By Ray Birch
MADISON, Wis.–From a fintech that seeks to make fintech selection simpler to an app that draws Gen Z to the credit union to another that seeks to turn indirect members into engaged, direct members, the Filene Research Institute recently introduced its latest prototype concepts from its i3 group.
This report features five new concepts. CUToday.info will cover the remaining concepts in a second story.
Here’s a look at the ideas that were pitched:
CU Fintech Connect
In the first of two Filene webinars introducing the new prototypes, Megan Freshour, incubation director at Filene, told attendees CU Fintech Connect addresses a critical problem with fintech selection among credit unions.
“The lessons from this journey are clear: dde diligence and fintech selection are paramount. With CU Fintech Connect, we have the power to navigate the fintech landscape with confidence and success,” Freshour said.
Katie Leute, from the “Fast and the Curious” i3 team that developed the prototype, explained that CU Fintech Connect is a collaboration and comparison platform that helps CUs quickly find fintech solutions to add their technology.
“Finding the right fintech partner requires a lot of research,” said Leute, creative brand manager at Salal CU in Seattle. “It takes time and effort, and when key factors are missed, it can cause problems that impact your credit union and ultimately your member experience.”
The Unicorns
“We all know credit unions are unique,” added Dana Jones, a member of the development team. “We are the unicorns of the financial services industry. Imagine a platform that can filter fintechs compatible with your credit union’s ecosystem, your online banking platform, your mobile app... We did an RFI once with 12 different conversational AI fintechs only to find more than half of them couldn't meet our needs. Research takes time—six months, even years of effort to find the perfect match.”
Jones, HR director at from ELGA CU in Grand Blanc, Mich., pointed out that not all credit unions have resources to find the right fintech matches, adding that CU Fintech Connect provides credit union reviews of these young companies.
“I get asked all the time, can you talk to so and so credit union to find out what their experience was with fintechs X, Y and Z? These insights help us make informed decisions and set expectations,” Jones said. “The comparison tool in our solution allows us to understand what's the key differentiator between similar fintech offerings to help us determine the optimal choice.”
Conversion Concierge
According to the team that created it, Conversion Concierge addresses one of credit unions’ biggest pain points--turning indirect members into direct, engaged members. The solution offers a streamlined process for individuals to move their external checking accounts over to the credit union, making onboarding easier, explained i3 team the “Dynamic Disruptors,” which created the prototype.
In a video presentation, the team discussed what they called a typical scenario in which the credit union adds new members in large numbers, largely due to indirect lending. Yet membership growth is still stagnant or even declining.
“Why are those financials not showing member growth? If the CU is knocking it out of the park, why is membership stagnant? Why are members paying off their loans, closing their CDs at maturity and then leaving without utilizing any other products or services?” the team asked.
The Answer
In response to those questions, the team pointed to what it considers to be the biggest issue preventing indirect members from really becoming full members of the credit union—bringing over the checking account.
The group noted that credit unions, and members, are aware of the “hassles” with trucking over a checking account, especially those with direct deposits. The key to getting those new members to make the move, according to Dynamic Disruptors, lies not in technology butin people—a team of concierge staff who work one on one with new members to make the transition pain free.
“Conversion Concierge professionals will do all the work and provide a VIP experience for your members. Members will have a hassle-free transfer, bring over direct deposits, etc. Even among those that are set up on auto payment, members are six times more likely to bring their checking account to your credit union using conversion concierge,” the team said.
Safe-To-Spend
Safe-To-Spend is an “overlay” to the credit union’s mobile app leveraging Gen Z members’ “unique needs and individual data to aggregate available spend, rewards, subscriptions, payments, and credit performance into one customizable screen,” according to Melissa Cade from “O Squared,” the i3 team behind Safe-To-Spend.
Safe-To-Spend is designed specifically with Gen Z in mind to “redefine” the way young individuals interact with their bank account and their finances, said Cade, chief retail officer at Chartway FCU in Virginia Beach, Va.
Cade said the proposed solution provides an alternative homescreen for a CU’s existing online banking application that allows users to customize what they see, bring in new features, all with the goal of putting the person at ease with their finances.
She pointed out that a recent survey indicated just 26% of Gen Z use credit unions.
Where the ‘Key’ Can be Found
“On the other hand, 69% of Gen Z use digital payments, so they’re clearly transacting through someone other than credit unions,” said Cade. “The mobile experience is key for Gen Z with six out of 10 saying they would leave a credit union or bank for one that offered a better experience.”
Cade contended that traditional practices of generational segment marketing and financial education are not enough to attract Gen Z.
“The impact is somewhat grim for both credit unions and Gen Z. Credit unions risk becoming irrelevant,” she said. “When walking in Gen Z’s shoes during our research, many did not understand what a credit union is. Those that were familiar did not rate their experience as good as common experiences with Apple or Amazon. Gen Z is telling us they want transparency and immediacy.
“It's also clear that Gen Z's perception of the banking experience is centered around their payment experience,” she considered. “Considering all of this, creating a payment experience that is centered around transparency, immediacy, and leveraging the strength of credit union advocacy, could be the key to gaining the trust of Gen Z. That is why we created Safe-To-Spend.”
Wallet Wise App
Wallet Wise is an app for credit union members to improve CU financial education efforts, with “age-tailored lessons and perks, breaking the cycle of poor financial management and fostering financial freedom,” according to i3 team “Not So Full House,” which created it.
“In recent years we have experienced a rapid rise in the cost of goods that outpaced the typical consumers’ income,” the team stated in a video message. “Many consumers were caught off guard by this and were not financially prepared. So, we asked how might we, in the credit union industry, help our members who live paycheck to paycheck quickly gain financial security.”
The Features
Like other apps, Wallet Wise is free and grants users the autonomy to choose a preferred method of rewards.
The application provides features such as credit building and credit starter loans, consolidation loans, financial education and goal setting capabilities that unlock rewards. These rewards include rate increases for deposit products, reductions in loan rates, fee discounts and assistance with car down payments, the team explained.
BizNest
BizNest is a one-stop shop, small business incubation resource for new and aspiring business owners.
“The beauty of the business app is its simplicity. BizNest, through a series of prompts, first assesses a user and then size and profile level—egg, chick or eagle,” said Karlee Wallin, from the “CU Care Bears” i3 team behind BizNest.
Each profile directly correlates to where the user is on their “small business journey.”
“It's a dynamic depository of resources to answer those questions of growth and scale. Most importantly, the business app is a safe space for entrepreneurs to meet their need for financing and credit and allows them to be connect with credit resources, where they can engage with vetted business service providers and lenders,” said Wallin, business baking manager at Royal Federal Credit Union in Eau Claire, Wis.