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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!

CU 2.0 Podcast: Series 13 -AI for Credit Unions

It’s the Credit Union podcast! CU 2.0 is excited to bring you the thirteenth 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.

Welcome to AI, Part 1 in the CU2.0 Podcast series.  Next week we’ll post AI, Part 2, an exploration of voice and AI. This week looks at a company focused on text and AI. Both are products of the DCU Fintech Innovation Lab in Boston – a podcast about that here.

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

Why? It’s because a lot of credit union work is mundane, tedious, boring really. It needs doing, no question, but how best?

Enter Coalesce. The company’s tagline says it all:  “AI software that automates tedious work for financial services.”

You’re not interested because credit unions are special? Coalesce is in the DCU Fintech Innovation Lab in Boston – hear the podcast about the lab here – and it is already working with Digital Federal Credit Union, BECU, and the NASA credit union, among other financial institutions (including some megabanks). It has a good credit union pedigree.

The Coalesce focus is on automating monotonous, rote work, particularly around handling incoming member emails (70% it turns out can be answered by machines) and also auto loan applications. Hunting for fraud is another, promising avenue for AI.  AI, it turns out, is good doing these jobs faster and cheaper than people.

Are the machines taking over? Greg Woolf, the Coalesce founder and CEO, laughed at that.  For good reason. The Coalesce version of AI is built around input from people who also are in charge.

Put away those Matrix fears and come for a ride into tomorrow where machines do a lot of the work people honestly don’t want to do and the machines are good at it.

Click the photo below to listen now!

credit union AI

Check out other podcasts in the series here!

Credit Union Fintech Series: CU 2.0 & Edmit

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

Choosing a college or university is already a long, difficult process. Not only do prospective students have to navigate the intricacies of various school’s areas of emphasis, academic climate, and social scene, but they also have to worry about location and logistics.

Edmit looks to simplify the process across the board. By analyzing available financial data and academic goals, Edmit seeks to provide prospective students with the information they need to choose the academic institution that’s right for them.

Founded by former university leaders, Edmit offers personalized insight and advice to help families find colleges that meet their academic goals and are within their financial means. Families that use Edmit make smarter college choices, leading to less debt and better earnings outcomes.

Especially at a time when students are graduating with more debt than ever, but in which wages haven’t increased to meet that level of debt, it’s more imperative than ever to make healthy financial decisions when searching for the right university. Using Edmit ensures better financial stability after graduation.

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

Credit Union Fintech Snapshot: Edmit

Top 3 Problems Solved

  1. Ease college search
  2. College planning
  3. Financial planning

Edmit Founder: Nick Ducoff and Sabrina Manville

Edmit Market Strategy

Financial institutions and college-bound families.

Credit Union Fintech: Edmit in the News

Edmit models college-shopping on home-buying principles

Edmit helps families understand the price of university education

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 12

It’s the Credit Union podcast! CU 2.0 is excited to bring you the twelfth 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.

This week, Robert sat down with Bill Bynum, CEO of Hope CU.

Hope. That one word powerfully sums up the mission of Hope Credit Union, a Mississippi delta based community development credit union with more than $280 million in assets.  And Hope is bringing financial hope to people across the deep south who may not have had a lot of that.

How does Hope do this and stay solvent? Listen up to what Bill Bynum, Hope’s CEO, has to say on that, as well as his provocative views about the real mission of credit unions in today’s America, the CFPB, and a lot more.

Note: there is a bit of ambient noise in this recording. But it does not hinder listening or comprehension. A small annoyance at worst.

Click the photo below to listen now!

credit union podcast

Check out other podcasts in the series here!

Credit Union Member Growth

Credit union membership growth! How do you measure it? It seems like a simple question, just like “where can I get the best burger in town?” seems like a simple question. However, once different interpretations of what constitutes a new member—or a good burger come into play—things don’t stay so clear.

I have been on the Board of Directors at South Bay Credit Union for the last 11 years. At almost every board meeting, our COO delivers the monthly new member report. We seem to grow by a certain percentage each month, yet we have had roughly the same number of members for the last decade. How does that happen? Member attrition.

Understanding Credit Union Member Attrition

Member attrition is not a focal point of many credit unions. It certainly wasn’t for SBCU until just last year. I don’t know why I had that epiphany about focusing on attrition, but I did.

It forced us to focus on why members were leaving, which members were leaving, and where they were going. In my opinion, there are members whom we don’t mind leaving. Let that sink in for a minute…

Not all members are good members participating in the cooperative. Just like a team is only as strong as its weakest player, a cooperative is only as strong as its weakest link. Think of the Great Wall of China. It kept China safe for centuries until the gates were opened from the inside and the Mongols walked right into China and took over. The weak link was the open door in the hundreds of miles of brick wall.

Armed with the data on which members we were losing, why we were losing them, and where they were going, we were able to address a growth strategy in a tactical manner. Intuition is great, but data is factual. Using data, we were able to “farm” our existing members and cultivate those members to be our most profitable and highest participating members.

Knowing why members leave and which ones you want to keep allows you to fix the reasons why those members leave. The first step in membe

r growth is to stop the bleeding. You can add 50 new members per day, but if you’re losing 50 per day as well, you’ll never grow.

Credit Union Size vs Member Growth

Now that we have fixed the leak in membership, it is time to start adding net new members. Take a look at this study from NCUA. Can you explain to me why the larger the credit union, the greater the new member growth?

credit union member growth

My guess is that the larger credit unions grow because of their ability to spend on advertising. TV, radio, print, online, etc. are all things smaller credit unions struggle to do at scale.

However, that is changing daily. We are moving from a one-to-many toward a one-to-one marketing environment. Tailoring the message to the individual potential member you are targeting is a much more cost-effective way of doing this.

Credit Union Member Growth via Smarter Advertisement

One-to-many marketing does work. It’s inefficient, but it does work. One-to-one marketing works better, though. If you know who you’re marketing to, you can ensure that you and your prospect are well-suited to one another.

To put it in terms you might be more familiar with, think of it as the RFP process. If I run a core provider or mobile banking provider, I probably get 50 or so RFP’s to complete each month. Some vendors will complete all 50 and hope for the best. If they complete all 50, they will likely get included in 25 searches, do 10 demos, and get 5 new clients. The more efficient vendors will evaluate all 50, score the potential for winning by developing an ideal prospect persona, reply to those 25 that fit their ideal client profile, do 20 demos and get 10 clients. Double the clients, half the work, a pretty good model.

New member acquisition is the same. You can advertise to thousands with your generic message, onboard as many as you can, and then have 40% of them leave because they are not a fit for your credit union (they are not your ideal member). Or, you can use technology to find the potential members that fit your ideal member persona, target them specifically, and onboard the same number of new members who will not leave. And you can do that for half the cost.

The first step is identifying your ideal member or persona, which you will have already done while examining member attrition. Then, find the right partner to help you put your message in front of them at the right time in the right context.

There are several examples of this being done and CU 2.0 would be happy to help you. Contact us here.

And, for the record, the best burger in town is from In-N-Out.

CU 2.0 Podcast: Series 11

It’s the CU 2.0 podcast! CU 2.0 is excited to bring you the eleventh 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 credit union digital presence.

This week, Robert sat down with  Jay Murray, CEO of Vizo.

Think corporate credit unions died? Think again. Jay Murray, CEO of Vizo, a large corporate that’s the product of a merger between Mid Atlantic and First Carolina, is bullish on the future of corporate credit unions and he thinks they just may be essential to the survival of many thousands of small credit unions.

He’s probably right.

But Jay has more to say.  He talks about Vizo’s push into offering cooperative back office technology solutions, at affordable rates, to hundreds of small credit unions.  He’s attacking the hegemony of for-profit vendors and that just may be a very cool thing.

Murray also has profound thoughts about the importance of cooperatives cooperating with other cooperatives, for mutual benefit. That means looking for ways to work with, say, rural electric cooperatives, food cooperatives, and just about every other kind of cooperative. What cooperatives are you working with?

This is a good podcast with plenty of insights into what tomorrow might look like for small credit unions and it may be more cheerful than you think.  Are small credit unions dead men walking? Murray says no way and he tells why he is optimistic.

Click the photo below to listen now!

corporate credit union cu 2.0 podcast

Check out other podcasts in the series here!

CU 2.0 Podcast: Series 10

It’s the Credit Union podcast! CU 2.0 is excited to bring you the tenth 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 credit union digital presence.

This week, Robert sat down with Amy McGraw, Tropical Financial and spoke about the Student Loan Crisis.

Here’s a terrifying number: Total outstanding student loan debt is $1.5 trillion. The average student leaves college owing north of $28,000. Talk about dream crushing. Talking about downscaling.

Enter ChangEd. It’s an app that says it can help graduates pay off debts faster by harnessing their pocket change. Automatically. Pretty much painlessly. Tropical Financial, the Florida credit union, is in a pilot program to show the power of pocket change. That’s what Tropical Financial vice president Amy McGraw tells us about in this podcast. Student loans already are impacting the ability of many credit unions to make loans to debt-burdened would be borrowers. That can put home purchases on hold. Ditto cars. So finding a way out is critical. ChangEd just may be the path.

At Tropical Financial, the hope is that by helping student loan holders pay off their debts faster, and with little pain, the credit union will gain visibility with Millennials in particular.

But, mainly, it’s also just about walking the credit union talk which means helping members live better financial lives.

Click the photo below to listen now!

Check out other podcasts in the series here!

CU 2.0 Podcast: Series 9

It’s the CU 2.0 podcast! CU 2.0 is excited to bring you the ninth 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 credit union digital presence.

This week, Robert sat down with  Tanan Miles, Vice President of ENT Credit Union.

Do you dream of being in control of your credit union’s digital presence?

Stop dreaming, start doing. Find out how in this podcast as Ent vice president Tanan Miles explains how the Colorado institution has full control of the UI of its digital presence.

How cool is that when the most important branch for most credit unions is online and mobile access?

Ent, by the way, has compelling numbers to show the emerging dominance of mobile. 34% of its members are mobile exclusive – that is their only way to access the institution. And 75% of the online sessions now are mobile.

Which means you want to start controlling your institution’s digital presence.

Click the photo below to listen now!

credit union digital presence

Check out other podcasts in the series here!

Credit Union Strategic Planning Topics

Ahhh, credit union strategic planning topic season. Let’s take off our pessimistic blinders, pull out our beanies and start thinking of the credit union world we want tomorrow. Soon, our credit union will disrupt the local banks. We will put them those evil bankers out of business and take over the world… cooperatively (of course).

If you are looking for quick strategic questions to ask your board at your credit union planning session, you are in the right place.

Credit Union Strategic Planning Topics About Growthstrategic planing for credit union topics

  1. If you had to process 3x your normal loan or member growth volume, how would you?
  2. Where do you want to be in 3 years?
  3. What market trends support that vision?
  4. What client demands support that vision?
  5. What are the tactical plans to support that goal?
  6. What are the known risks?
  7. If you could rebuild the credit union 2.0, what would it look like?
  8. What are the top 10 questions we have about our credit union (analytics based)? What would you do differently if you knew the answer?

Credit Union Strategic Planning Topics for Critical Self-Evaluation

    1. What is the one thing your credit union was worst at this year? What needs to happen to fix it?
    2. What is one thing your credit was best at? How can you double down on it?
    3. What is the single metric that you least like hearing about this year? Why? What can you do to change it?
    4. Where do we use Analytics well?
    5. Are we moving or reacting fast enough in the marketplace?
    6. In each department, what should you start? What should you stop? What should you continue?
    7. What are our best service experience and memories?

BOOK NOW!

Credit Union Strategic Planning Topics About Culture

  1. What are some examples of living your core values?
  2. What are some examples of failing to live your core values?
  3. If you could change one thing about the credit union, what would it be?
  4. What are the top 3 credit unions we admire and why?
  5. What does the perfect member look like? Where do they hang out? Who do they know?
  6. What makes an ideal board member?
  7. If you were the new CXO and were brought in tomorrow, what were three things you would fix immediately?

Credit Union Strategic Planning Wildcard Questions

  1. If a perfect competitor opened across the street tomorrow, what would they look like?
  2. If we were to rebuild our credit union with no branches, what would it look like?
  3. If the NCUA got merged into the FDIC, what would change?
  4. If your largest SEG went out of business, what would you change?

Any of these credit union strategic planning topics can help you and your board plan for a brighter, warmer future.

Credit Union 2.0 — Credit Union Strategic Planning Facilitators

Kirk Drake and Chris Otey take a unique approach to planning sessions. Their goals are to deal with some of the real issues facing credit unions. These include:

  •                 Who is your ideal member?
  •                 How do we improve board governance?
  •                 How do we get our board to look more like our membership?
  •                 How do we deal with the onslaught of fintechs and technology?
  •                 How do we change our culture to be more like a fintech?

As the author of Credit Union 2.0, head of a large technology CUSO, and founder of CU Wallet, Drake has great insights from both his time working at a credit union through his entrepreneurship and board experience.

As board chair of South Bay Credit Union and former CU Wallet and Fiserv executive, Chris has worked with hundreds of credit unions to help them deal with board governance, CUSOs, and other technology challenges.

Click here to book!

Credit Union 2.0 — Strategic Planning Options

DREAM (Based on the CU2.0 Book)

Credit Unions are under unprecedented attack from all angles. Thousands of fintechs are collectively hurting the bottom line. Regulators are slowing the industry down.

Credit Union 2.0 outlines the DREAM (Differentiation, Repeat and Reinforce, Educate and Excite, Automate and Motivate) methodology that will help your credit union begin the process of digitally engaging your members, building fierce loyalty, and making them feel the credit union difference.

The Credit Union 2.0 movement teaches why we need to change. It emphasizes key case studies from awesome credit unions, lessons learned from other cooperatives, and strategies for creating fierce loyalty.

Some highlights from Credit Union 2.0 include The ultimate first 100 Day Experience, Hacking your CU’s Repeated Mistakes, and Education = Trust | Trust = Sales.

Finally, Credit Union 2.0 will provide an optimistic outline of the credit union of tomorrow. Such a credit union digitally engages members, builds fierce loyalty, scales gracefully, and makes your members feel like they own the place!

PAINT

Kirk Drake, a serial entrepreneur focused on credit union technology and author of CU 2.0, reveals his P.A.I.N.T. strategy you can use to make your credit union more competitive, more creative and more in tune with today’s digital expectations.

If you have struggled with corporate culture, agility, moving faster, or competing with the onslaught of new Fintechs, the P.A.I.N.T. methodology will help your credit union quickly iterate and apply key “Operating System” Strategies to better engage your members.

Take home these 5 tools:

  • Painted Picture
  • Analytics Plan
  • Innovation and Agility Hacks
  • Nimble Algorithms
  • Terminate

Related Content

Credit Union Planning Session Facilitators

Credit Union Planning Session Process

Credit Union Strategic Planning Process

What is a credit union strategic planning process and why should you use one? If you are a new credit union executive or are thinking of doing your first credit union planning session, this article outlines the process and methodology credit unions use.

Credit Union Strategic Planning Process

The credit union strategic planning process is the steps that you go through as an organization to determine:

  • Vision: the direction of your organization.
  • Mission: what you’re going to do and for whom.
  • Goals: how to measure it and guide your strategy to get to where you want to be.

Before we get into the process, it is important to revisit why we do credit union strategic planning processes. There are 5 main components:Strategic Planning for Credit Unions

  • Get your team on the same page. They should be aligned with the credit union’s vision, mission, and goals.
  • Maximize resources.
  • Understand trends, scenarios, and situations that might impact the credit union in the future.
  • Determine the best ways to accomplish your goals.
  • Develop implementation plans and goals for your team.

A strategic plan is a key tool for your employees, leaders and board members to make sure everyone knows where we are going and why.

The process used to create your credit union’s strategic plan is every bit as important as the plan itself. Then, the method for communicating, updating, and re-evaluating it is essential.

Ultimately, we all have more things we want to do than resources allow. We must therefore prioritize and make tough choices so that we can deliver and get to the next level.

4 Considerations for Credit Union Strategic Planning

  1. How did our credit union get here today?
  2. Where do we want to go, and what are the Champagne moments we will celebrate when we get there?
  3. What might get in our way?
  4. What resources (people, budget, etc.) will we need to get there?

So how do you get there?

Credit Union Strategic Planning Step 1: Gather Inputs

In this first stage we want to gather what has worked from the past. Any credit union performance data, staff surveys, or member surveys are key.

What are the outside factors? Community, political, SEG, economic, social, regulatory or technology that you are concerned about? What keeps you up at night?

SWOT—Strengths, Weaknesses, Opportunities, Threats—make sure you know internal and external factors that impact your credit union.

Credit Union Strategic Planning Step 2: Vision

What will your credit union look like in 5 years?  What is the Champagne moment when you get there? Is it your number of members, your loan portfolio, etc?

Why is this important? What will the impact be if you get there?

Credit Union Strategic Planning Step 3: Mission

Why was your credit union created? What is your mission? Why is that important and who is it for?

Credit Union 2.0 highly recommends creating a painted picture or Vivid Vision to develop these inquiries.

Often as leaders we feel that we have better intuition—in fact, we just know where we are going. The painted picture and Vivid Vision help with that.

Credit Union Strategic Planning Step 4: Values

What are the values that represent the credit union? People helping people? These are about having values that everyone agrees to and are understood.

What are the behaviors that your best employees exhibit? What are the things that won’t be tolerated? What is it like to be an employee at your credit union?

Credit Union Strategic Planning Step 5: Competition and Roadblocks

What could go wrong? What might change in the marketplace? Which competitors should we watch and learn from? Which should we watch and avoid?

Credit Union Strategic Planning Step 6: Priorities, Goals and Tactics

This is where the fun begins. Take the big picture and tie it into your credit union strategic planning process.

Make a list of priorities and action plans that align with your vision.  Prioritize the key items and build a timeline, goals, and measurements.

Credit Union Strategic Planning Step 7: Communication Plan

Who needs to know? What should we communicate? What are the key milestones?

Build a communication plan to board members, employees, and members that will make sure everyone knows what is coming, where you are going, and how you will know when you get there.

Credit Union 2.0 — Credit Union Strategic Planning Facilitators

Kirk Drake and Chris Otey take a unique approach to planning sessions. Their goals are to deal with some of the real issues facing credit unions. These include:

  •                 Who is your ideal member?
  •                 How do we improve board governance?
  •                 How do we get our board to look more like our membership?
  •                 How do we deal with the onslaught of fintechs and technology?
  •                 How do we change our culture to be more like a fintech?

As author of Credit Union 2.0, head of a large technology CUSO, and founder of CU Wallet, Drake has great insights from both his time working at a credit union through his entrepreneurship and board experience.

As board chair of South Bay Credit Union and former CU Wallet and Fiserv executive, Chris has worked with hundreds of credit unions to help them deal with board governance, CUSOs, and other technology challenges.

Want to know the other options in the industry?  Click here for the Facilitators Guide

Credit Union 2.0 — Strategic Planning Options

DREAM (Based on the CU2.0 Book)

Credit Unions are under unprecedented attack from all angles. Thousands of fintechs are collectively hurting the bottom line. Regulators are slowing the industry down.

Credit Union 2.0 outlines the DREAM (Differentiation, Repeat and Reinforce, Educate and Excite, Automate and Motivate) methodology that will help your credit union begin the process of digitally engaging your members, building fierce loyalty, and making them feel the credit union difference.

The Credit Union 2.0 movement teaches why we need to change. It emphasizes key case studies from awesome credit unions, lessons learned from other cooperatives, and strategies for creating fierce loyalty.

Some highlights from Credit Union 2.0 include The ultimate first 100 Day Experience, Hacking your CU’s Repeated Mistakes, and Education = Trust | Trust = Sales.

Finally, Credit Union 2.0 will provide an optimistic outline of the credit union of tomorrow. Such a credit union digitally engages members, builds fierce loyalty, scales gracefully, and makes your members feel like they own the place!

PAINT

Kirk Drake, a serial entrepreneur focused on credit union technology and author of CU 2.0, reveals his P.A.I.N.T. strategy you can use to make your credit union more competitive, more creative and more in tune with today’s digital expectations.

If you have struggled with corporate culture, agility, moving faster, or competing with the onslaught of new Fintechs, the P.A.I.N.T. methodology will help your credit union quickly iterate and apply key “Operating System” Strategies to better engage your members.

Take home these 5 tools:

  1. Painted Picture
  2. Analytics Plan
  3. Innovation and Agility Hacks
  4. Nimble Algorithms
  5. Terminate

Related Content

https://cu-2.com/select-credit-union-strategic-planning-facilitator/