18.5 HCUL Bring Your Digital Lending into the Endzone (1)
Transcript of 18.5 HCUL Bring Your Digital Lending into the Endzone (1)
5/5/2018
1
B R I N G YOU R D IGITAL L EN DING I NTO TH E EN D ZON E
Hawaii Credit Union League ConventionMay 19, 2018
H ELLO!
2 Dig i ta l Len d in g
Cortney AngeleyImpact [email protected]
3
W h o W e AreA B O U T F I LE N E
Filene Research Institute conducts research, tests innovative pilot concepts and offers proven solutions that create meaningful impact for credit unions and drive positive change for credit union members.
Dig i ta l Len d in g
Our research (THINK)
+ our innovation (DO) + our action (CHANGE)
= the secret formula.
5/5/2018
2
THINK.
H ow W e W orkA B O U T F I LE N E
4 Dig i ta l Len d in g
Everything we do is ROOTED IN RESEARCH.
Through innovation, we turn RESEARCH INTO IDEAS.
We put IDEAS INTO ACTION through impact.
DO.
CHANGE.
A C R ED IT U N ION C H AN GED M Y L IFE
That’s me!
5 Dig i ta l Len d in g
ALW AY S LOOKI NG TO THE FUTURE …
6
“Progress is the constant replacing of the best there is with something still better.”
– ED F ILENE
Dig i ta l Len d in g
5/5/2018
3
W HY DO E S E AS E M AT T E R?
7 Dig i ta l Len d in g
8
R emember W hen?
Dig i ta l Len d in g
9
T h e F u t u re is H ere!W H E R E A R E W E H EA D IN G ?
Dig i ta l Len d in g
5/5/2018
4
1 0
W H E R E A R E W E H EA D IN G ?
Tech - Sav v y N at iv es are t h e Fu t u re!
Dig i ta l Len d in g
• #8YearOldsAreUsingHashtags
Make Ease of Use Your New Mantra!
I f K eep ing Your M embers M at t ers…W H O ’ S Y O U R C O M P E TIT IO N ?
1 1
P wC ’s Fin an cia l Services Institu te (2 011). Getting to Kn ow Yo u: Bui lding a Cu sto mer-Cen tric Bu sin ess Mod el for Reta il B anks
Dig i ta l Len d in g
T h e Exp erien ce M at t ers
1 2 Dig i ta l Len d in g
5/5/2018
5
L E T ’ S RE F L E CT
1 3 Dig i ta l Len d in g
→ When has a poor service experience changed where you do business?
The F ilene M et hod
1 4 Dig i ta l Len d in g
The F ilene M et hod
In sig h t s Go al
1 5 Dig i ta l Len d in g
Identify a problem to solve through the collections of data points.
5/5/2018
6
H o w M ig h t W e M itig ate t h e Imp act o f St u d en t L o an D eb t f o r C o lleg e St u d en ts?
1 6 Dig i ta l Len d in g
1 7 Dig i ta l Len d in g
1 8 Dig i ta l Len d in g
5/5/2018
7
1 9 Dig i ta l Len d in g
N et nography
2 0 Dig i ta l Len d in g
2 1 Dig i ta l Len d in g
5/5/2018
8
Ideat ion Goal
2 2 Dig i ta l Len d in g
Find as many solutions to your stated problem as possible, and identify those
worth exploring further.
Ideas � Action
D ebt D ragon
2 3 Dig i ta l Len d in g
Ideas � Action
QC ash
2 4 Dig i ta l Len d in g
5/5/2018
9
2 5 Dig i ta l Len d in g
2 6
Filene collected data from 5,247 members across 16 credit unions to examine member experiences across 1 of 4 contexts…
Dig i ta l Len d in g
Pred ict in g L o yalt y
2 7 Dig i ta l Len d in g
5/5/2018
10
2 8
K ey F ind ings & R ecommendations
• Credit Unions excel in consumer lending but struggle if a member applies for a mortgage or joins via the web.
• Consumer lending scores set the standard for mortgage lending and joining the Credit Union.
• Using consumer lending scores as a benchmark will force Credit Unions to honestly assess their bottlenecks.
• Identify consumer lending best practices and seek to replicate them across mortgage lending.
• Set expectations for mortgage lending:
→ Clear statements of process→ Reminders of where the member is
during the process→ Excellent follow ups→ Clear and timely responses to all
questions
Dig i ta l Len d in g
2 9
K ey F ind ings & R ecommendations - 2
• Improve the transition between web-application mortgages and human processing
• We found that the poor performance from web-initiated mortgages, with poor handoff and subsequent communication, is negatively impacting members’ willingness to keep using Credit Unions
Dig i ta l Len d in g
3 0 Dig i ta l Len d in g
W h o D o es it B est ?
5/5/2018
11
3 1 Dig i ta l Len d in g
D ominos Pizza!
3 2 Dig i ta l Len d in g
St arbucks!
D ecreasin g t h e H assle
3 3 Dig i ta l Len d in g
• 56% report having to re-explain an issue
• 57% report having to switch from the web to the phone
• 59% report expending moderate-to-high effort to resolve an issue
• 59% report being transferred
• 62% report having to repeatedly contact the company to resolve an issue
5/5/2018
12
3 4
Loyalt y has a lo t more t o do wit h how well compan ies d eliv er o n th e b asics
• 25% of customers are likely to say something positive about their customer service experience
• 65% are likely to speak negatively• 23% of customers who had a
positive service interaction told 10 or more people about it
• 48% of customers who had negative experiences told 10 or more others
Dig i ta l Len d in g
3 5 Dig i ta l Len d in g
ARE Y OU MAKI NG THE R I GHT MOV ES?
3 6 Dig i ta l Len d in g
1. Attitude is Everything
2. Know What’s Important
3. Frictionless Lending
4. Human vs. Digital Touch
5. Integration
5/5/2018
13
3 7 Dig i ta l Len d in g
� Define what digital banking means for your Credit Union
� Know that a definition does not help with deployment - it’s a
mindset and a culture that must be built
� What comes to mind when Credit Union leaders hear the term
“digital banking”?
3 8 Dig i ta l Len d in g
3 9 Dig i ta l Len d in g
Does your Credit Union…
�See “going digital” as an evolution of all financial institutions or
an unnecessary distraction?
�Consider digital a means to an end or an end state?
�Consider digital as a zero-sum game?
5/5/2018
14
4 0 Dig i ta l Len d in g
�There will always be reasons to not go digital
�Consider the impact to your Credit Union with regard to attracting
and retaining members
�Consider the gaps between importance and the current level of
satisfaction
4 1 Dig i ta l Len d in g
4 2 Dig i ta l Len d in g
5/5/2018
15
4 3
Does Your Credit Union…→ Know its priority items for digital activities?→ Monitor and assess how satisfied members and
employees are based on organizational and member priorities?
→ Have a plan of action to reduce the expectations gap?
→ Know what types of challenges it faces?→ Weigh the downside of not tackling those
challenges?→ Identify when challenges become an excuse for
inertia?→ Have a plan to tackle the challenges?
Dig i ta l Len d in g
“Knowing the member and what they need is priceless… How do we make it easier for the member?”
M E M B E R S E R VI C ES LE A D E R A T A $ 2 0 0 M I L L I O N A U A C R E D I T U N I O N
4 4 Dig i ta l Len d in g
�Speed of approval is an attractive
characteristic for your members
�We’re in the world of instant everything!
�In what situation can friction be viewed
positively?
�In what areas can your credit union simplify
the friction and what areas are off limits?
“It’s about the members experiencing fewer points of resistance.”C H I E F LE N D I N G O FF I C E R A T A $ 3 B I LL I O N A U AC R E D I T U N I O N
4 5 Dig i ta l Len d in g
In situations where Credit Unions may be at a disadvantage because they are not as fast and/or one step removed (e.g. indirect lending), reducing the friction to a “yes” is extremely important and deemed more of a real help than a potential pitfall.
Does Your Credit Union…� Consider speed to be an important advantage to gain when considering a
digital solution?� Know that a seamless lending process is great, but is still concerned faster
doesn’t always mean better?� Identify sources of needless friction (e.g. too many processes,
complicated lending policies, duplicate staff roles)?
5/5/2018
16
4 6 Dig i ta l Len d in g
�Digital lending implies a channel of service
�Digital lenders are focused on a fully immersive digital experience
�Digital lenders are focused on lending only – this allows them to operate in a different fashion
4 7 Dig i ta l Len d in g
Does Your Credit Union…
� Distinguish between digital and automated activities?
� Seek to adopt digital activities as a means to improving a personal, high-touch service model in order to ensure member intimacy?
“A strong aspect of our lending activities is the personal interaction with members. We don’t just look at credit scores.”
C H I E F LE N D I N G O FFI C ER A T A $ 7 0 0 M I LL I O N A U AC R E D I T U N I O N
4 8 Dig i ta l Len d in g
Prioritizing Activities
Prioritizing where to invest along the end-to-end process shows that online loan applications and systems integration share the top spot.
Other Priorities Mentioned
• Communications to members, including confirmation of application, approval of loans
• Automated cross-sell opportunities are presented (to staff and members)
5/5/2018
17
4 9 Dig i ta l Len d in g
5 0 Dig i ta l Len d in g
Does Your Credit Union…
� Know what its weakest systems integration points are?
� Have a game plan to tackle those weaknesses?
� Have an LOS it is satisfied with? � Have features that serve your needs today
and tomorrow?� Do you know what your needs will be
tomorrow?
5 1 Dig i ta l Len d in g
5/5/2018
18
THANK Y OU!
Q U E S TI O N S ?
filene.org | 608.661.3740
N EED M OR E B R AIN FOOD ?
Cortney Angeley