By Ray Birch
SAN ANTONIO—Chat can do more than just assist members with transactions, according to one expert, who says the channel should also be optimized to accept payments.
It’s a step that should be part of a larger strategy of accepting additional payment types than traditional ACH for bill pay, including credit cards and even cryptocurrency, says James Patrick, VP-product management with SWBC’s Financial Institutions Group.
Patrick told CUToday.info there is a growing need for credit unions to do more with every channel that connects with members. Patrick pointed out the greater use of digital during the health crisis demands CUs make their bill payment and money movement options more expansive.
Patrick emphasized it is about meeting fast-changing consumer expectations, which continue to be driven by the ongoing health crisis.
“Expectations are certainly changing, especially during this past year-and-a-half,” said Patrick. “But are credit unions changing their bill payment and money movement processes along with this shift?”
Patrick acknowledged that for many years credit unions have been allowing members to pay their bills online and shift money. Many, however, have not given a great deal of attention to making these payment methods simpler, more intuitive and extremely flexible. He also noted fintechs are streamlining money movement and bill payment, altering what members expect when they look to use that same functionality with their credit union.
Free Webinar Offered
SWBC is offering a free webinar Aug. 11 to learn how and why optimizing a borrower’s user experience is vital to an overall successful payments program. The webinar will also share how credit unions can rely on technology to help mitigate payment risk and offer insight into the shift to digital payments over the last year due to the pandemic, according to the company.
Patrick emphasized that not only should these credit union processes be brought up to speed with the simplicity of what many of the big banks and fintechs are offering, but also should be broadened to accept more payment types.
“The credit union’s systems should be able to accept multiple tender types,” said Patrick. “Many credit union systems rely on ACH. But they need to add options, such as from a debit or credit card. This is about convenience. It may mean bringing in new technology platforms to enable this capability. User experience is a vital part of a payments program, including how an effective user journey impacts account holders.”
New channels to accept payments should be added, as well, he recommended.
“If they don’t accept payments now via interactive voice response, they should add that capability,” Patrick said.
What Needs to be Considered
Patrick also suggested credit unions consider text as a payment method.
“Certainly they should consider text alerts to let members know when a payment is due,” he added. “This is all about making the payments experience better for members.”
And that includes chat, which is in the process of being optimized for accepting payments, predicted Patrick.
“Another avenue will be virtual assistants or chatbots,” he said. “Yes, these tools help members when they have questions or need assistance, but what about taking a payment directly through the chat session? That is going to happen. Members cannot only get their payment questions addressed via chat, but finalize the payment right there.”
With the Federal Reserve discussing the potential for a digital dollar, and a greater acceptance of cryptocurrency growing, Patrick said credit unions should at least be thinking about the possibility of accepting cryptocurrency for payments.
“Financial institutions are focusing more on crypto,” he noted.
An Additional Risk
But the shift to faster, real-time digital payments also brings with it additional risk, noted Patrick.
“With the payment being made immediately, it is more difficult to claw money back if that is necessary,” he pointed out. “More risk mitigation is needed to protect the institution.”
The one-hour webinar will be held Aug. 11 at 11 CDT. Click here to register.