days what usually takes a couple weeks to finish. Credit unions can use Reggora to help them streamline their mortgage experience.

If this sounds like an intriguing credit union–fintech partnership, check out the video and Reggora snapshot below!

Credit Union Fintech Snapshot: Reggora

Top 3 Problems Solved

  1. Appraisal speed
  2. Mortgage experience
  3. Finding qualified appraisers

Reggora Founder: Brian Zitin

Reggora Market Strategy

Credit Unions and other mortgage lenders

Credit Union Fintech: Reggora in the News

Reggora helps both lenders and appraisers

Reggora enters the real estate technology arena

Interested in seeing more fintech entrepreneurship? Check out the CU 2.0 fintech infographic, Death by 1,000 Cuts. You can see firsthand the impact fintechs have had on the credit union industry, as well as how fintech innovation can improve your income statement, balance sheet, interest margin, services, and more.

Credit Union 2.0 believes fully in the power of credit union and fintech partnerships. With the shared goal to redefine multifaceted financial services models look like to members, more credit unions are looking to partner with forward-leaning fintechs.

If you want to learn more about credit union–fintech partnerships, click here.

CU 2.0 Podcast: Series 16 – New Year’s Resolutions with Robert McGarvey

It’s the Credit Union podcast! CU 2.0 is excited to bring you the sixteenth in a series of podcasts from Robert McGarvey. Welcome to the CU 2.0 Podcast, regular interviews with credit union leaders, thinkers, movers, shakers and more.

Make some New Year’s Resolutions. That’s advice for you in this podcast, brought to you by CU2.0, all about re-imagining and reinvigorating today’s credit unions for tomorrow’s victories.
First, feast on New Year’s Resolutions. About 40% of us make them, according to research by the Marist Institute.  Many of us, in fact, get what we resolve to do.  Reported the researchers: “Do Americans keep their New Year’s resolutions? Among those who say they made a resolution for 2017, 68% said they kept at least part of their promise. Similar proportions of men (69%) and women (66%) remained true to their word for at least part of 2017. More men (75%) compared with women (62%) said they kept their New Year’s resolution last year.”
What this podcast is about is getting you to make a resolution involving your credit union.
Here’s how this is going to work. I’ll start out by enumerating some possible resolutions for you – and this is a situation where cribbing a buddy’s test answer is a-ok. Of course, you can always create your own. Either way, this is a perfect time to think anew about how to make your credit union better.

What resolutions do I suggest?

  1. Embrace artificial intelligence.  There’s Erica at B of A.  There’s Alexa at Amazon. There’s Siri at Apple (well, Siri is a kind of also ran – but she will get smarter and better). AI is a trend to ride. An easy starting point is debuting an Alexa skill for your credit union. Many credit unions are doing this. It’s cheap. Hear more about credit unions and AI in two podcasts: Coalesce and Posh.
  2. Accept that today technology makes or breaks credit unions. But know you don’t have to be a follower; you can be a leader. That’s the message of the DCU Fintech Innovation Lab, featured in an earlier podcast.
  3. Accept that mobile is your biggest, most important branch. Spend money to upgrade it. Make it different from other credit unions. Make it your own. Hear a lot of cool insights about mobile and how to go special in the podcast with Tanan Miles of Ent.
  4. Think digitally. Accept that analog banking is fading away. Don’t fight tomorrow. Very good insights into this are in our podcast with CU2.0 founder Kirk Drake. Amy Downs at Allegiance also talks about this in her podcast.
  5. Fire up your board of directors. You’ll hear a lot on this in the podcasts with Chris Otey and Trudy Soupcoup.
  6. Go local.  You can’t compete on the national stage with national banks.  No can do, But you can compete and win in your local community. What can you do to make life better for your neighbors? Know that and know that you are building a credit union that matters. Bill Bynum of Hope and Scott Budde at Maine Harvest offer powerful perspectives on going local to win.
  7. Embrace Hispanic members. One in 6 of us are Hispanic. What’s your credit union doing to cultivate that membership? Find out how to succeed with this demographic in a podcast that will post soon, with Coopera CEO Victor Corro.
  8. Know your mission. What is the credit union movement to you? It always has been about working cooperatively to better serve the underserved, everyday people.  What are you doing to hit that goal? Inclusiv’s Cathie Mahon has much to say about this in her podcast.

 

Click the photo below to listen now!

corporate credit union digital transformation

Check out other podcasts in the series here!

CU 2.0 Podcast: Series 15 – Cathie Mahon CEO of Inclusiv, the association of community development CUs

It’s the Credit Union podcast! CU 2.0 is excited to bring you the fifteenth in a series of credit union podcasts from Robert McGarvey. Welcome to the CU 2.0 Podcast, regular interviews with credit union leaders, thinkers, movers, shakers and more.

Talk to Cathie Mahon and it’s a fast ride into what mission makes a credit union special, distinctive and in her mind, the answer is clear: serving the underserved and usually that means economically disadvantaged.

She has tantalizing insights too. For instance: she tells why the business model of community development credit unions may, in fact, be primed for greater success than the model followed by most credit unions.

She also tells how the NCUA handcuffs newly chartered credit unions and this may set some up for failure.

And she has advice on designing a mobile banking app that betters serves the economically disadvantaged.

Listen up, it’s a good podcast that just may persuade some struggling conventional credit unions to investigate tweaking their business model and to embrace more community development outreach.

Click the photo below to listen now!

credit union podcast, credit union members, credit union mobile banking

Check out other podcasts in the series here!

CU 2.0 Fintech Friday: Posh Technologies

It’s CU 2.0 Fintech Friday! Today, Chris Otey sits down with Posh Technologies to discuss all things credit union, fintech, and digital innovation.

CU2.0 credit union fintech partnership

Posh Technologies is the brainchild of several MIT computer science students. Over the last couple of years, they’ve focused ongoing from an app-development company to working with conversational AI. Posh’s conversational AI assists with site navigation, automated customer service, and lead generation.

Posh Technologies’ smart chatbots help credit unions and financial technology companies streamline customer service and user experience. Instead of trying to navigate difficult websites, Posh’s intelligent chatbot can help users quickly find what they’re looking for.

Posh’s conversational AI also helps with lead generation to drive sales and increase member growth at credit unions. By determining which services a user is interested in, Posh’s AI bot can help credit union marketing teams determine how to entice and convert prospective members by offering valuable, relevant services.

Finally, Posh Technologies helps with internal support as well. In addition to helping members with the same problems, credit union staff who forget passwords, get locked out of their accounts, or checking on PTO statuses can check with Posh’s bot to help them resolve their issues.

If this sounds like an intriguing credit union–fintech partnership, check out the video and Posh Technologies snapshot below!

Credit Union Fintech Snapshot: Posh Technologies

Top 3 Problems Solved

  1. Conversational AI
  2. Credit union member growth through lead generation
  3. Automated customer service

Posh Technologies Founder: Karan Kashyap

Posh Technologies Market Strategy

Credit unions and financial institutions.

Credit Union Fintech: Posh Technologies in the News

How Posh got its start

Conversational interfaces make financial operations easier

Interested in seeing more fintech entrepreneurship? Check out the CU 2.0 fintech infographic, Death by 1,000 Cuts. You can see firsthand the impact fintechs have had on the credit union industry, as well as how fintech innovation can improve your income statement, balance sheet, interest margin, services, and more.

Credit Union 2.0 believes fully in the power of credit union and fintech partnerships. With the shared goal to redefine multifaceted financial services models look like to members, more credit unions are looking to partner with forward-leaning fintechs.

If you want to learn more about credit union–fintech partnerships, click here.

CU 2.0 Fintech Friday: Finnest

It’s CU 2.0 Fintech Friday! Today, Chris Otey sits down with Finnest to discuss all things credit union, fintech, and digital innovation.

Finnest is an education-based fintech company. Finnest helps parents teach their kids about earning, saving, investing, charitable giving, and responsible spending. They provide a prepaid debit card to children aged 8-17 and it supports healthy financial habits through a linked app.

CU 2.0 credit union fintech partnership

Credit unions can use Finnest as an additional service to provide for their members. It reaches into the next generation of consumers and prepares them for their first checking account. Finnest also readies minors for sensible financial engagement as they become adults.

Credit unions who offer Finnest’s services can help younger generations develop good financial habits. Parents can transfer money to their kids’ accounts for allowance, chores, and so on. Kids can build budget plans to support their savings goals. Parents can monitor their kids’ progress and get a picture of their account activity. Parents can also lock Finnest debit cards, set spending limits, and educate kids about investing.

If this sounds like an intriguing credit union–fintech partnership, check out the video and Finnest snapshot below!

Credit Union Fintech Snapshot: Finnest

Top 3 Problems Solved

  1. Youth finance
  2. Youth financial education
  3. Responsible financial engagement

Finnest Founder: Richard McDonald and Clemens Grave

Finnest Market Strategy

Credit unions and individual users.

Credit Union Fintech: Finnest in the News

Interview with Clemens Grave about Finnest

Another interview, but this one is different (we promise)

Interested in seeing more fintech entrepreneurship? Check out the CU 2.0 fintech infographic, Death by 1,000 Cuts. You can see firsthand the impact fintechs have had on the credit union industry, as well as how fintech innovation can improve your income statement, balance sheet, interest margin, services, and more.

Credit Union 2.0 believes fully in the power of credit union and fintech partnerships. With the shared goal to redefine multifaceted financial services models look like to members, more credit unions are looking to partner with forward-leaning fintechs.

If you want to learn more about credit union–fintech partnerships, click here.

Check out other fintechs in the series here!

CU 2.0 Podcast: Series 14 – AI for Credit Unions Part 2

It’s the Credit Union podcast! CU 2.0 is excited to bring you the fourteenth in a series of podcasts from Robert McGarvey. Welcome to the CU 2.0 Podcast, regular interviews with credit union leaders, thinkers, movers, shakers and more. Today’s topic is talking about the real credit union mission. Today’s subject is AI for credit unions.

Welcome to AI, Part 2 in the CU 2.0 Podcast series.  Last week our podcast explored email and AI through the eyes of Coalesce, a DCU Fintech Innovation Lab company. This week, in Part 2, we explore voice and AI through Posh Development, another DCU Fintech Innovation Lab company – a podcast about the Fintech Lab can be found here.

Either way, great stuff is happening that you need to know about to stay current.

Bank of America is pushing its AI bot Erica hard. But just maybe you can fight back with your own voice bot. That’s part of the Posh promise.

This is a podcast you can’t miss. AI definitely is the future. It’s up to you to understand and control it.

Click the photo below to listen now!

ai for credit unions, artificial intelligence fintech

Check out other podcasts in the series here!

2019 Credit Union Technology Trends to Watch

Wow.  What a year! The credit union and FinTech worlds are frothy and lots of change is underway. This year, some of the walls came down and credit unions saw more of the real world. Digital Credit Union has an incubator fostering FinTech Startups and the Boston FinTech Community. NACUSO’s Next Big Idea Competition brought in new concepts and innovative ideas to solve age-old credit union problems. A great example of this is LenderClose, a digital lending platform, which allows community lenders to streamline the lending cycle. Everywhere I looked this year, credit unions were actively looking to do things differently. It was great! Now, let’s keep the momentum going. To continue last years methodology, I thought we should compare last year to this year in terms of comparing each trend in the “Real World” versus its presence in “Credit Unionville.”

For 2019, there are seven technology trends that Credit Unions need to keep top of mind.

credit union trends

1. Cloud

Credit Unions continue to lag behind the Real World in Cloud adoption. However, we did see some major progress here this year. Ongoing Operations now has 40+ credit unions ”All-In” on the cloud and even has its first $1 Billion+ credit union client that no longer owns a server, storage, or its own network. The credit union has fully embraced the cloud, and it is awesome.

We continue to come across credit unions that have adopted “Cloud First” strategies. This is an improvement but it isn’t far enough. Adopting a Cloud First strategy at this stage is like going from a horse and carriage to a car when airplanes exist. We must rip the Band-Aid off and go faster.  If we don’t, all we are doing is widening the gap between credit unions and the Real World. Credit Unions will miss out on the next major trends like Machine Learning and Artificial Intelligence. Cloud stays in the #1 trend to watch spot because in my mind itis the #1 impediment to credit unions moving faster and being competitive in today’s environment.

2. Digital Transformation

 Like last year, this term is still way overused. Trust me, I know. In fact, I wrote a book on it. The good news here is that I think credit unions understand the urgency. No longer do I see tons of non-responsive websites. Credit unions are working hard to modernize their service delivery and make it more digital.

In fact, the good news continues with this trend. Digital transformation is a major issue for all legacy businesses, not just credit unions. So, we aren’t alone here. Furthermore, the tools, technology and collective experience necessary to be a digital ninja are becoming cheaper, improving quickly, and are more accessible than ever. I continue to believe this is a top issue and priority that every credit union marketing and technology team should be addressing in their 2019 plans.

3. FinTechs

First off, let me just say wow. The number of FinTechs in my database has nearly doubled (approximately 400). The number was high when I first started tracking the trend, but there are roughly twice as many now than when I wrote the book Credit Union 2.0 in 2017. I monitor this landscape closely, and every week I come across at least five additional FinTechs that interest me. It is increasingly difficult simply to keep track of what is out there, let alone figure out who to partner with.

As long as capital is cheap (although getting more expensive), this trend will continue. The average entrepreneur sees the pain and challenges with modern banking and is working to close the gap. The best news here is that more and more often FinTechs intend to go to market by partnering with banks and credit unions.

If we look back over the past 20 years, we went from having one mainframe to having one server and business application for every 2.5 credit union employees. Sadly, I think we will see something similar happen with FinTechs. The ability for a FinTech to profitably serve a key group of members or a single business function will be huge. Four out of every five presenters at NACUSO’s Next Big Idea Competition were FinTechs. Furthermore, itis the gateway tools are being built. Cloud Platforms, Middleware companies, i.e. AlphapackConstellation, and OnApproach, are creating entirely new ecosystems that will speed up creation and adoption. This will lead to financial success.

4. Marketing Automation

Personalization in marketing is key. In our 2018 work, Credit Union 2.0 partnered with a handful of credit unions to implement and transform things such as the attrition process and 2nd chance checking members. I won’t lie, this was really challenging at first. It took almost nine months and 1,000+ man hours to figure out the right formula. I’ll share that formula with you today. In order to pull marketing automation off, a credit union needs to unwind the 20+ platforms it uses. Next, you need to document key business processes and transform your entire way of thinking. We have found that you can’t simply start by fixing one platform or one tool. The answer is to pick one product or service and then build and test all the components on a new platform that is as integrated as possible to the old.

Get good at that one thing, optimize it, and then perfect it. An example of this is 2ndchance checking. This product requires 100-200 blogs and twenty different nurturing campaigns to take a prospective member from finding you on google to signing up for the product. To transform all of your credit union’s products and services, the average credit union will need 200-300 nurture campaigns, 50 landing pages, and about 3000-4000 blogs, videos & content pieces. I know that sounds daunting and perhaps as difficult as climbing Mt. Everest, but you had better get started. If you don’t take these steps, you just won’t exist in twenty years. In 2019, plan to ditch your dated email marketing platform and switch to a true marketing automation platform that can leverage web, social, and other delivery channel components.

5. Analytics

 Credit Unions are definitely working hard on this trend. Within the credit union industry, many credit unions have purchased analytics platforms. Other credit unions have hired data scientists. There are even two distinct credit union analytics conferences now that are phenomenal: AXFI and CUAnalytics.

The industry is aware of the power of data and is actively working to leverage analytics. A terrific example is CU Rise, which was built on the OnApproach platform. CU Rise took data pools, ran them through machine learning and watched as their initial attrition model went from a 6x better prediction to 9x within a few weeks. This is the future.

However, analytics go hand in hand with Marketing Automation. If you don’t know how to leverage and use the analytics or you aren’t prepared to invest in both sides, analytics alone won’t do you much good!

6. Artificial Intelligence & Machine Learning

This trend is hot and it is only getting hotter. Every single FinTech I saw at the latest event I attended was using Machine Learning in their product. All of them…

When thinking about AI/Machine Learning, I want to provide a key perspective here. In March, Bank of America launched Erica, a natural language/AI based chatbot. Within six months, approximately 45% of BofA’s customers were using it. It took 25 years for ATM’s to get that same adoption rate. It took Amazon’s Alexa two years to get that adoption rate. This trend is speeding up and getting hotter. Be on the lookout in 2019 for my book on this very topic. AI and Machine Learning is the future.

7. IT Security

This topic is still cyber hot, and credit unions continue to be well aligned at the forefront of key cyber trends. The main thing I noticed this year is that the hot labor market that I predicted for 2018 has gotten even hotter. This tight labor market is making it difficult for credit unions to find cyber experts. Furthermore, the NCUA’s focus on SIEM (Security Incident Event Management) continues to crank up the pressure.

So, as we approach 2019, sit down with this list, your executive team, and your Board. Start talking (out loud) about each of these trends and how each trend may impact your Credit Union. How might each trend change your members’ perceptions and/or expectations? What should your Credit Union be investing in? Now is the time to set yourself up for a successful 2019 because tomorrow is too late.

If you’d like to talk to discuss how any one or more of these trends specifically affect your Credit Union, please reach out to me directly at kdrake@cu-2.com. I love to talk about technology trends.

Happy Holidays!

CU 2.0 Fintech Friday: Envel

It’s CU 2.0 Fintech Friday! Today, Chris Otey sits down with Envel to discuss all things credit union, fintech, and digital innovation.

Envel seeks to help people practice healthy spending and saving habits with a mobile bank app. The service works to curtail reckless spending by building daily and weekly budgets based on a person’s financial situation.

Envel has a very strong social mission that aligns with the philosophy of credit unions and community banks. They want to help their members consolidate their finances and regain control. Envel licenses its technology to financial partners who share their mission.

Sometimes people who spend too much money need limits—a hard stop. While the app automatically creates a monthly budget, one of its stricter controls can actually cut off access to funds for a short period of time. Founder Dimitri Artamonov claims that the dream scenario is to be in a shoe store with a $500 pair of boots, getting their card declined and feeling embarrassed in front of the entire line. “That’s the kind of emotional support people need,” he says.

If this sounds like an intriguing credit union–fintech partnership, check out the video and company snapshot below!

Credit Union Fintech Snapshot: Envel

Top 3 Problems Solved

  1. Budgeting
  2. Saving
  3. Curtailing spending with a hard stop

Envel Co-Founder: Dimitri Artamonov

Envel Market Strategy

Credit unions and community banks.

Credit Union Fintech: Envel in the News

Envel uses AI and behavioral insight to protect consumers from themselves

Consumer behavior drives new financial technology

Interested in seeing more fintech entrepreneurship? Check out the CU 2.0 fintech infographic, Death by 1,000 Cuts. You can see firsthand the impact fintechs have had on the credit union industry, as well as how fintech innovation can improve your income statement, balance sheet, interest margin, services, and more.

Credit Union 2.0 believes fully in the power of credit union and fintech partnerships. With the shared goal to redefine multifaceted financial services models look like to members, more credit unions are looking to partner with forward-leaning fintechs.

If you want to learn more about credit union–fintech partnerships, click here.

Check out other fintechs in the series here!