By Anthony Burnett
Credit unions are the heart and soul of America. These member-owned and operated institutions are woven into the fabric of the communities we live, work, raise our families and build our lives.
Most of us are not born with the equity we need to see our hopes and dreams come true, and we need money to finance our education, our houses, cars and businesses. Credit unions step in to make all of this possible. In today’s changing consumer environment, where omni-channel delivery is the norm, credit unions are challenged with delivering services in a way that deepens their wallet share, household penetration and margins so they can continue to fuel the American spirit.
In years passed, that service was almost universally delivered the same way. A member interacted with a “banker” in a branch across three feet of mahogany. Most interactions were transactional in purpose as the world had fewer channels for consumers to access financial resources, and the delivery model worked. No, it worked great!
However, today we have smart phones, the Internet, and global mobilization thanks to technology. Routine components of all things financial are now automated. Therefore, the purpose of the physical channel i.e. the branch has changed and with it the identity of the banker.
What Is Happening
A 2014 Ernst & Young study sheds light on what is happening and what credit unions have done to adapt. The graph below shows consumer channel preference by banking task. The study found consumers prefer “non-human” channels for routine and automated tasks. However, more complex interactions require in a physical channel…especially sales.
As the chart above shows, over the last decade, FIs have been moving toward a different branch delivery model based on these preferences. What was born are Universal Bankers who do so much more than the routine–they educate, advise, and teach consumers as they discuss products, introduce experts and create deeper relationships with their members.
The deepening of relationships with the member is the key. Consumers today are becoming better at research and analysis, but they need help making decisions and choosing a partner. So, they’ll ask a friend or a thought leader, and then go and meet the people others also trust.
Five Steps To Take
Here are five steps to optimize that experience:
1. Hire people who are engaging. Member engagement is a culture shift that moves away from transactions and toward conversations.
2. Train the member service reps (MSRs) to ask questions. Educate the consumer before offering solutions. The MSR’s job is to listen first, and then speak from his/her wealth of knowledge.
3. Invest in tools that automate routine activities and create margin to invest time with members. Scheduling tools, staffing models, cash automation, ATMs, and Interactive Teller Machines are some examples.
4. Remove the barriers to the member. Often this involves eliminating fixtures that separate the member from the banker, but it doesn’t have to be radical. The key is the facilitation of the desired experience.
5. Promote the credit union’s brand in the physical environment. Stay away from artwork and use flat screens and marketing materials to communicate your unique brand message and value proposition so the community and member know what you are about.
Credit unions that embrace this model often see dramatic results. According to NCUA, a credit union in Tennessee grew its loan portfolio by 50% in four years, and another in the Carolinas grew its book of business by over $100 million in a similar period.
Investment in people and creating an environment that fosters engagement can change cultures. And, that culture is about building relationships and the Heartbeat of the Universal Banker.
Anthony Burnett is Customer Experience Director with Level 5, Atlanta. For info: www.level5.com.