Yet some auto lenders do not make it easy for people to make payments how and when they want. In many cases, consumers who take out a loan are still being issued with the traditional coupon book – even though they have signed up for digital payment options when they are originating the loan. According to the Billing Household Survey, 21 million households change payment methods from month-to-month – mailing a check one month then making a mobile payment the following month, for example. That's up 40% from the previous study. Borrowers may prefer one-time or recurring payments, so auto lenders need to support both. Offering greater choice when it comes to bill payment not only improves member satisfaction and fosters a closer relationship between them and their credit union. In addition, it can be an important cost-saver.

When coupon books are being issued to members there is a delay while a check is written and the coupon is mailed in, compared to the faster revenue collection method of making digital payment options. Presenting these communications digitally not only keeps costs down but reaches the member more quickly and, because it is in the form they typically choose to communicate anyway, is more likely to be read.

Today’s Member Is Mobile

According to the Fourth Annual Biller Mobile Bill Pay Benchmark Study from Fiserv, 24% of visits to biller websites are from mobile devices. What are people doing when they get there? They're paying bills. Paying a bill is the top activity for mobile visits to billers' websites, and 33% of U.S. online households are paying at least one bill through a mobile device each month, according to the same study. To meet the needs of borrowers, make it easy and intuitive for borrowers to access, set up and make their auto loan payments on a mobile device.

Once members have been driven to your credit union’s website, not only can they set up bill payments, but they can also see other products and capabilities they might never otherwise have known about. Beyond cross-selling, it is an opportunity to improve the way you are servicing your members as they now have the ability to communicate with you real-time via digital touchpoints, such as webchat. In essence, far from weakening member relationships because they are not coming into your branches, when it is done right, it enhances the bond between credit union and member.

Digitizing the credit union experience is not only good for members but also for the financial institution, not only in terms of facilitating faster payments, but because it helps to reduce regulatory risk as everything is happening automatically and a consistent method of transferring data throughout that customer experience is being delivered. An experienced lending technology provider can facilitate this adaptation, implementing the right tools to meet consumer expectations for a smoother, more digital process.

The Experience Is Everything

For the first time, the convenience factor is exceeding rate in importance to the consumer – the chances are they will be willing to pay a slightly higher interest rate if they have the ability to work with a lender who is going to give them a more convenient experience across the board. That convenience factor has become so critical based on other experiences consumers have in their everyday lives.

Knowing and understanding member behavior, what it means for the credit union and how to increase the convenience factor to improve their customer experience is key to continuing to deliver value, as well as creating a more efficient operation in the process.

Monica Orluk is director, lending solutions for Fiserv. She can be reached at [email protected] or on Twitter at @OrlukM.

Gary Brand is director, payment strategies for Fiserv. He can be reached at [email protected].