How CUs Can Change the Game for Member Expectations

Credit union members expect to be “known” by their financial institution through whichever channel they transact through. Members want a consistent experience— self-service or physical service with convenience, 24/7 availability, frictionless service and fulfillment, protection from fraud, financial advisory assistance, and knowledgeable branch and contact center staff.

Members expect to sign in to existing online accounts and have the system automatically populate applications, call the contact center and pick up the conversation where they left off, or start an application on their phone and finish it in the branch. They don’t want to say or re-enter the same data over and over, restart from the beginning because they are directed to another channel or engage multiple systems to complete a single transaction.

Credit unions can accommodate their members’ expectation of immediate service by leveraging an omnichannel environment. Research shows that 35% of business executives claim that digital transformation helps them to better meet customer expectations.

An omnichannel environment enables organizations to easily communicate cross-channel, enabling members to interface with the credit union regardless of where the request originates. omnichannel communications may efficiently resolve member interaction problems and reduce the time needed for transaction such as the loan origination process.

One Example – Simplifying the Loan Process

Eighty-six percent of credit unions agree that in order to remain competitive, strategy must be centered around digital capabilities – but only 14% agree that they have those capabilities in place. Members expect the same immediacy when applying for a loan as they do when they online shop. Timely processes can now be completed with speed and efficiency thanks to origination efficiency and automated decisioning.

Automation brings about positive returns for credit unions by eliminating inconvenient friction in loan origination by removing paper-based processes. Paperless processing cuts down on misrepresentation of financial standing by members and reduces the cost of reproducing and resending documents due to errors. Automating manual steps like document generation, document management and storage, and electronic signing results in fewer expenses for supplies, storage and transportation. Credit unions can also eliminate geographic constraints, reduce errors, improve regulatory compliance and reduce the likelihood of lawsuits. With automated processes in place, credit unions have the tools needed to speed up processing, expand revenue by enabling frontline employees to focus more time on sales activities, and improve the member experience by allowing members to sign documents from any location at any time.

Reducing Risk & Increasing Efficiency in Digital Channels

Determining borrower credit-worthiness in digital delivery channels is generally higher risk when compared to in-person lending. Increased volume combined with the increased risk can rapidly overwhelm a credit union’s staff when using traditional in-person underwriting models, making digital lending not feasible. However, processing digital loan applications through automated decisioning before engaging human capital for intervention minimizes labor and vendor costs, mitigates credit risk, strengthens member engagement and ensures regulatory compliance.

Automated decisioning drives down denial and underwriting costs resulting in an increased focus on more profitable, qualified candidates. This digital omnichannel transformation strategy increases employee productivity by providing consolidated member information and loan details for a 360-degree view of the overall financial relationship and deal structure.

Credit unions can feel more confident in the service they are providing members, as well as the decisioning process, as a result of leveraging human and digital channels when servicing members to eliminate margins of risk and inefficiency in real-time.

Benefits of an Omnichannel Lending Approach

Providing the consistent experience members expect requires continuity and transparent communication across all systems, apps and channels. With the solutions available today to automate and streamline processes, credit unions can achieve an omni-member experience while gaining a more detailed, accurate picture of member needs, preferences and behaviors to engage with relevant and timely actions and communication.

Providing a digital omnichannel experience is important to all members, despite age. A study found that 99% of Gen Z and 98% of millennials use a mobile banking app for a wide range of tasks, including viewing account balances, checking their credit score and depositing a check, in comparison to Gen X and boomers, who prefer traditional face-to-face transactions. Having the right channel to meet member expectations and provide an exceptional member experience will place credit unions at the top of the pack.

Credit unions leveraging digital capabilities to create an omnichannel environment are better meeting member demands and expectations while reducing cumbersome processes and operational costs. The organizations that are committed to a digital transformation will be better equipped to meet the evolving demands and market changes.

Todd Robertson is SVP of Business Development for ARGO, a Richardson, Texas-based technology and fraud solutions company serving the financial services and health care industries.