In my last blog, I talked about cleaning up data. Ugh. It is hard work, and I was primarily focusing on core system data. Today I want to suggest thinking about new ways Credit Unions can use existing data.

Most Credit Unions have a heartfelt mission of supporting member’s financial well-being. Yet in some ways – we simply do not engage members enough. What! Hear me out – I’ve got an idea…

Credit Unions can use their data in creative ways to be more relevant to our member’s lives. Let’s take the example of a car loan. We spend a lot of effort and money on “selling” the loan. We offer great rates, we make the buying process convenient, and we spend hundreds of thousands of dollars on systems that will make the loan application process easy with features like automatically creating their membership or integrating with online banking. OK, we got them, they purchased the car and we closed the loan. We did it!

That member now has a 60-month loan and, if they pay on time, we’ll send them their pink slip in 5 years. For many Credit Unions, this scenario is the extent of the relationship between the credit union and the member’s car loan.

It’s all about the data.

What if we used the data we have about car loans to make relevant offers at relevant intervals for something that a member wants? (I know, you may be saying you already make offers at regular intervals, but staying relevant means offering something the member wants.) In the case of a car loan, how about offering a credit card at 18 months (when cars typically need new tires) and double or triple the points off on tires? For an even sweeter deal for the member, work with a box store or a local tire shop to provide even deeper discounts.

The Credit Union gains a more engaged member and credit card revenue. The member gains a deal on a credit card and a discount on something they know they need to purchase soon anyway. The local tire shop gains more awareness and local business.

WIN-WIN-WIN

Now, if you are an even more entrepreneurial community Credit Union, you can offer business customers faceless data. In the auto loan example, if the tire store could see how many tires your members purchased over the last year, they could use that data to improve their marketing efforts and the timing of their advertising and discount offers. They would not be able to see individual transactions, only the aggregate information on purchases.

Now you have an engaged business member that is only able to get that information from your Credit Union.

WIN-WIN-WIN-WIN

The digital journey requires us to find creative and innovative ways to use data to help our members while becoming more engaged in their lives, not just their financial lives. Becoming more innovative with information is a transition that Credit Unions must embark on to continue to be relevant!

Read more about Credit Union Data and Data Analytics:

Getting Your Data In Order – A Recipe for Digital Success

Credit Union Data Analytics: Put the Community in your Fees!

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.

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.

 

Recently, I overdrafted my account at a Credit Union. Doh! The funny thing was that I had plenty of money in my savings account, and it was an honest mistake. The core of the issue is that I was a new member and no one at the Credit Union had ever offered to setup overdraft protection. I assumed the Credit Union would just default to setting it up. I hadn’t had an overdraft fee on an account in years!

The funniest part of the story is how I found out that I had overdrafted. I found out because I received several delinquent notices on a bill. I had bill pay setup, and the Credit Union just didn’t pay my bill…because I didn’t have the money in my checking account. So, once I saw the delinquent notice, I had to take the time to dig in and figure out what had happened. At the end of the day, the Credit Union ate the $90 dollar late charge and made me whole (they probably didn’t have to) but it was like a guilty admission in the process that somehow made me feel vindicated in my complaining. This experience got me thinking about how often this sort of thing happens and what our industry can do about it. So, I came up with a super simple hack that almost all Credit Unions can implement right away. 

Here it is: Once a month, run a report on all members who have over $2,000 in their savings accounts and don’t have overdraft protection setup. Then, set it up for the member. That’s it. This is a super simple solution that will avoid a potentially bad experience for a member right out of the gate.

Now, here is the plus size, scream your Credit Union’s awesomeness from the hills. When you set up overdraft protection for your new member, tell the member. Here is how: 

“Dear Member–

We just wanted to take a minute and say thanks. We love our loyal members, and we hope that you feel the same! We like to make sure that your account (and you) are always looking good, so we put on some visors and looked at our data. In our analysis, it looks like you would be a terrific candidate for overdraft protection. This feature allows you coverage so that if you accidentally forget how much money you have in your checking account, we have your back and don’t 

A) accidentally bounce your check(s)

B) charge you a fee.

If for any reason you don’t want that setup and don’t like looking awesome, please click here to let us know.” 

Ta Da – you have now up-sized the experience, improved your digital prowess, built trust with the member, and put your member first. Good job – pat yourself on the back!

Want to up-size that even more? Here are several additional ideas: 

I spoke with one Credit Union that had created an awesome overdraft policy: The credit union will only ever charge you for 2 overdraft fees in one 24 hour period.

This policy makes a lot of sense when you think about it. Whenever a member was charged a bunch of fees for a bunch of transactions in a short amount of time, the Credit Union almost always ended up refunding majority of these. However, by limiting the policy to 2 overdraft fees in one 24 hour period, the member still has to take responsibility for their actions, but the Member Service Representatives can plausibly keep two fees in places while feeling good about waiving the balance.

Another awesome Credit Union instated the following policy: On the members’ first overdraft, the Credit Union automatically refunds the fee and sends a link to a video that educates the member on how to avoid overdraft fees in the future.

The video explains the difference between Available Balance and Actual Balance, budgeting, and offers some other ideas to avoid overdrafting. All around, the Credit Union automated the experience, saved themselves a phone call to the member (potentially multiple), and wowed the member by putting them first proactively instead of reactively. 

These are just a few thoughts on how to help your Credit Union deliver a Credit Union 2.0 Digital Experience that builds trust and wows the member without any fancy systems or tools.

If any questions jump out at you as you read through, or if you simply want to know more, contact us at info@cu-2.com and a member of our team will get back to you shortly. We love to talk about digital solutions!

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.

By Amy McCaughey

Go on almost any financial institution’s website, and you are likely to encounter some sort of chatbot. As artificial intelligence (AI) becomes more and more ingrained in our lives, it is a good time to take a step back and ask ourselves, is AI really useful?

A chatbot is a form of AI that talks with people, provides information, and performs tasks based off of that information. The best example of AI that many people use every day is Apple’s Siri or Amazon’s Alexa. While sometimes Alexa can be a real help, most users have also found the opposite.

You: “Alexa, play Cake by the Ocean”

Alexa: “Adding cake to your shopping list”

However, the key to AI is that as you use it more, it gets better. The more you use Alexa and Siri, the better they get at many of the tasks you ask of them.

Chatbots are similar and are AI assistants for website users. The main difference between a chatbot at Alexa, is that you are in control of how a chatbot is being utilized on your website and ensure that your member experience does not suffer. A terrific strategy for chatbots is to limit the number of tasks it is capable of to just those where a chatbot can do an even better job helping your members than a human could.

Chatbots do several things really well:

• Help you find information
• Answer simple questions
• Startup conversations based on your specified interests
• Talk with you & recall pages on the sites you have visited
• Make suggestions
• Be there for members 24/7

These characteristics make chatbots terrific options for guiding a member throw a process on your website, answering frequently asked questions, or recommending a product/service for a member ask he/she answers a series of questions.

While AI is a constantly expanding field, and there are many new and exciting ways for your Credit Union to utilize AI, chatbots are a terrific place to start. Building or purchasing a chatbot for your Credit Union’s website can help improve members’ digital experiences and close a potential customer service gap.