By Nathan Rogers
Whether auto or home loans, credit unions that have 24/7 call center capabilities will have an advantage in the increasingly robust lending marketplace. Assisting members anytime, anywhere, with a friendly voice from a real human being who has specific topic knowledge helps capture borrower trust–as well as loans.
CUES member Ken Brehm, VP/consumer lending for $1.7 billion Georgia’s Own Credit Union, Atlanta, says that half of its loan activity is generated by the combination of its in-house call center and its association with CO-OP Member Center, Fort Worth, Texas. The CO-OP Member Center handles the off hours and gives the CU 24/7 call center coverage. “Capturing those off-hour loans is critical to growing our loan portfolio,” Brehm explains.
Market research shows that after-hours is the prime shopping time for credit union members, especially when buying a car. Consumers might want a loan at 7 p.m. on a weeknight, which is not a time most credit unions are open. But with a call center representative available then, a CU has a better chance to close that loan. Without a call center, it could lose the loan, any associated insurance and affiliated fees and—importantly—the opportunity to gain a new member or deepen the relationship with a current one.
The possibility of losing a loan because a lender is closed for business is very real, according to Tony Boutelle, president/CEO of CUES Supplier member CU Direct Corp., Ontario, Calif. He cites a recent series of focus groups by researcher Neil Goldman consisting of both credit union members and non-members brought together to discuss their auto loan preferences. When focus groups participants were ready to purchase a car and their primary lender (e.g., credit union) wasn’t open, 12 percent of those purchasing new cars did not hesitate to use another lender, as did 25 percent of those purchasing a used car.
While research shows credit unions have a close relationship with their members, in some cases, timeliness trumps loyalty. “This is a very good reason for a credit union to have a call center that operates 24/7,” says Boutelle.
In today’s hurry-up, I-can’t-wait world, credit union members have become increasingly oriented to doing things at any hour they choose--be it to inquire about balances or originate a loan. In this world, a call center can be an almost instant source of expert advice and instant gratification that members have come to value and expect.
Nathan Rogers is manager of channel strategy and market innovation for CO-OP Financial Services, a CUES Supplier member based in Rancho Cucamonga, Calif., and parent company of CO-OP Member Center. Rogers can be reached at 800.782.9042, ext. 1232.
Consider attending the CUES School of Product and Channel Management, April 28-29 in Austin, Texas.
Also, learn more about and register for the CUES School of Consumer Lending and the CUES Advanced School of Consumer Lending, slated for Sept. 15-16 and Sept. 17-18, respectively, in Denver.
