GRAND RAPIDS, Mich.—The proliferation of digital tools that make electronic banking much easier for consumers demands credit unions make the shift next year to become better online retailers, emphasized CU*Answers.
Randy Karnes said it is no longer sufficient to just discuss or consider adding e-banking options—such as e-signature—that truly allow members to handle all of their financial needs remotely. The CEO of CU*Answers said credit unions in 2016 must begin taking action to deliver all of their services via e-channels.
Karnes said that some credit unions are good at online retail, but often those are limited to CUs with specific needs, such as national or statewide memberships.
“I see today these talents are relatively isolated to credit unions that have very special tactics,” said Karnes. “In 2016 these things will become everyday embedded tactics and expectations for credit unions of all sizes.”
What concerns Karnes is that within the entire financial services industry online retail is spreading quickly. Yet he hears CUs, worried about the future, not talking about making online retail a priority within their organizations.
“Can you close the deal wherever the member is?” said Karnes. “That is where you should be investing your IT dollars.”
E-Drop Boxes
Karnes said CU*Answers is working to help credit unions make the transition to becoming better online retailers. For example, the CUSO has placed electronic drop boxes within all of its clients’ systems, making it a standard online banking feature.
Randy Karnes
“We did that so every single credit union we work with would start exchanging documents with members online,” said Karnes. “Not too far down the road, if you are not good at exchanging documents in a virtual channel you will be at a significant disadvantage.”
The same can be said for e-signatures, online account opening, and closing the deal via the web.
Karnes said that while credit unions are becoming much more comfortable with members moving money inside the credit union via remote channels, they have to extend capabilities to allow members to move money from outside sources, too.
Karnes, too, sees credit unions in 2016 investing more in data analytics.
“I think one of the things you will see us focusing on next year is helping credit unions analyze non-transactional data. Meaning we can we track what you did via online banking and mobile banking even if you did not post a transaction,” explained Karnes, who added there is a great deal of data to be gathered from members when they are not completing transactions.
Phone Optics
“For example, we are putting in phone optics that actually record what call center operators do when they talk to you on the phone—how many keystrokes they made, how many different areas of the software they looked at. We can have a phone optics database that says ‘I understand exactly how many times Randy Karnes called me and what he was interested in—whether he completed a transaction or not’.”
Karnes said CU*Answers will offer the same kind of optics within online banking channels.
“Did you view the security message, did you check your balance . . .,” said Karnes. “We can then learn what the member is experiencing not just what the member is posting.”