5 Tips for Great Onboarding for Credit Unions

New credit union members have high expectations for a smooth, efficient and personalized level of service – and that includes their onboarding process. And while many credit unions have digital banking apparatus already in place, this often doesn’t extend beyond day-to-day activities – even as a majority of consumers have stated they opened a financial account online in the past six months. Here, I’ll offer a few best practices for building a digital-first onboarding experience that matches the reputation that credit unions pride themselves on.

Credit Unions: Moving the Needle From Good to Great Onboarding

Here’s the good news: a recent Lightico survey found that American credit union members are more satisfied with their onboarding experience compared to customers of other financial institutions – including those of leading national banks. The results showed that just 21% of members struggled to open a new account online.

But they still have room for improvement if they want to compete effectively with digital-only banks (neobanks), as well as a couple of digital leaders such as JP Morgan Chase and Citibank, as well as local banks as a category.

There’s plenty of incentive for credit unions to improve their digital onboarding flow. More streamlined and faster onboarding means a lower likelihood of prospective members abandoning the process. It reduces the strain on the credit union’s resources. And it sets the right tone for the rest of their banking experience, enhancing the credit union’s reputation for putting members first.

So how can credit unions go from providing a decent to extraordinary onboarding experience? Here are a few tips for how credit unions can maximize their ROI from a better onboarding workflow.

1. Embrace Technology

New technology isn’t antithetical to credit unions’ mission of providing a tailor-made experience. Quite the opposite. Credit unions should embrace onboarding software to eliminate any friction in the account opening process. Loan origination systems (LOS) can certainly be employed to do double duty. But onboarding is arguably worthy of its own platform that can make members’ initial experience with the credit union unforgettable, from the initial application to eSignature collection.

2. Add Conditional Logic to Smart Forms

All credit unions have different criteria for accepting new members, whether it’s based on geography or membership in a particular organization. The initial customer form is the best place to understand whether the potential member is within the credit union’s field of membership. Based on their response, automation can trigger next steps and provide automated next steps.

For example, the following business rule can be applied to electronic forms (eForms) to quickly determine eligibility:

• If the customer is a volunteer at the American Red Cross, then additional form fields appear.
• If the customer is not a volunteer at the American Red Cross, then a field appears asking if they would like to join. If they answer affirmatively, then a trigger for joining the American Red Cross appears.

While nonmembers can sometimes decide to volunteer, become a member at an organization or join a church, some criteria cannot be easily met.

For example, potential members are unlikely to change their place of residence or company to join a credit union. Therefore, credit unions can also use conditional logic in their eForms to exclude eligibility. For instance:

• If the customer is a resident of Birmingham, Ala., then additional form fields appear.
• If the customer is not a resident of Birmingham, Ala., then fields stay hidden and the nonmember is informed that they aren’t eligible.

By using conditional logic, credit unions can determine eligibility early on in the application process.

3. Use Automated Workflows for Document Collection

Regulatory requirements mean that credit unions must conduct due diligence when onboarding new members. This often means adding document requirements last minute during the account opening process. Digital workflows can be quickly set up to prompt credit union staff to ask for relevant supporting documents based on the potential member’s risk profile and other characteristics. Automated document requests allow credit union employees and customers to save precious time, as requirements are known from up front.

4. Automatically Verify Member ID

Digital onboarding requires verifying ID from any location. Members should be able to instantly submit their official photo ID for automatic verification from their mobile phones – whether they’re opening an account at a branch or remotely.

A credit union employee can send the prospective member a text message containing a link that opens to a secure virtual session. The member opens that link, snaps both a selfie and a picture of their photo ID using their smartphone, and uploads it to the mobile session. An AI-powered photo ID algorithm scans the two images and determines whether there is a match.

An automated ID verification system makes it easy for credit unions to prevent fraud without disrupting the member onboarding experience.

When used with back-end checks with programs such as ChexSystems, credit unions can quickly build a risk profile of a potential member.

5. But Always Stay Human

Embracing automation shouldn’t come at the expense of maintaining the human touch. And usually it doesn’t. There is no contradiction between capabilities like AI, machine learning, conditional logic formulas and a caring member experience. But credit unions do need to make sure that employees are always available to guide new members through the digital onboarding process via phone, helping them through their application and answering questions along the way. The best onboarding software will allow associates and members to co-view and collaborate on applications in real-time.

Once the account is open, credit union staff can offer discounts at stores, access to travel agents, special rates and other white-glove services that make members feel cared for. And with the bureaucratic aspects of onboarding automated, employees will have more time for these “extras” that make all the difference.

The Bottom Line

By harnessing digital capabilities, automated workflows, and a helpful and empathetic team, credit unions can ensure a delightful and effortless account opening experience. Members will remember the enjoyable and glitch-free onboarding process, setting the right tone for the rest of their account’s lifecycle. No matter what service members eventually require, that initial experience will ensure a positive perception and eagerness to rely on the credit union.

Zviki Ben Ishay is the CEO of Lightico, a provider of a digital customer interaction platform based in New York City.