Dispelling the Personalization vs. Standardization Myth
By Gilad Komorov
This past year has accelerated digitization trends like never before. And credit unions aren’t exempt from that. Throughout the pandemic, members and credit union employees demanded remote, digital banking to ensure safety. All indications are these digitization trends aren’t going anywhere.
But credit union leaders naturally have trepidation surrounding the movement towards digital-first banking. Unlike traditional banks, credit unions pride themselves on highly personal and individualized services. How can this co-exist with a digital transformation?
In fact, technology today can allow credit unions to design customized journeys and workflows to improve the member experience, reduce paperwork errors, and complete more interactions faster.
Here, we’ll look at some of the ways digital journeys can augment the human touch at credit unions.
Does Digitization Conflict With a Member-Centric CU Experience?
There’s a tendency to think that digitization and automation detract from the friendly, personal service that upon which credit unions stake their reputations. That may well have been true in the past when technological solutions were more rudimentary and static. It’s also true for point solutions, which fail to provide a cohesive member experience.
But today’s best-in-class technological capabilities promote a more, rather than less, human experience. End-to-end digital platforms can be adjusted to meet the needs of individual members. By automating much of the gruntwork, such as physical forms and data entry, credit union agents have more time to spend providing a high-quality, personal experience.
Imagine a typical credit union representative. A great deal of their day is spent vetting potential members, filing paperwork, redoing forms, inputting member data, and chasing members for supporting documents to ensure processes can be completed.
Simultaneously, there is an expectation they will chit-chat with members, think of creative solutions to member-specific problems, and provide guidance.
Expanding digital programs allows employees to spend less time on mindless compliance and paperwork tasks, and more time providing caring, tailor-made service. Employees can engage more deeply in value-added activities where human input is essential
3 Key Ways Digitized Claims Supports Personalization
From faster turnaround time to reduced errors, here are three ways digitization can improve the credit union member experience.
Reaching Members Where They Are
Applying for membership at a credit union, trying to take out a personal loan, getting auto financing, or applying for a mortgage all involve various degrees of stress. Members may variously be concerned that they aren’t qualified enough, won’t meet the criteria, or will make a mistake in the paperwork.
While some of this is just an inherent part of the banking process, there are things credit unions can do to relieve (rather than add to) this stress. One of those things is to allow members to complete tasks from any location.
For example, let’s say a member applies for a loan from their desktop computer, but later on they are outside and decide they want to modify some aspect of their application. They should be able to do so easily on the fly, without having to be in front of a computer.
Technology allows members to receive a consistent level of service from their channel of choice, at the time and location of their choice. Credit unions shouldn’t assume that they have access to computers, scanners, or fax machines — all of which are devices that are location-dependent.
Instead, mobile-optimized banking technology allows members to onboard, apply for services, or complete tasks from anywhere — whether they’re on the train, at home, or out and about.
Speeding Up Transactions
Members typically only seek out their credit unions when they need something beyond the simplest transactions (e.g., withdrawing cash, checking their balance). Yet they expect these slightly more complex transactions to be just as quick and seamless as their routine transactions.
For instance, take applying for an auto loan — a common credit union task that often ends up being more cumbersome than it needs to be. The pre-qualification process usually means waiting around for approval. Once approval is granted, members are typically required to submit additional supporting documentation. This also takes time, as borrowers are required to show up to the physical branch, email back and forth, and field phone calls asking them to redo paperwork or submit additional information.
The sheer amount of time it takes for members to complete such processes is unacceptable given how much credit unions pride themselves on providing a member-centric experience.
Allowing members to fill out mobile-optimized forms that rely on auto-complete and conditional logic ensures the application itself can be completed quickly. Members should also be empowered to simply snap photos of the documents and send it over via text message. Completing e-signatures should be similarly fast and instant to undertake via smartphone, rather than email-centric PDF. With better technology, members can get their pressing financial needs handled more quickly.
Improving Payment Efficiency
Once a new credit union member’s account is created, they need to submit the initial payment. Technology can make it easy for new members to make that minimum deposit without having to visit a physical branch. Members should be able to pay securely straight from their smartphones in real-time. Digital payment systems are also highly secure and PCI-DSS compliant.
The Bottom Line
Credit union members expect a higher level of digital service in light of the coronavirus and accelerated digital trends. Credit unions stand to gain a great deal from accommodating these digital expectations. By adopting agile, automatic, and intuitive technologies that incorporate remote employee guidance, credit unions can ensure that digital journeys co-exist harmoniously with a warm human touch.
Gilad Komorov is chief revenue officer with Lightico, a New York-based platform that seeks to digitally transform consumer interactions.