CUs Creating a Digital Experience Foundation

Omnichannel may no longer be a trendy fintech term, but open digital platforms have gained spotlight for credit unions looking to more easily advance member experiences and integrate additional capabilities.

Some credit unions are enhancing digital proficiencies by using Architect from the Brookfield, Wis.-based Fiserv as a foundation for a variety of online, mobile and payments services while also allowing the deliverance of a seamless digital member experience.

Brian Melter, SVP, digital channels for Fiserv, pointed out credit unions are looking to provide one seamless experience, whether members enter via mobile, desktops or tablets. “The key thing we’ve found is having a common back end to power those sites and apps is crucial.” Another important element, he added, is the ability to execute targeted member campaigns.

“All of our credit unions are looking for one tool that allows them to run retail, online banking and business across mobile, tablets and desktop with a single console. And that is what Architect provides,” Brandon McGee, vice president, product management, digital channels for Fiserv, concurred.

“It really can be integrated in with things outside of the Fiserv ecosystem. And it goes a little bit further too,” Melter said, adding some clients use the platform, which comes hosted in the cloud or as an on-premise solution, to integrate with wealth management and insurance products for a single view of all accounts. “It goes beyond banking and credit unions in terms of the flexibility and openness.”

Melter suggested the beauty of the Architect platform is that the open framework allows for integration of popular capabilities like alerts, electronic bill payments and person-to-person payments, services such as the Zelle digital payments network and next generation technology. Architect also enables small enterprises to manage their business, check account balances, manage payroll, and send ACH and wire payments.

Another key value proposition is the SDK, McGee emphasized. “Through the software development kit, any new integration, or any new feature and functionality they want to bring to market is possible.” McGee pointed out Fiserv offers dozens of single sign-on solutions and application programming interfaces through the Architect App Store. “Any client with an SDK can build an app and have it published.” Or, other credit union developers can load custom code or integrations into the app store for the entire credit union community. “It really is about community and openness, and kind of lifting the bar on the entire platform.”

Fiserv recently announced the $1.18 billio, Tucson, Ariz.-based Hughes Federal Credit Union will enhance its digital capabilities with Architect as a foundation for a range of online, mobile and payments services.

A long-time user of Architect’s online banking capabilities is the $5.3 billion, Apple Valley, Minn.-based Wings Financial Credit Union, founded in 1938 and chartered by seven Northwest Airlines employees. Wings Financial has grown to some 270,000 members at 29 branches in the Minneapolis-St. Paul metro area, and out of state in locations like Detroit, Mich., Seattle, Wash., and Orlando, Fla., primarily around former Northwest Airline hubs.

David Mason, SVP, digital channels and chief information officer for Wings Financial, explained that in 2011 the credit union developed a five-year strategy to revolutionize member interaction. “We realized the platform we were on was not going to allow us to compete successfully.”

Mason noted in the Twin Cities area, Wells Fargo and U.S. Bank probably own 70% of the market. “We began looking for a platform that would allow us to really drive and control our own destiny with the digital channel, and we were attracted to the Architect platform.”

Innovating the member experience, supporting revenue opportunities and driving efficiencies are the primary ways Wings Financial leveraged Architect, which it began running in July 2013.

Mason pointed out Architect provided the framework needed to push out custom development and aligned closely with where the credit union wanted to go from a digital channel perspective. He also emphasized the credit union is big on efficiency because it is one of the primary ways it returns value to members.

A specific example of how Wings Financial strategically leveraged Architect came during its skip-a-pay program, which allows members who want a little extra holiday cash to skip a loan payment. Generally, the credit union processes about 8,000 skips, but it was a very manual process – members had to download a website form and mail it in, and employees had to work overtime to process those forms. “About three years ago we leveraged our app dev team to create a fully automated solution via digital channels where a member just submits a request and it’s automatically approved.” Mason said Wings Financial processed about 8,000 skips last year, 96% of them completely automated. “[There was] zero cost as far as overtime was concerned. We also generated about a quarter of a million dollars of noninterest income from that program as well.”

One of the real focus areas for the first three or four years Wings Financial used Architect was creating a direct integration into its loan origination platform. “We’ve seen some really good adoption and response from members,” Mason said. He noted it saw over $700 million in loan applications submitted via the digital channel. Last year, it rolled out a fully automated credit card decisioning program to highly qualified members. Mason explained the credit union has seen $750,000 of noninterest income driven through the digital channel experience since moving to Architect.

Wings Financial integrates Architect with a FIS Miser core. Architect supports all the Fiserv cores in addition to non-Fiserv cores. McGee said almost half of Architect’s core connections are for non-Fiserv core connections.

Architect also supports various connectors, which Wings Financial uses to integrate with its custom API/middleware server and a number of vendors for personal financial management, processing and e-documents, as well as the Fiserv bill pay product. “It’s kind of the glue that holds a lot of this stuff together,” Mason maintained.

Wings Financial, Mason pointed out, has been in the online game since 1999 when it rolled out its first home banking platform. He noted online was a secondary member channel prior to the credit union’s Architect migration. In the last five years, however, digital transformed into a primary member channel.

Mason emphasized, “I am not a fan of the omnichannel buzzword. We’re really not interested in creating the same experience for every channel.” He noted its focus is on learning why members use a particular channel and creating a compelling experience for those use cases. “There’s some synergy with integrating the channels, but trying to make every channel look like every other channel really is not something that we’re trying to do.”

Mason said when members do home banking, 90% of the time they want to see their balances, transfer funds and maybe pay a bill. “So, you optimize the experience to support that.” With mobile, “They are looking to get in and get out fast. That’s how we want to optimize that channel.”

Wings Financial’s current big push is to create a branch at members’ fingertips – such as at the kitchen table or in their pocket. “Then [we want to] really position our branches for sales consultation and to serve as a sales center – to drive self-service functionality in a really compelling experience,” Mason said.

The credit union is moving aggressively on a number of digital initiatives. One of its big projects this year, which is currently in alpha testing, is reshaping member involvement. “[It’s] a completely new look and feel; we’re still using Architect, but it is going to have a completely redesigned experience.” Wings Financial said a team consisting of a Twin Cities design company and its app development team have spent the last eight months creating a dashboard experience allowing members to tailor what they want to see. “The focus of the design goal is to drive additional customization for members and to increase engagement. We want them to find it to be a compelling experience they want to come back to.”

Finding that online member sweet spot is a moving target. Mason elaborated, “Part of the challenge all credit unions face is we do not control member perception of the digital channel experience; that is being controlled by the Apples, Googles and Chases. It’s important that credit unions focus on their digital channel presence and really try to drive innovation through those channels to be competitive.”