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MRDC 2.0 And Your Credit Union 

By Robert McGarvey 

 For CU2.0  

A new report from RemoteDepositCapture.com makes plain that mRDC now is a must for credit unions.  Declared the report: “mRDC is no longer a competitive differentiator, but instead a ‘must-have’ offering Financial Institutions need simply to remain competitive.” 

Without mRDC you just may not be competitive. That’s a stinging reality. 

This claim, incidentally, is underscored by a separate report, led by the Federal Reserve of Boston, that claimed 73% of the institutions it surveyed already offer mRDC and another 18% “plan to offer.”  Just 9% don’t have mRDC on their dance cards. 

Small credit unions are very much included among the adopters. Said the Fed: “ Even among the smallest respondents, 78 percent support or plan to support mRDC within two years “ It defined “smallest respondents” as < $100M in assets. And just 22% of them have no plans to offer mRDC. 

Big institutions are all aboard. Among institutions with assets >$1 billion, the Fed said 92% already offer mRDC and only 3% have no plans to follow. 

mRDC has become a must have.  That’s a key reality in today’s new reality where we have entered the era of mRDC 2.0. Now the focus is on new uses, more usage by members, and there also is a wholly new kind of thinking around mRDC fraud and how to combat it. 

A lot has happened to mRDC since 2009 when USAA debuted mRDC.  A handful more joined the chase in 2009-2010. But then the race was on at full speed inside most CUs to offer mRDC. 

Initially many credit unions grumbled about the fees associated with mRDC – fees charged by third party processors – but, by now, most larger institutions have simply decided to suck up the added costs, which incidentally usually are much, much lower than the costs associated with a paper check deposited at a branch. 

That’s a fact: mRDC saves a credit union money.  While expanding the convenience and utility of the account to members who now can make deposits while dressed in their PJs and sitting at the breakfast table.  That is cool and it ultimately is why mRDC usage will remain popular as long as paper checks circulate and these days about 17 billion of them get written in the US annually.  That number continues to slip down but it will be years before checks vanish (and aren’t we all waiting for the long predicted death of cash?). 

Face it: checks are hanging around and so will mRDC because it just is so much better than driving to a branch or to an ATM. 

John Leekley, CEO of RemoteDepositCapture.com, said many institutions have gotten increasingly more skilled at their mRDC offerings. 

A plus: Leekley pointed to data that shows a 35% year over year increase in mRDC transactions which means more checks are getting deposited this way. 

Are more fraudulent checks also getting deposited? Roll back the clock and that was a huge fear among many credit union execs, some of whom stalled when it came to rolling out mRDC.   

Today’s take is very different, said Leekley, who indicated that his survey found that “the vast majority (74%) of respondents indicated they had no losses directly attributable to mRDC.” 

That means zip. 

The big fear still revolves around duplicate deposits – depositing the same paper at multiple institutions – but the numbers don’t show there is a threat of any real magnitude. Leekley’s report goes on: “Exclusive to RemoteDepositCapture.com, the industry’s mRDC Duplicate Loss Rate in 2016 was just 0.035%, or 3.5 in every 10,000 items. To put this in perspective, according to the Federal Reserve, the industry’s overall return item rate was 0.4%, or approximately 40 out of every 10,000 checks deposit.” 

What’s next for mRDC? Most credit unions now appear to want to get more consumers depositing more items with mRDC. 

Leekley also indicated many institutions are giving a re-think to mRDC deposit limits. Traditionally, some institutions set very low limits, to manage exposure to fraud. But, said Leekley, more effective and more consumer friendly approaches involving smart use of big data are taking hold.   

Many institutions also are looking to increase business use of mRDC, added Leekley, who said this was a big frontier for many.  Exactly how will be a huge topic of discussion and exploration this year but know this: now is the time for you to begin to seek to push mRDC usage into new arenas. 

It’s a good tool, it works. Let its success fuel your institution’s.  

Wrestling with Your Digital Talent Gap

By Robert McGarvey

For CU 2.0

 

Wake up to a frightening reality: very probably your credit union is falling behind in the race for digital talent and that just may be a sound of impending doom.

Consulting firm CapGemini, working with LinkedIn, recently issued a report on The Digital Talent Gap and the takeaways for credit union executives have to be frightening.

According to CapGemini, six in ten banking executives acknowledge they face a widening talent gap. The report pinpoints banking as a sector where the gap is especially high.

The money center banks, almost certainly, are not pointing to themselves. They are busily hiring top digital talent as they chart their paths into a 21st century where digital is seen at the core of banking.  They see that future and they are preparing for it.

Down a checklist, CapGemini sees less skill than is needed in a range of digital activities that are central to banking today. Included on the list are cybersecurity, mobile apps (where a big skill deficit is cited), data science, and big data (another huge gap).

A lot of what has become core in delivering financial services is now emerging as areas where many, many credit unions and community banks are just not keeping up because they don’t have the talent to stay in the game.

Employees know these realities. According to the survey data, 30% of banking employees believe their skills will be redundant in one to two years. 44% believe their skills will be redundant in four or five years.

That suggests a frightened, anxious workforce.

Employees also express dissatisfaction with trainings offered them by their organization.  45% say they are not helping them attain new skills.  42% say the trainings they attend are “useless and boring.”

Ouch.

Question: does your credit union leadership know their own employees fear their institution is lagging in the race for digital competence – and that they despair over the viability of their own skills?

It gets worse. You just may lose the digital talent you presently have. The CapGemini survey found that “over half of digital talent (55%) say they are willing to move to another organization if they feel their digital skills are stagnating.”

The good news: CapGemini offered concrete suggestions about what organizations need to do to remain players in the race for digital talent.

A suggestion not on the list is blunt: credit unions often will need to find their digital talent through third party vendors and CUSOs.  No shame in that.  At a certain institutional size, the savvy survival strategy is to know where to go outside to help chart the credit union’s digital path.  There still needs be digital skills internally – especially a sharp sensitivity to what matters digitally inside the c-suite.  But a lot of the digital heavy lifting can and should happen through third parties at all but the very largest credit unions.

But even the biggest credit unions need to be sure they are nurturing internal digital talent. And smaller institutions need to know what they can do with the talent they have and they also need to stay watchful of their third party vendors and their talent development efforts.

Just because a CUSO was spot on technologically in 2010 doesn’t mean it has a clue today. Things move very fast in this world.

That’s where the CapGemini suggestions about how to develop digital talent come in.

And step one is Attract Digital Talent where CapGemini points a finger at the institution’s leadership.  Specifically: “Align leadership on a talent strategy and the unique needs of digital talent.”

How does your credit union measure up there?

Does your leadership see the ultimate importance of digital in charting the institution’s future?

The next steps are no easier: “create an environment that prioritizes and rewards learning” and “align leadership on a talent strategy and the unique needs of digital talent.”

Digital warriors go where they are loved and wanted.  It’s that simple.

One more step: “Give digital talent the power to implement change.”

This doesn’t sound easy?

Nope. It all is very hard, especially for small and mid size credit unions.

But the alternative just may be planning to go out of business.

That makes the choice easy.

Credit Union Data Analytics: Risk Awareness

As we continue the Credit Union 2.0 “Almost 99 Small Data Hacks for Credit Unions – guide” series, today we are covering risk items for internal consumption only. While many of our hacks are targeted at proactive marketing, these hacks are key insights you can gather internally from your member data.

This is the fifth post in a 9 part series. If you can’t wait for next week and want the full “Almost 99 Credit Union Small Data Hacks Guide” click here!

Credit Union 2.0 – A Guide for Helping Credit Unions Compete in the Digital Age covers in depth both big and small data for credit unions. There are six types of data that your Credit Union should be aware of:

  1. Digital Analytics – Desire
  2. Profitability – Fit
  3. Wallet Share – Depth
  4. Transaction – Triggers
  5. Design Data – Predictive
  6. Execution – IFTT (if this than that)

This list is by no means comprehensive and Credit Union 2.0 does not offer any compliance advice for any state or federal laws on the impact of using this information.

Risk Analytic Where to find it? Potential Conclusions
Minimum Payments Credit Card Data If you see members reducing their payments over time on their credit card payments, this may indicate an increased risk of default or challenging cash flow situation for your member.
Member locks themselves out Online Banking Proactively reach out if the member locks themselves out. Call their phone on record, don’t just wait for the member to call in. A frustrated member will appreciate this.
Duplicate Addresses Monthly Report of more than one member with the same address Could indicate a stolen identity
Duplicate SSNs Monthly Report of more than one member with the same SSN Could indicate a stolen identity
Duplicate Driver’s License Monthly Report of more than one member with same Driver’s License Could indicate a stolen identity
Delinquent Loans by Indirect Lender Loan System Could indicate an indirect auto dealer encouraging members to lie about income
Loans without payments Monthly report of loans with new payments Possible indication of fraudulent loans
Loans with payments made at the teller line Loan payments by teller/channel Possible indication of fraudulent activity
Loan types and dollar consistencies by MSR Loan applications by channel and person Possible indication of fraudulent activity

 

Have an idea or risk related data algorithm? Submit it to the Credit Union 2.0 team today by emailing us at info@cu-2.com and help us improve this post!

Want to learn more about how your fellow Credit Union leaders are using data? We invite you to join our Credit Union 2.0 Strategist Group where over one thousand industry leaders comment on new news and trends while sharing and learning from one another.

This is the fifth post in a 9 part series. If you can’t wait for next week and want the full “Almost 99 Credit Union Small Data Hacks Guide” click here!

In case you missed it:

Click here for part one of the data analytics series.

Click here for part two of the data analytics series.

Click here for part three of the data analytics series.

Click here for part four of the data analytics series.

Predictive Analytics for Credit Union: Member Limits

In the first several posts in this series, we covered key insights that can be gathered from address changes, payroll changes, and fees as part of our “Almost 99 Small Data Hacks for Credit Unions” series. Next up, we will dive into credit union services and limits that can sometimes negatively impact your relationship with a member.

This is the fourth post in a 9 part series. If you can’t wait for next week and want the full guide “Almost 99 Credit Union Small Data Hacks Guide” click here!

Credit Union 2.0 – A Guide for Helping Credit Unions Compete in the Digital Age covers in depth both big and small data for credit unions. There are six types of data that your Credit Union should be aware of:

  1. Digital Analytics – Desire
  2. Profitability – Fit
  3. Wallet Share – Depth
  4. Transaction – Triggers
  5. Design Data – Predictive
  6. Execution – IFTT (if this than that)

Most credit unions have several potentially confusing service limits and fees. Exposing some of these can cause undue fraud and sometimes even compliance risk. Consequently, credit unions may want to leverage this data behind the scenes and highly personalized it so as not to broadcast key risks or vulnerabilities to the world.

We explore several of these below.

Service or Limits What could happen? What should you do?
Remote Deposit Capture Setting a low limit universally will frustrate your top members. Design a multi-tiered profile based on key risk data and ensure that you give your best members higher limits.

 

When a member hits a limit, trigger an outbound email explaining how the limit was set and what they can do to change it.

ATM Limits Member is forced to make multiple trips to the ATM to get their business done…frustrating. If you see a member make the same size transaction multiple days in a row, send them a guide on how to request an increase and the pros and cons of doing so.
Change of Address You change it one account, but in a different system you forgot to update. Make a checklist of all of the locations you store addresses and make sure you clean them up everywhere at once.
Check holds Member forgets a hold came off. Ask members if they want to know when holds expire in an email. Offer them a one-click enroll in this option and then send them an email if a hold is removed.
No retirement savings Member struggles to retire Offer easy savings strategy series to members. Provide weekly tips or ideas to help your members save.
Fraudulent ACH Member is confused If a member reports fraud, trigger an outbound email that links back to an overview of how the credit union will help them troubleshoot and resolve the fraud. Update the member at agreed upon times during the investigation/resolution of the issue.
Fraudulent Check Member is confused If a member reports fraud, trigger an outbound email that links back to an overview of how the credit union will help them troubleshoot and resolve the fraud. Update the member at agreed upon times during the investigation/resolution of the issue.
Fraudulent Credit/Debit Member is confused If a member reports fraud, trigger an outbound email that links back to an overview of how the credit union will help them troubleshoot and resolve the fraud. Update the member at agreed upon times during the investigation/resolution of the issue.
Declined Transaction Member is confused and/or annoyed Have guides and information outlined on when and how transactions are declined. Include key troubleshooting strategies to resolve the issue for legitimate transactions. When the decline happens, send an outbound email to the member with a link to the guide.

As in our earlier post on turning negative fees into more positive experience, service limits are a similar opportunity. Anytime your credit union can change confusing non-transparent service items into positive transparent items, you build trust and loyalty from members.

Want to learn more about how your fellow Credit Union leaders are using data? We invite you to join our Credit Union 2.0 Strategist Group where over one thousand industry leaders comment on new news and trends while sharing and learning from one another.

This is the fourth post in a 9 part series. If you can’t wait for next week and want the full “Almost 99 Credit Union Small Data Hacks Guide” click here!

In case you missed it:

Click here for part one of the data analytics series.

Click here for part two of the data analytics series.

Click here for part three of the data analytics series.

How Frightened Should You Be About Amazon Banking?

By Robert McGarvey

For CU 2.0

Think very – that’s the question’s answer. But maybe you already have in hand the exact weapons you need to defend your position.  Surprised? 

Read on. 

Triggering this discussion is a recent Snarketing post by Cornerstone Advisors’ Ron Shevlin that  offered hard data about Amazon’s potential popularity as a consumer bank.  

Cornerstone had surveyed 2015 consumers – with both a bank account and a smart phone – and asked two questions: would you bank with Amazon for a free checking account?  Would you pay, $5 or $10 monthly, for a premium checking account that bundled in perhaps cell phone damage protection or roadside assistance? 

Before guessing the answers – they will surprise you – feast on this recent headline from the Evening Standard newspaper in London: Is data the new oil? How information became the fuel of the future. 

That question is deeply intertwined with Amazon’s possible banking play. 

Ask yourself: what US company knows an incredible amount about you, probably more than any other?  Hint: it’s a company that sells just about everything, much of it delivered free within two days. 

Amazon, very quietly, has emerged as a real king of the data mountain.  Google may know what interests you, Facebook may know who your friends (and enemies!) are, and Apple knows what tech bling you will splurge on, but Amazon – in many households – knows everything you buy, from groceries to clothes. 

In 2017 Amazon tells me I placed 107 orders. Many were for multiple items.  From cat food to an Echo Look.   

Think how well that data resource positions Amazon to pounce into banking.  It knows its many millions of customers, it’s already providing credit cards and purchase credit to millions of them, and CEO Jeff Bezos has never shied away from offering discounts if he believes doing so will produce longterm profits. 

Will Bezos take the plunge into the slow moving financial services world? Do we – consumers – want him to? 

A free Amazon account just might seem to be a threat to a credit union sweet spot. According to Bankrate.com, 84% of credit union checking accounts have no monthly maintenance fee, up from 72% a couple years earlier. For many credit unions, this is a key marketing difference. 

And yet Cornerstone’s research found something interesting.  Asked if they wanted a free Amazon checking account, 42% of consumers said nope.  Just 26% said they would open it.  Another 32% said they would consider it. 

Matters get more intriguing when Cornerstone asked if they wanted a premium, bundled account with a small monthly fee of $5 or $10.  Only 34% said no thanks – that’s sharply down from the 42% who rejected the free account. 

And 29% said they would open it, up from the 26% who said they would open a free account. 

Does free carry less weight than you thought? 

Is it maybe time to rethink using free as the centerpiece of the institution’s marketing? 

Shevlin stressed that, at least superficially, the institutions that would be most impacted by an Amazon entry into banking would be the money center banks, mainly because they are courting millennials who, Cornerstone said, are the ones most attracted to the Amazon potential products.  

But Shevlin tossed out this poisoned dart:  “The smaller financial institutions are already challenged in attracting younger consumers to their institutions. An Amazon entrance into banking will only make it harder for them.” 

And remember this: Amazon may well know your members better than you do. 

Frightening? You bet.  But there is that solution that already is in your hands.  The solution is to fight back by diving ever deeper into member data.  The data will tell you your next steps – if you learn to listen to it. 

Plenty of credit union focused big data experts are adamant that credit unions can fight back against the Amazons. 

Fight data with data. 

You have lots of data, from sharedraft accounts, credit and debit cards, maybe car loans and home mortgages. Use the data you have to prepared a battle plan. 

You will need it because, whether Amazon takes the plunge into consumer banking or not, other non banks will.  They already are circling this pond and they act as though they smell blood in the water.   

You have the data. It’s the only weapon you need.  

And remember that in the 21st century data is indeed the new oil. Let it power your institutional growth. 

Reinvigorating the Credit Union Board for the 21st Century 

By Robert McGarvey for Credit Union 2.0

A two word question recently asked by a credit union board member puts in a starkly bright light the challenge many, many face: “What’s fintech?” No need to embarrass this board member who will remain anonymous. In fact this director may deserve some applause for knowing what he didn’t know. 

But a 2018 reality for many credit unions is that they need to confront a big question: do we have the right board to survive and thrive in the 21st century? 

The answer in just about all cases is that, no, you don’t have the right board. Parts may be exactly right but almost certainly there are changes that must be made as every credit union confronts the imperative to digitally transform. 

Smart boards – and smart credit union CEOs – are already tackling this issue. 

You’ll remember that in 2011 NCUA threw down the challenge that directors have to demonstrate a measure of financial literacy. There was grumbling about that but, really, it’s essential and important. 

Just maybe there now should be a requirement that board members have a measure of technology literacy. Not enough to write code. But enough to pay a bill in a mobile banking app, deposit a check with mRDC, and send a p2p payment to a relative. Financial services are migrating to the mobile phone and the institutions that plan to be around will have leaders who understand and use technology. 

Your board has a distance to cover? 

Join the club. 

But know that some are taking steps to get there and they will share what they know. 

At South Bay Credit Union in California, board chair Chris Otey said that a focus has been on creating a board that’s ready for today’s challenges and, said Otey, there are two ways to do this. 

First: commit to ongoing education of the board. At South Bay, most board members will do an educational conference each year. CUES, CUNA, and many state leagues offer good educational programming that can help directors adapt to the 21st century.  

Is that asking too much of volunteers?Sarah Snell Cooke – former editor in chief of Credit Union Times and now a consultant in Maryland – said she fully supports increased educational requirements for board members. She added: “Not just a webinar or one conference. Some feel like that’s asking a lot from volunteers, and it is but if you’re not prepared to do the job to the best of your ability, don’t sign up.” 

Jennifer Kurttila Zanassi, CEO of Western Heritage Credit Union, said: “My board has attended the certification at CUNA for board members. After the class, they came back so much more involved and energized.” She added:  “I’m truly blessed with a great board.” 

But don’t stop with conferences, Make tech education a continuing focus. At South Bay Credit Union, for instance, Otey ups the educational ante by personally leading a short – perhaps 10 minute – tech focused segment at each meeting. His goal is to update directors on tech developments, emerging threats, and innovative steps other credit unions are taking. Said Otey: “Every credit union should have an employee or board member regularly update the board on tech. It’s become essential.” 

The second step: “we have actively recruited new board members,” said Otey. Recently, for instance, he persuaded a 28 year-old member with good tech fluency to join the board. Such approaches aren’t always successful, Otey acknowledged. But he sees this as a necessary part of keeping a board strong. 

In a similar vein, Cooke said she “recommends a board assessment, preferably by a third party, but those can be politically touchy and expensive. Honest self-assessment can be useful as well. The chairman should collate and review the self-reported strengths and weaknesses to determine subject matter areas that need a boost when it comes time to recruit new board members.” 

That’s now a necessity. Recruit to fill needs. Said Otey: “You can’t wait for new board members to find you. You have to go out and find them.” 

Bottom line: “Your board can’t look and behave the way it did in 1987,” said Otey. Succeeding in the 21st century will take a 21st century board and the only way to get there is to start making changes now. 

Who Do You Trust? A Credit Union Misstep 

By Robert McGarvey 

For Credit Union 2.0  

 

Call it a core credit union marketing misstep: there’s wide assumption that consumers trust credit unions more than banks. 

Rubbish. 

They should, I’ll readily acknowledge that, but there is no persuasive evidence that credit unions in fact score any higher in consumer trust than do banks. And banks really stumble in trust ratings, a fact underlined in the recent Landor Pulse analysis of financial services organizations. Guess what came in first? 

PayPal, which, per Landor, emerged “the clear leader.” It came in as the most trustworthy. By a sizable margin. 

Remember this about credit unions. Kirk Drake, the author of CU 2.0, has pointed out that in the aftermath of the 2008 banking meltdown, which costs innumerable Americans their jobs, their houses, their retirement savings, and everywhere banks were excoriated by angry consumers, credit unions “saw their market share grow by a measly 1%.” 

Chew on that. In 2008, credit unions were handed the ball on the opponent’s one yard line and they could not drive it in for a touchdown. How terrible is that? 

The Landor research findings help clarify what has happened here and it starts with the low esteem in which all financial institutions are held.  

Maarten Lagae, Landor’s senior manager of insights and analytics, said, “Comparing BAV [BrandAsset Valuator, a Landor proprietary metric] data over the past 10 years shows that perceptions of trust have eroded in all industry categories, but especially in the financial sector. In addition to secure assets, the ‘must-have’ for financial services brands is trust. Consumers are increasingly wary of institutions serving motives other than customers’ best interests. This is even more true with millennials, who are the first to engage with businesses that provide transparency and disrupt unequal power relationships.” 

How many focus groups have you seen where consumers say about credit unions, nope, I don’t belong, don’t like ‘em because I don’t like credit and don’t like unions. I know I have seen and heard exactly that a number of times. It’s easy to dismiss it as rooted in misunderstanding. But that consumer still walks past your door without stopping. 

Back to the Landor trustworthiness rankings: in second place is Visa with 25; MasterCard comes in third with 23; American Express comes in 4th with 17%. 

Curiously, other than PayPal, digital tools did not fare well. Apple Pay and Google Wallet are each trusted by 13%. Venmo, PayPal’s kin and widely popular among the young, won just a 10% trustworthy rating. 

What about banks and credit unions? Hang on for bad news. Capital One and Chase are the highest rated at 17%. Bank of America came in at 16%. Wells Fargo, amid its avalanche of bad press, tumbled from 23% in 2006 to 19% in 2016 to 14.5% now. That last ought to trouble credit union and bank executives because it says that many consumers are paying attention to the news and they do know bad press when they read it. And it shows up in these trustworthiness ratings. 

As for what the rankings mean, here’s Landor’s take. “Financial services brands are still seeing an impact from the 2007–2008 crisis, augmented by ongoing issues facing myriad financial institutions over the past two years,” noted Louis Sciullo, executive director of financial and professional services at Landor. “We see credit card brands faring better because of their daily place in consumers’ lives and the relative clarity of their fee model. Meanwhile, PayPal’s high trust ranking stems from the amazing job it’s done to establish confidence in its digital platform.”   

Some 55 financial services brands are rated by Landor. 

No credit union bubbled to the surface in these trustworthiness rankings but don’t assume that means credit unions did fine. 

More likely is that none scored enough notice to win a ranking and that is not an endorsement of the importance of credit unions. 

What to do about that?  Landor helpfully offers a six step program to win more consumer trust: 

  • Be transparent. That means open. 
  • “Be honest – it’s the best policy.” 
  • Have true values you live every day. 
  • Treat your employees well – they are brand ambassadors. 
  • Deliver excellent products and services. 
  • Protect customer data. Breaches are costing every FI reputationally. 

None of that is hard. But many financial institutions struggle with taking these six steps. And that includes many credit unions. 

Bottom line: a lot of financial services companies have sunk in trustworthiness rankings in the last decade. Credit unions have an opportunity to win wider public applause but so far have not capitalized on this. Make doing that job 1 in 2018. 

Data Analytics for Credit Unions: What can you learn from your member’s payroll?

In the last post in this series, we covered key insights and actions you can take when your member changes their address. This post continues takes a similar path and explores what can you learn when your member changes their payroll.

This is the third part of a 9 part series. If you can’t wait for next week and want the full guide “Almost 99 Credit Union Small Data Hacks Guide” click here!

Credit Union 2.0 – A Guide for Helping Credit Unions Compete in the Digital Age covers in depth both big and small data for credit unions. There are six types of data that your Credit Union should be aware of:

  1. Digital Analytics – Desire
  2. Profitability – Fit
  3. Wallet Share – Depth
  4. Transaction – Triggers
  5. Design Data – Predictive
  6. Execution – IFTT (If this than that)

If you have ever changed jobs or been laid off, then you know how much paperwork is involved. This is a prime opportunity to make your members feel the credit union difference. Having plans around the different stages can help make sure

  1. A) Your member is ok
  2. B) Your member pays you first before other creditors
  3. C) You build an experience and have positive interactions that makes someone a member for life

Here is a quick list of what you can learn and what you should do if your member changes their payroll:

What Happened? What could it mean? What should you do?
Member’s payroll goes up or changes source New Job Double check on LinkedIn. If you can confirm it, then send the member an email message and thank them for their loyalty and business.  Perhaps offer them an opportunity to upgrade to your top tier credit card.
Send an email on how to save some of that new money by either setting up an auto transfer or paying a bit extra to their mortgage each month. This is a great time to help your member set-up good financial habits.
Member’s payroll stops They are moving on from your Credit Union You probably have one last chance to save this account. A personal email or note thanking them for their business and a survey could turn a loss into a save.
They have passed away Maybe check the obituaries. If they have passed away, send flowers to the funeral and a sympathy card to the member’s address but addressed to the family members.  Let them know you are there for them in the transition.
The date changes New Job See Above
An offer to change their loan due dates to align with their payroll cycle could be an opportunity to add that personal touch and delight a member.
Offer a skip a pay.
Direct Deposit on a holiday Member might get paid late Jump in early. Post that payroll a day early and send an email in advance letting them know you took care of it for them because you care!
Direct Deposit Reduced >20% Lost job or reduced hours Add the member to the debt consolidation marketing campaign and provide key tips for cutting back.

Watching for payroll changes is a great indication of some key life changes for your member.  Personalizing the response, offering assistance, and educating the member accordingly is a great way to make a connection and make someone a member for life!

Want to learn more about how your fellow Credit Union leaders are using data? We invite you to join our Credit Union 2.0 Strategist Group where over one thousand industry leaders comment on new news and trends while sharing and learning from one another.

This is the third part of a 9 part series. If you can’t wait for next week and want the full “Almost 99 Credit Union Small Data Hacks Guide” click here!

In case you missed it:

Click here for part one of the data analytics series.

Click here for part two of the data analytics series.

 

Credit Union Data Analytics: What can you Learn when your Member Moves?

In our first post in this series, we covered key insights and actions you can take to turn member fees into positive, educational, and empathetic experiences for your member. This week we go even further and dive into what insights your Credit Union can learn from its data on its moving members.

This is the second post of a 9 part series. If you want the full guide “Almost 99 Credit Union Small Data Hacks Guide” click here!

Credit Union 2.0 – A Guide for Helping Credit Unions Compete in the Digital Age covers in depth both big and small data for credit unions. There are six types of data that your Credit Union should be aware of:

  1. Digital Analytics – Desire
  2. Profitability – Fit
  3. Wallet Share – Depth
  4. Transaction – Triggers
  5. Design Data – Predictive
  6. Execution – IFTT (If this than that)

If you have ever moved, than you should know that it is a complete pain. When have you ever asked someone how a move went and gotten the response: awesome – loved every minute of it? Not only do you have to deal with finding a new place, packing piles of items you don’t remember buying, moving and unpacking, but you also then have to do the least fun part – change your address. We’ve all been there. The real question is: what can a credit union learn from this experience and how can you make it a “memory” for your member?

To start – make it a bit easier for your member. For a fee, a credit union can pay the USPS to give it the member’s new address if you know the old address.  WHAT? Yes, it’s true. When you get returned mail, you can pay a small fee, submit the name and old address to USPS and get the new address. Make sure you add this to your T’s & C’s and you could save some valuable time.

Now, onto the insights for a Credit Union:

What Happened? What Could it Mean? What Should you do?
Member fills out a change of address form They no longer live near a convenient location 1. Check their new zip code and send a follow-up email with close branch or ATM locations (could be a shared branch location) and educate the member on your digital channels.

2. Have guides to grocery stores, dry cleaners, and schools for their new zip code and send them a link to it in an email.

They just bought a house and didn’t tell you…bummer Look on Zillow and see if they bought a new house – if so – trigger either your 1st Mortgage switch kit or your home equity offer.
They are upsizing Look on Zillow at their old address and their new address.  What can you learn? Maybe it makes sense to upgrade them to your premium credit card? Are there any other offers that could be a good fit?
They are downsizing Are they also near retirement age? This could be a good time to reach out with education on retirement and other services.
They got a new job Often times, new digs and new gigs go hand in hand. If you look them up on LinkedIn, you can probably tell. If so, trigger your guide to switching your payroll.
Their family size might be changing It could be a time to add them to the marketing campaign on saving for the future or for a month by month guide to starting off their kids on the right financial track.
They could be divorcing This one is creepy and should be avoided – unless your credit union has a dating service…Member Date could be a new thing!
They could be going back to school Might be a good time to educate on student loan options and mid-career changes.
Someone else might have moved Do a quick look in your database to see if you had another account at that address – if so – send the main contact their a change of address questionnaire via email.

Watching for address changes and making it an easy process for your members is a great way to retain members. If you want to get super advanced, you could even setup a change of address service for the top 10 places in your community or send your member some new return address labels. Showing your members that you are paying attention and care is a great way to lower attrition and enhance your brand.

Want to learn more about how your fellow Credit Union leaders are using data? We invite you to join our Credit Union 2.0 Strategist Group where over one thousand industry leaders comment on new news and trends while sharing and learning from one another.

This is the second of a 9 part series. If you can’t wait for next week and want the full “Almost 99 Credit Union Small Data Hacks Guide” click here!

Did you miss the first part of the series? We hope not, but just in case, click here.

Rating the Mobile Banking Apps: How Do Credit Unions Fare? 

By Robert McGarvey 

For Credit Union 2.0  

 

The good news for credit unions in this year’s MagnifyMoney survey of mobile banking apps: Many do very, very well, even against money center bank competition. 

The bad news: Mobile banking apps, suggests MagnifyMoney, “have reached middle age.” That means, per MagnifyMoney, “overall, apps haven’t appreciably improved.” They have entered an era of complacency – and, listen up, that may well not be good enough. 

A point not in the MagnifyMoney survey is this: non banks keep buffing their apps, benchmarking themselves not against financial institutions but best in class apps such as Uber, Airbnb, Amazon, and Venmo.  Before patting yourself on the back with congratulations about the quality of your mobile banking app, ask yourself how you stack up against the really good consumer apps that many people spend hours daily using. 

Back to the MagnifyMoney data and the good news for credit unions: according to its survey, “in general, people still rate credit unions apps higher.  Probably unsurprising, as most CU users report a better experience in general. But traditional banks are catching up. 3 of the ten best overall apps are banks or direct banking apps. Last year all but 1 were CUs.” 

Not all is cheery news in the survey. Chew on this: of the 10 worst mobile banking apps, per MagnifyMoney, four are credit unions. On the dishonor roll are VyStar Credit Union, Patelco, Northwest Federal Credit Union, and Tinker Federal Credit Union. 

That means credit unions as a group can only get so giddy about their performance. Some appear to be in the same league as the worst banks. 

But credit unions do score high in the round up of most improved apps.  Among the top 10 are Teachers Federal Credit Union, CEFCU, America First Credit Union, Schoolsfirst, Alliant, and DFCU.  That’s six of ten. 

Among the top 10 most deteriorated apps are three credit unions: Desert Schools, Suncoast, and SECU of Maryland. 

As for the 10 best overall, credit unions on this honor roll include Eastman Credit Union, ESL, Redstone, SEFCU, Wright Patt, and Delta Community, Visions. 

The others in the top 10 are Discover, BBVA Compass, and Capital One. 

How reliable are these ratings? Probably not very but at least this is a start. The issue is that the MagnifyMoney ratings start by sorting out the 50 biggest banks and 50 biggest credit unions, then looking at user ratings for the apps in the two big apps stores (iOS and Android).  As far as that goes, it makes sense but let me ask: how many apps have you reviewed in the apps stores? 

Not many right. 

I scratch my head in trying to remember the last time I reviewed an app in an app store. And whatever it was it was because the app was just terrible.  Or I was angry for other reasons with the provider. 

So I’m unconvinced that app store ratings are the end-all when it comes to deciding the best and worst mobile banking apps. Nonetheless, my advice is to look hard at the top rated credit union apps – and by all means scroll through the actual user comments in the app stores. 

Do likewise for the worst rated. 

Now ask yourself the really hard question: what are we doing right now to keep our app fresh and relevant for a new generation of credit union members? 

What can we do? 

How can we press our vendors to really upgrade the app to help us better serve our membership? 

What do our members really want that they are not presently getting from the mobile app? Ask them if you don’t already know. 

There’s no rest for the weary. This just came in from Bank of America in an email blast to media about upgrades to its mobile banking app: “Express checking account application — With nearly one-quarter of all accounts opened digitally, Bank of America has introduced a new streamlined process for customers to apply for a checking account securely within the app. The enhanced, single-page design populates customer information into the application, simplifying the process.” 

Can you match that? 

What can you do to get there? 

What can you do to stay ready for the next wave of upgrades? 

The process just doesn’t end and, at many credit unions, there’s resistance to the idea that continuous improvement is a must with mobile apps. 

But give it up. Resistance is futile. With mobile banking, it has become improve or perish.