By Terence Roche
The fast pace of members migrating from traditional channels, such as branches and call centers, to new channels, including online banking and mobile, is unprecedented:
- On average, 60-70% of members with checking accounts now access their accounts online
- One-third of loan applications are received through the web
- 10% of members are now using remote check deposit through their smart phone or tablet
- Some credit unions have already seen 5–10% of deposit applications started on the web
Your members’ behaviors and preferred ways of interacting with your credit union are changing rapidly thanks to new technology, and you need to be ready to serve them through these outlets just as well as you have at your branches. Do you have a plan?
First, I’d suggest you determine how to manage these new channels as they relate to your overall credit union strategy and your commitment to member service. Decide how you will influence member movement to new channels. Identify the ways you can integrate all of your delivery channels. Specifically, how will your members interact with your credit union across channels? A good example is the loan application process. Your member may submit a loan application online, but visit your branch to sign the final loan papers.
Then, define your goals for each channel. How will you know if a channel is performing successfully? There are three dimensions to consider that can help you determine the effectiveness of a channel:
- Member value—How much do your members value the channel?
- Efficiency value—How cost effective is the channel?
- Sales value—How is the channel contributing to production and your credit union’s growth?
Finally, focus on integrating and improving the member experience across and between all channels. Credit unions excel at differentiating their business from other financial institutions by providing their members with a pleasant experience in branches and contact centers. However, doing the same in new channels such as mobile and online banking requires new thinking.
Your members’ definition of a “good experience” changes dramatically in these new channels. For example, members expect immediate access to your web and mobile sites, fast uploading times when accessing their financial information, and tools that are easy to understand and use. Experience can also be influenced by factors that are not explicit to your members. For instance, using a standard typeface and color for the text on your website and mobile app and ensuring consistent naming conventions across all channels can make interacting with your credit union that much more efficient, effective, and overall pleasant for your members.
Technology has leveled the playing field in the financial services industry. Consumers’ desire for new ways to manage their money is a major opportunity for the credit union movement. By proactively building a strategy, performance metrics, and a holistic experience across all of your delivery channels, your credit union will better serve and retain your current members and have a head start in recruiting new, younger members who are seeking a forward-thinking financial institution.
Terence Roche is Principal of Cornerstone Advisors, Inc., Scottsdale, Ariz. Learn more about Cornerstone's delivery channel planning solutions now.
