AI Can Make the Inheritance Process More Humane

Inheritance transfers have been around for as long as people have stored money in banks. But this time they’re different. The Great Wealth Transfer will see $90 trillion in assets passed down to the younger generations over the next decade in the U.S. alone, according to Knight Frank. These are unprecedented numbers. Are credit unions ready?

The truth is, whether they think they are, the current inheritance transfer process isn’t as effective as it could be. It’s plagued with long wait times, stacks of paperwork, inefficient communication channels, numerous visits to branches and lots of frustration from inheritors. This dynamic might’ve worked decades ago when people only kept their assets in one place. But this isn’t the case today, meaning inheritors will have to repeat the same time-consuming process at several financial institutions.

Credit unions are well-known for their human touch, making members feel cared for with exceptional customer service and special deals. However, the outdated inheritance transfer process doesn’t reflect these values, potentially driving members away alongside their deposits and referrals. In fact, according to Ribbon’s internal studies, managing to retain these new members can save credit unions over $500,000 in member acquisition costs.

These inefficiencies are a system-wide issue that AI can help address and make the process easier for heirs – and thus, more humane.
Although saying technology can make any process more humane sounds counterintuitive, the inheritance transfer process could truly improve with it. An update is due, especially one that involves less time doing due diligence and more time connecting with those grieving the loss of close relatives.

The Need to Update a Complex Process

Credit unions are responsible for verifying official documents like death certificates, next of kin, and confirming identities and bank accounts to ensure inheritance money lands in the right hands. As of now, this process is mostly done offline at branches.

While many do enjoy face-to-face interactions for something as serious as inheritance transfers, the process takes more than one visit to fill out forms and review documents – by the time the transfer is through, it will have been months of repeated visits.

Another way credit unions and other financial institutions have begun handling this process is through online case resolution. They prompt inheritors to open a ticket online, for which they receive an email confirmation and hope for the best. Replies from generic emails can take days if not an entire week, and it’s not always the same person assisting the case. This creates a lack of continuity and agility, and even more frustration to what could be a streamlined process.

An Emerging Technology for a Pressing Issue

AI has proven effective on many fronts, such as scanning documents and analyzing their data quickly, summarizing information and managing human-like conversations. When it comes to the inheritance process, these salient features can bring the most change to credit unions.

One of the most critical and time-consuming steps is usually verifying documents. Is the death certificate real? Is this person’s ID valid? Rather than relying on the human eye, AI can scan these documents and minutely verify them in less time than staff would, dramatically shortening wait times – the entire process can be reduced from months to up to two weeks. Inheritors can upload documents online and receive replies in minutes rather than days or weeks.

Moreover, credit unions can automate chatbots with general FAQs so heirs can get their questions answered around the clock without needing to phone branches or stop by. For example, chatbots could outline a step-by-step of the inheritance transfer process, what kind of documents inheritors will need to provide, and the expected turnaround time for credit union staff to reach back.

Other additional automations could include sending automatic responses once documents are verified and the next steps are due so both staff and inheritors don’t have to wait until the next day to message or phone with updates.

These little changes remove all the fog from traditional inheritance transfers and reduce time and effort to a minimum. Instead of spending countless hours at branches or on the phone with banks, heirs can focus on processing their loss.

More Time for the Things That Matter

Using AI for the inheritance process also means credit union staff won’t spend as much time drafting documents and reviewing paperwork, freeing up time for more relevant tasks. But this shouldn’t translate into a hands-off approach. Rather, they can make the most of their phone calls, emails or branch visits with inheritors, whether that’s offering relevant membership offers post-transfer, sending flowers or other heartfelt gifts on behalf of the institution, or simply listening to them.

Inheritance transfers take place during some of the most difficult times for those undertaking this process, and prioritizing human connection over transactional matters can go a long way in how inheritors perceive the credit unions that hosted their loved ones for a long time.
Likewise, it gives them more time to deal with the many other tasks that come with losing a close relative: Organizing a funeral, spending time with their family, taking care of other errands regarding the deceased and so on.

The Power of Choice

When people think about adopting AI, they might assume every step of a process will be digitized. Such an approach would exclude inheritors who aren’t tech-savvy or don’t have electronic devices. But one of the most important aspects of integrating AI into these processes is giving heirs the choice to handle them however they desire.

Some might prefer to do everything in person as they have the time and patience to do it. Others might want to do it fully online – after all, most heirs are expected to be Gen X and millennials who work. On the other hand, some might want to take a hybrid approach where they initially touch base with staff in person and continue the process online.

The power of choice granted by technological advancements will give credit unions a competitive edge over other financial institutions that still manage the inheritance transfer process the traditional way – it also helps maintain the human touch credit unions are lauded for. Counting on these options is also a sign of an empathetic institution that recognizes and meets the needs of its client base. As the Great Wealth Transfer takes place, AI adoption is set to significantly improve transfer turnaround times, reduce time-consuming tasks for staff and increase inheritor satisfaction through a more humane process.