Mahalo Delivers an Omni-Experience for CUs

The Chelsea, Mich.-based Mahalo Technologies had a vision of creating secure omnichannel experiences for credit union members. Its solution: Launch a digital banking platform that enables the use of all digital banking features, while applying deep API integrations to the core and third-party systems.

Mahalo’s architecture, designed with input from experts within the credit union industry, offers a modular and scalable system, which the company said allows for enhanced deployment and the capacity to stay current with tech advances.

An emphasis on technology and assembling a standout team have been key objectives since co-founders Denny Howell and Dan Domek, two longtime credit union technologists, formed the company. Unprecedented security components and advanced data analytics are among the many features that Mahalo expects to pioneer.

“We firmly believe that it’s important to have the right people doing the right jobs,” Howell, SVP of experience for Mahalo, said. “Dan and I are tech guys and we like it that way.” In addition to bringing in Alan Augustine, another longtime credit union tech expert, to become president/CEO, Mahalo also onboarded cybersecurity expert Jim Stickley, founder of Stickley on Security, and credit union tech consultant Ron Murray, founder of CUTEK (known for its third-party integration into core data processing systems), as investors and active advisors.

Howell emphasized Mahalo is a service organization that delivers robust mobile and online banking with exceptional security and technology features. “We’re credit union people helping credit unions – we’re not technologists trying to put technology in place.”

Augustine added, “We’re committed to creating a real omni-experience where consumers can quickly access all functionality regardless of platform.”

Asked to describe the difference between the omnipresent term omnichannel and what they call omni-experience, the Mahalo team said typically, omnichannel delivery consists of standard core and third-party integrations with access to mobile and online banking services. Its digital banking platform’s omni-experience goes beyond omnichannel delivery by integrating more deeply through its representational-state-transfer application program interface with the core and third parties, they said.

Howell noted, “In our design and development phase, we’re taking the experience across all platforms and writing to native application parameters.” By doing this, the Mahalo team believes it can deliver a consistent, intuitive and seamless user experience throughout all delivery touchpoints, and eliminate instances of mobile and/or web design practices being forced into the development.

Howell, SVP of development, described Mahalo’s method as such: “Our scrum/agile development and delivery process ensures enhanced collaboration and communication with our clients, allowing them to have increased visibility over all aspects of the project. That visibility leads to better quality, decreased time for rollouts, a sense of ownership and better overall client satisfaction.” Besides automated unit testing, credit unions receive updates and product iterations to test every sprint to ensure that at the end of the process there are no surprises or reworks.

Mahalo uses the same process when rolling out new features and product updates that it claims eliminates confusion to organizations and members. “Credit union employees can manage all of Mahalo’s robust admin functionality through their core, eliminating the need to have multiple programs open and switching back and forth to verify information,” Howell added.

By designing and creating native applications, Mahalo aims to provide a recognizable look and feel, which it said is intuitive for member use and therefore reduces the number of support calls to credit union staff. Native apps also benefit from the proactive security and performance upgrades made to the platform itself.

In addition, Mahalo asserted building scalable products makes integration quicker and provides the opportunity to dive deeper into the integration, whether it’s to the core or a third party, in order to offer advanced features that other providers aren’t offering, helping the credit union grow and retain its membership.

“The Mahalo Banking system uses discreet software components that can be bolted onto the base software product to provide additional functionality,” Domek said. “Using a component-based software architecture allows simpler vendor integrations, optimized for performance, reliability and flexibility.” He added scalable systems require efficient coding, performance measuring and load testing. “Employing smart algorithms that fetch information efficiently through core system interfaces enables fast access to member data. Quick data access is key to a positive app and web experience for the members.”

Howell explained Mahalo loosely coupled REST/JavaScript Object Notation in its API. In a loosely-attached design, components and features are independent, and changes to one will not affect the operation of the others. This approach offers optimal flexibility and reusability when adding, replacing or modifying components and/or features. “Conversely, a tightly coupled design means that components and/or features tend to be interdependent. Changes in just one component and/or feature can have a system-wide impact, with unanticipated and undesirable effects for credit union membership and support staff.”

Howell pointed out, “When developing mobile or web applications, there are usually two teams: A backend team that builds the REST API and a front-end/UI team that builds the member-facing application.” When that happens on tightly-coupled APIs, the necessary interaction between the front-end and back-end teams can be lengthy, potentially delaying new application rollouts and updates.

“It really ties in deep integration to the core and other third parties through API, and really controls the experience at that point. I’m not trying not to send them off to an asset, where the experience is totally different. We really control the entire member experience digitally,” Howell explained.

Howell noted Stickley and Murray aren’t your typical investors: “Both of those people have a long history within the credit union industry.”

Stickley, Mahalo’s chairman, explained, “I have been testing the security of online banking solutions for over 20 years. I have found that while the solutions are continuing to advance in functionality, the underlying security appears to be more of an afterthought. This has led to not only vulnerabilities in the designs and development of many of these solutions, but also has been a contributor to credit union losses through member victimization.”

Stickley maintained his investment and involvement in Mahalo is not about making yet another online banking solution. “My goal is to help design a secured solution from the ground up that will actually reduce fraud and protect members from would-be cyber criminals.” Mahalo offers protection against man-in-the-middle and man-in-browser attacks, as well as file integrity and anomaly monitoring.

Meanwhile, Murray brings extensive knowledge in programming, core systems and integrations. “Time and again I have worked with credit unions that are trying to implement a new online banking solution, only to find no real integration process,” Murray said. “Being able to help design Mahalo with strong embedded ties directly to the core will save credit unions countless hours, not to mention considerable frustration.”

Mahalo offers both an in-house and cloud-based solution using Microsoft Azure. The Mahalo platform does not replace the core accounting system. “The core has to be the hub of our wheel,” Howell said. Among the other features the platform can provide are secure registration, customization, ADA compliance, data insights, age appropriate apps for the entire family, secure transactions, admin portal configuration to ease rollouts or vendor changes, and an offline mode to serve members when the core system is down.

From the onset, Mahalo sought credit union feedback. “We’re constantly taking in member and credit union perspectives,” Howell said. “We saw the frustration of some of the service aspects with our competitors.”

Listening only magnified the concerns, he added. “We went into one credit union early on and they hadn’t had an update on their mobile channel in two years.” They also learned of some of the security loopholes and integration atrocities. “There’s a need for a disruptor out there. Somebody that competes,” Augustine said. “We come in with a little bit different mentality. Just like credit unions are the trusted financial advisor, we want to build that trusted advisor role for credit unions.”

Augustine maintained by being modular and scalable, Mahalo can stay current with technology and not become a legacy system down the road, the latter of which some of its competitors are running into when it comes to keeping code updated and current. Since its May introduction, Mahalo signed two credit union clients and anticipates more on the way.

“We’ve really struck on a simple formula,” Augustine concluded. “By combining the best technology with the best people, we’ll be able to have the greatest possible impact on credit unions of all sizes.”