By Ray Birch
SCOTTSDALE, Ariz.—Gas stations never used to offer self-service, but today, with the exception of two states pumping fuel without an attendant has become the only way to fill the tank. Now, one analyst believes the pandemic is forcing a similar shift, and it’s imperative CUs understand how content delivery is replacing in-branch selling.
Self-service, or “self-learning,” has become much more popular—and necessary—since the COVID-19 crisis hit, says Sam Kilmer, senior director with Cornerstone Advisors.
“What’s happening now is evolutionary,” said Kilmer. “Just like it happened with gas stations and people preferring to pump their own gas, a similar thing is happening with financial institution knowledge delivery.”
Kilmer suggested the type of knowledge consumers are now absorbing on their own about financial institutions is wide ranging—from specifics about products and services, to general information about those same offerings, to learning more about the institution and its mission.
A Shift
But another fundamental shift is also taking place, according to Kilmer, and that is consumers who have been staying away from branches and isolating themselves at home have become much accustomed to doing their own research on financial services and topics.
“They are preferring to learn on their own time, and when COVID-19 was at its worst, it was really the only way to learn a lot about a provider,” said Kilmer. “People are not only self-learning they are self-buying—essentially selling to themselves.”
Kilmer said a much greater demand is being placed on banks and credit unions today around content generation—content that can help consumers understand financial services and the institutions themselves.
“Consumers are looking for good information right now,” he said.
A Surprise
According to Kilmer, the shift in consumer perception has been a surprise.
“Since the pandemic began, the work we have been doing regarding projects at Cornerstone, such as research and white papers, has dramatically increased,” said Kilmer. “I thought when COVID-19 hit and events got cancelled and a lot of events were made virtual, that part of our business would be negatively impacted. But, in fact, the opposite has happened. We have closed a number of engagements with industry fintech providers to do webinar series and research papers—basically things designed to reach people and allow them to self-learn and self-buy.”
Sam Kilmer
Kilmer said fintechs have been leading the way with content delivery during the pandemic, suggesting it has become even more critical for credit unions to partner with these providers, especially those excelling with content delivery.
“This is definitely a shift that credit unions need to pay attention to now because we don't know how long this pandemic is going to last or how people's habits will change for good from all this,” Kilmer said.
The Ecosystem
Credit unions must better understand the “ecosystem” around content, said Kilmer.
“So, the same way credit unions got smart about the core systems market, how they got smart about the lending system market, and then got smart about digital banking market…they need to do the same around content generation and delivery of it,” he said.
Kilmer stressed the importance of credit unions getting up to speed quickly, arguing content delivery is replacing in-branch selling.
“Be smart about the content ecosystem, that's number one. And, number two, credit unions need strong digital capability,” he said. “I am not talking about digital banking and transactions. It’s about having strong digital marketing capabilities. Digital marketing, and the content you deliver, is how you are going to get your loans during the pandemic and possibly afterward, versus selling in your branches.”
It’s About More
And it’s not just about reacting quickly via digital channels to members’ needs, stressed Kilmer, it’s about being able to reach out to members with digital marketing.
“This is about being proactive,” said Kilmer. “You are not just selling things now, you are becoming a good educator, because how people shop and buy is changing.”