PALM DESERT, Calif.–As it marks its 40th anniversary this year, PSCU said it is making big investments in the future based on the reason it was formed in the first place.
PSCU, which was founded in 1977 by five Florida credit unions, now handles 2.2 billion transactions a year for its 850 member-owner CUs. Unlike 1977, said its CEO, Chuck Fagan, service is a long way from just answering the service in a polite way.
Outlining PSCU’s strategic priorities for the next few years, Fagan repeatedly touched on the theme of the meeting, “The Story of Service,” and the ways PSCU is investing to execute on that.
“We have redefined what service needs to be,” said Fagan. “When your member connects to you through whatever channel, that complete profile has to be seen (by the CU employee) to deliver on that member experience. Toggling between screens doesn’t get it done anymore. It greatly enhances your and our ability to serve that member. The member should never leave your comfortable, safe place. Technology has become a significant part of that focus on service.”
Since PSCU last held its Member Forum in 2016 in Nashville, Fagan said:
- Net Promoter. PSCU’s Net Promoter score in the B2B space at year-end 2016 was 44, which was up significantly, he said. “We have to maintain and try to move that.”
- Member alignment. “To the degree that the member never knows that PSCU exists, we’ve hit a home run with you.”
- Today’s competitive market. “This year’s message isn’t about righting the ship. This message is about staying the course, moving forward, and moving up. How do we win in today’s competitive market? It’s just like asking the consumer to align with you rather than that massive bank down the street. We’re asking you to align with a CUSO, keep it in the system. At the end of the day, we think PSCU is where you need to be.”
- Advances in technology. He pointed to the company’s investment in MemberConnect 2.0 and its Member Insight data. He also cited its recent investment in PinDrop, an anti-fraud solution.
While PSCU is most often thought of in the payments space, Fagan reminded it provides significant call center services, as well, handling 20-milion calls for member-credit unions every year. In 2015, PSCU invested in interactive voice response (IVR), and is now investing in a new phone switch being rolled out that’s all about intelligent routing. Over the next year, it is also investing in its Total Member Care solution and combining CUScripter and Call Pro into one system so that its reps can handle any call type.
Support, Protect, Optimize
Proactively focusing on its business moving forward, Fagan said the CUSO’s theme is Support (move past foundational fixes), Protect (risk management) and Optimize (targeted investments in our future). He also pointed to one poll of financial execs that showed 2017 priorities are enhancing digital experiences, enhancing data analytics, and reducing operating costs, which he said align with PSCU’s own priorities (although he said fighting fraud is also high on its list).
Looking to the future, Fagan said:
- “We anticipate credit card growth in 2017 will be more than 9%. Every CU you talk to is trying to crack the code on the Millennial, and I don’t discount that in any way. But more than 50% of that 9% growth is coming from Boomers. Boomers have built up a life of savings; they want to get out and travel.”
- More focus on drivers of purchasing decisions, which, Fagan said, are often made by women.
- Awareness of changing population demographics, including those aging Boomers wo are making purchases.
- Move towards cashless. “These people want rewards. In Q1, restaurants, airlines and groceries were the dominant purchases. The luxury category is in decline.”
The To-Do List
On his “to-do list,” said Fagan, noting all plans are made with a fundamental understanding that risk and security is the umbrella over it all, added, “When we look at enabling the digital experience, we need to know not only what the member wants, but what BofA, Wells, Cap One, what those guys are doing, and then position our products to compete more effectively. Those members are unforgiving if you don’t know them, look out for them, and reward them.”
Fagan, a long-time PSCU executive who left the company to lead the Credit Union Executives Society before returning as CEO of PSCU, said his two years with CUES taught him the important of engaged employees. “That’s right at the top of our list and we’ve driven all kinds of training programs at the company to elevate people, to broaden their capabilities, to ensure they are equipped for what the future might hold.”