By Eric Weikart
Ahh, the 1980s. Some of the technology highlights of this era include Betamax tapes, calculator watches, pagers and Sony Walkmans. For the most part, the public has eagerly chased the latest and greatest technology, leaving these relics behind. But as with anything nostalgic, there are always some whohold on. Is your credit union in this category? Do you still have technology and processes in place from the 1980s that should have been replaced or upgraded years ago?
Let’s look at one holdover from the past I still see at many credit unions—antiquated new member and new account processes. This initial entry into the credit union is what I would call table stakes, and a good first impression is vital. Here is a quick self-assessment to see if you are still holding on to the past.
Are third-party providers integrated into your core processor?
Third parties you link to during account opening may include the credit bureaus, ChexSystems, check vendors, debit providers, etc. A member service representative should never have to access their system separately, enter another username/password or rekey member data. This takes time and leads to needless errors. There is often a simple fix. The third-party processor most likely has the ability to provide a seamless connection—it may just be a matter of turning something on or off.
Does your core processor have fields to capture all the information you need?
Several credits unions I have worked with don’t have the necessary fields to record and save Bank Secrecy Act “know your customer” information. This leads to the MSR writing information down or entering it into a spreadsheet, where it is never linked back to the member file or accessed again. This is another inefficiency and time waster.
Are you printing out forms or, even worse, filling out applications by hand?
New member and account opening forms, such as signature cards, should populate from initial member information input (or already on file from previous account openings). Any required documents should get electronically signed and besaved electronically. I still see credit unions printing out forms, getting a signature and then scanning them to the document imaging system--not a recommended practice.
A member will typically give you about 20 minutes to open an account before getting restless. Ideally, your MSR would spend three-quarters of that time building the relationship and uncovering member needs, then just a few minutes with data entry and paperwork. Credit unions relying on outmoded technology are spending that gift of face-to-face time in a way that does not add value to the member relationship. It’s time to move on.
Eric Weikart is senior director at Cornerstone Advisors Inc., a CUES Supplier member and strategic provider based in Scottsdale, Ariz.
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