Becoming a Great Sales Coach - The Keys to Successful Credit Union Resilience NICK BROWN - Credit Union Business Magazine

Becoming a Great Sales Coach - The Keys to Successful Credit Union Resilience NICK BROWN - Credit Union Business Magazine

                             T H E S TA F F I N G I S S U E
                                                                   MAY 2018 | VOLUME 13 | ISSUE 5

a Great


The Keys to
Credit Union
Becoming a Great Sales Coach - The Keys to Successful Credit Union Resilience NICK BROWN - Credit Union Business Magazine
" Click on iPad to watch cartoon"
Becoming a Great Sales Coach - The Keys to Successful Credit Union Resilience NICK BROWN - Credit Union Business Magazine

CONTENTS                                                                                                            MAY 2018 | VOLUME 13 | ISSUE 5


     What does a                        • High Quality monthly magazine.

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                                                                                                                                      R   AINING
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                                                                                                                                                                                    6 | $9.95                                   eMortgages
                                                                                                                           IN   ESS T                    | VOLUM
                                                                                                                     H BUS
                                                                                                                                               JUNE 2014                                                                                  Keith Kelly
                                                                                                 THE B
                                                                                                                                                                                                                              Credit Unions Keepin
                                                                                                                                                                                                                                                  g Up
                                                                                  All                             Stars!                                                                                                      With Banks for Mobile
                                                                           The CU     (CU Trainin
                                                                           Paul Nunn ’ Hollis (CFO Curren liance Update)
                                                                                                                                                                                                                              Banking Services
                                                                                                                                                                                                                             by Roy W. Urrico
                                                                           Emily More rson-Kapke (Comp
                                                                            Jennifer                  Mortgage)
                                                                                        (CU Mobile
                                                                            Keith Kelly s (CU CEO)                                                                                                                        Products Per House
                                                                            James Collin (Lending Solutions)
                                                                                       son                                                                                                                                What Does it Mean
                                                                             Rex John k (CU Content)                                                                                                                                        to
                                                                             Laura Enoc Dios (CU Outreach)
                                                                              Miriam De
                                                                                                                                                                                                                          Your Staff?
                                                                                                                                                                                                                          by Jack Kelly
                                                                                The Best nches
                                                                                to Build

7                                                        24
                                                                                 is to Kn wn
                                                                                  Thems Collins

  UP FRONT                                                      PAYMENTS
                                                                                    by Jame
                                                                                     The Chang siness
                                                                                     Face of

		Sharing is Caring, CU Style                            		In 2018, Credit Unions Need to Meet Their
                                                                                        by Laura
                                                                                                                                                                                                                       -Kapke, Keith
                                                                                                                                                                                           Nunn, Jennifer
                                                                                                                                                                              Hollis, Paul
                                                                                                                                                                   Emily Moré
                                                                                                                                                        from left:         Rex Johnson
                                                                                                                                                Top row
                                                                                                                                                             James Collins, Miriam De Dios
                                                                                                                                                 Middle row:
                                                                                                                                                              Laura Enock,

		Tim O’Hara                                                    Members Where They Are
                                                                                                                                                 Bottom row:

                                                         		Cyndie Martini
		Becoming a Great Sales Coach
		Nick Brown
                                                         28 CFO CURRENCY
                                                         		The Evolution of Fintech and Alm
                                                         		Alec Hollis and Michael Oravetz
		“Member banking is better banking ”        ®
                                                         32 TECHNOLOGY
                                                         		Banking Innovations
  captures the theme of brand initiative
		Randi Marmer                                           		Kevin Stehl


       Branch Robots and the Hype of Tomorrow
                                                         36 LENDING LINE
                                                         		The Future is One-Click Lending
       Can Hold Your Credit Union Back                          Dave Buerger
       Chad Davis
                                                         40 PORTFOLIO STRATEGIES
19     OPINION                                           		Immediate Investment Portfolio Strategies
  Why Bank of America’s Fee Hike is Bad                         For a Rising Rate Environment: Part One
  for Communities, Consumers and the                     		Mark Wickard
		Gabe Krajicek                                          45 MARKETING MATTERS
                                                         		Why Do You Have a Website?
		The Keys to Successful Credit Union
                                                         		Eric Gagliano

		Resilience                                             47 IN THE NEWS
                                                         		Credit Union of New Jersey’s
		Gene Fredriksen
                                                                Spring 2018 Breakfast Club Forum
                                                                was a Huge Success!
                                                                Murray Halperin


 C R E D I T   U N I O N   B U S I N E S S       |   M A Y     2 0 1 8                 |                                         C U B U S I N E S S . C O M
Becoming a Great Sales Coach - The Keys to Successful Credit Union Resilience NICK BROWN - Credit Union Business Magazine


     Tim O’Hara, Editor & Publisher
     Kaitlin Morrison, Editor, Branch Business
                                                                   THE O NLY A LL-DI G I TA L, A LL-BU SI NE SS RE SO U RCE FO R CRE DI T U NI O NS

                                                                                         T H E S TA F F I N G I S S U E                                                                                                       MAY 2018 | VOLUME 13 | ISSUE 5

     Ashok Kumar, Associate Publisher                     Becoming
                                                          a Great
     Patti Manzone, Designer
     UP FRONT                                             NICK BROWN
     Tim O’Hara
     IN-BRANCH PRODUCT SALES                              ALSO IN THIS ISSUE:

     Nick Brown                                           The Keys to
     BRANCH INITIATIVES                                   Successful
     Randi Marmer                                         Credit Union
                                                          GENE FREDRIKSEN
     Chad Davis
     Gene Fredriksen
     Gabe Krajicek                                       Credit Union BUSINESS is published monthly
                                                         (12 issues per year) by CU Business Magazine,
     PAYMENTS                                            Inc. A one-year Digital membership is $75/yr
     Cyndie Martini                                      An online membership form is available at
     Alec Hollis & Michael Oravetz                       TEAMBUILDER
     Kevin Stehl
     LENDING LINE                                        SALES AND ADVERTISING
     Dave Buerger                                        Tim O’Hara, Publisher
                                                or 561-282-6015 #1
     Mark Wickard                                        CONTACT INFORMATION
     MARKETING MATTERS                                   Credit Union BUSINESS Magazine
     Eric Gagliano                                       P.O. Box 2223, Palm Beach, FL 33480
                                                         (561) 282-6015 | (561) 588-7711 (fax)
     IN THE NEWS                               
     Murray Halperin

 C R E D I T   U N I O N   B U S I N E S S       |   M A Y         2 0 1 8                           |              C U B U S I N E S S . C O M
Becoming a Great Sales Coach - The Keys to Successful Credit Union Resilience NICK BROWN - Credit Union Business Magazine
UP FRO NT                                                                                                       BY TIM O’HARA

Sharing is Caring, CU Style

             ne of the greatest things about credit unions,        4. Gabe Krajicek, CEO of Kasasa, opines on Bank of
             in my opinion, is your readiness to work with             America’s recent fee hikes and why they’re bad for
             other credit unions toward the betterment of              the economy.
             your memberships. That’s pretty unique in             5. PSCU’s Gene Fredriksen addresses cyber security for
             the world of BUSINESS! Cooperation is one                 credit unions.
of the keys to the continued great success of credit unions        6. Payments expert Cyndie Martini discusses the most
as an industry.                                                        up-to-date methods of keeping credit unions current
     What I like best about editing CU BUSINESS                        with member technology.
e-Magazine is being able to hold up best practices that one        7. Investment advisory ALM First’s Alec Hollis and
credit union discovered in order to share with other credit            Michael Oravetz discuss financial technology and its
unions. It happens every month.                                        importance for keeping CUs competitive.
     The editorial team here at both Credit Union                  8. Kevin Stehl , Vice President of Product, Marketing,
BUSINESS and Branch BUSINESS are always on the                         and Digital at SECU, Maryland’s largest credit union,
lookout for new success stories to share with our growing              brings the latest CU technology trends for our review.
audience of 17,000 paid subscribers, the vast majority of          9. One click lending is covered by Dave Buerger,
whom are full-time credit union executives from all parts              Chief Executive Officer of CUneXus Solutions, and
of the USA and Canada.                                                 member expectations for a seamless lending program.
     Every day, I receive terrific information from credit         10. Immediate investment portfolio strategies in a rising
unions. For example, this morning, I received a short                  rate environment by Oppenheimer’s Mark Wickard.
article from Pelican State Credit Union about the financial        11. Why does your credit union have a website?
education it does for it’s members. You’ll be reading                  MarketMatch’ executive Eric Gagliano explains.
about it next month.                                               12. Credit Union of New Jersey’s Breakfast Club Forum
     This is a long-winded way to say we welcome editorial             – by Murray Halperin.
contributions from our audience of credit union officials
to share their hard-earned knowledge with like-minded              That’s a whole lot of good information for credit union
professionals.                                                     executives, and we’re always seeking more of it. Please
     I hope you’ll invest a few hours to peruse the contents       shoot me a line at if you’ve got
of this digital magazine. Here are one dozen very helpful          something to share.
BUSINESS articles to designed to help you run your                 Thanks for reading!
credit union, which CUB’s mission statement:
1. In-Branch Product Sales, Nick Brown lays out several
   steps to help you become a great sales coach (also              PS: If you haven’t watched our new animated video
   featured as cover art).                                         describing the highly discounted and richly beneficial
2. TruMark Credit Union’s Randi Marmer give some                   subscription offer, please click on the iPad pictured on our
   terrific ideas about its new branding initiatives,              house ad on page two and throughout this issue.
   including links to two tv commercials.                          Thanks, again, for your BUSINESS!
3. Chad Davis of Kronos, predicts that people, not robots
   will operate credit union branches and continue the
   credit union excellent human touch.

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Becoming a Great Sales Coach - The Keys to Successful Credit Union Resilience NICK BROWN - Credit Union Business Magazine
IN - BRA NC H                                                                                                BY NICK BROWN

Becoming a Great Sales Coach

                     ho is the best coach you have ever
                     had? For me, it was Hal, my little
                     league soccer coach. He taught me
                     how to play the game and how to
                     love it. But more importantly, Hal
built my confidence and helped me realize my fullest
potential as a little league soccer player.
    Great coaches are amazing influences in our
lives; which is why you were likely able to think of
someone quickly. They teach and inspire. They help
us to achieve what we believe is unachievable. Behind
every great sports athlete there is a great coach. Unless
of course, you are LeBron James. The same applies                 Many of the best coaches, those who help others to
to every credit union sales rep. For sales to thrive at           achieve exceptional success in any given area, were at
your credit union and on your credit union teams, there           one-time players in their respective industry or craft. In
must be competent sales leadership and consistent                 order to be a successful coach, you must have a passion
sales coaching.                                                   for what you are coaching. You must have a foundation
    So how do you become a successful sales coach?                to build upon, and you must be able to relate to those
Here are 4 areas you can improve.                                 you are coaching.
                                                                      To develop into a successful coach, you need to
#1 Sales Coaches Must Have Experience                             walk the walk and talk the talk. You must understand
A 2016 article published by titled,                   how to sell and have success doing it. If you find
“Ranking all 129 college (football) coaches… as                   yourself in a leadership role over a sales team but have
players”, illustrates that every Division 1 head football         limited sales experience, one of the first things you
coach played the game at least at high school level. All          need is sales experience. But don’t worry, you do not
but 7 played at the college level. The same holds true            have to become an elite salesperson.
for professional sports such as Major League Baseball,                The article points out that of the one hundred and
the NBA and the NHL. This is not just a coincidence               twenty nine D1 Head Football Coaches, less than ten
and it isn’t unique to just the sports world. head football       percent played at the professional level. The message
coach played the game at least at high school level. All          here is that a coach doesn’t need to have been an elite
but 7 played at the college level. The same holds true            contributor to become a great coach. But elite coaches
for professional sports such as Major League Baseball,            were once players.
the NBA and the NHL. This is not just a coincidence
and it isn’t unique to just the sports world.


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Becoming a Great Sales Coach - The Keys to Successful Credit Union Resilience NICK BROWN - Credit Union Business Magazine

#2 Sales Coaches Must Make Time
Coaching is not only an investment of experience in
others, but an investment of time. I often hear sales
leaders tell me that they simply don’t have time to sit
with their teams and provide coaching on a consistent
basis. However, when we sit down and look at where
their time is being invested, we often find a number
of time consuming tasks which can be eliminated or
     As a leader of a sales team, a top priority,
perhaps the top, is to coach and develop staff. With
this perspective, it is easy to see that allowing your
schedule to be dictated by the next fire that needs to
be put out, or solving other people problems, or a full
email box is simply not effective. As a leader you can
start making time by resisting the urge to respond to          #3 Sales Coaches Must Listen
the lower priority tasks which always seem to make the         Imagine a coach who never shows up for games. She
loudest noise.                                                 justifies this by saying she can simply look at the stats
     Next, as a manager and leader you should not be an        and the final score of the game and know exactly where
iatrical part of the day to day operations of your team.       the team needs improvement. If this situation truly
When you are fulfilling operational activities such as         existed, how effective do you think her coaching will
monitoring phone calls, balancing the value and ATM,           be? How will her coaching be received by the team?
making schedules, and so forth, you are consuming              It’s hard to even imagine someone coaching a sports
time which should be spent coaching. Additionally,             team like this, yet it happens all the time on sales teams.
you are depriving your team the opportunity to take on         For many sales leaders the preferred method of
responsibilities and develop into leaders themselves.          coaching is performance based. This means the coach
To make more time for coaching your team, assess               will look at their team’s numbers, including the sales
your day to day functions and delegate as much as              in process, and then discuss what needs to be done to
possible.                                                      correct those numbers. While performance metrics are
     Ideally, a sales leader will make time every day          effective for holding salespeople accountable and to
for coaching.  This would look like official coaching          get a high-level view, they do not tell the whole story.
sessions such as one-on-ones, shadow coaching,                 The majority of sales coaching should be development
and follow-up meetings. In addition, it’s important            based. This kind of coaching can only be done after
for leaders to take time to prepare for coaching and           observing employees’ sales conversations with
training opportunities. Because coaching is a top              members. Listening is also key. Great sales coaches
priority for sales leaders, enough time should be made         will follow-up to review what they have observed with
to effectively lead the team.                                  their team. Rather than jumping in to correct and teach,


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Becoming a Great Sales Coach - The Keys to Successful Credit Union Resilience NICK BROWN - Credit Union Business Magazine

they will ask questions to learn what the salesperson
was thinking and feeling during the member interaction.
After having observed their employee apply what
they have learned in real interactions with members,
and having asked questions to learn more, the coach is
prepared to begin offering guidance.

#4 Sales Coaches Must Be Trainers
Likely, when thinking about an amazing coach in your
life, you thought of someone who empowered you to
become better than you thought was possible. Coaches
lift us up and see in us that we don’t see in ourselves.
In my credit union career, I had two different sales
experiences. My first experience was as a branch
employee. I started as a part time teller. I worked at a
busy branch. The two most important directives were to           With continued coaching from my manager, I learned
move members through the line and be sure to balance             to overcome objections, sell a wide range of products
at the end of the day. You can probably guess where              and services, and even recapture mortgages, of which
my managers invested the bulk of their coaching time.            I was quite leery. Within a few months I was a top
Don’t get me wrong, accuracy and speed are important.            producing agent amongst others who had much more
However, in a short period time I had mastered both,             experience than I. This happened because I was
yet there never seemed to be time for sales coaching.            trained, not just on operation, not just on processes and
My second experience happened 3 years later in the               regulations, but continually on sales.
credit union’s newly formed outbound call center. I                   Hal probably doesn’t understand how much of an
applied for the position and came to the interview with          impact he made in my life. His coaching and belief in
a great attitude and optimism that I could become a              me, the time he spent with our team at practice and
great salesman. The hiring managers must have seen               games, and his interest as me as an individual inspired
something promising in me that lead them to believe              me to be a better soccer player. One day after practice,
I would be great because they hired me on the spot.              I remember Hal talking with my Mom about tryouts for
I remember walking out of the interview wondering                a competition league. I asked, “What is competition
what I had just done.                                            league?”. I don’t remember his exact words, but he
     From day one my manager took responsibility for             turned to me and said something like this, “It’s the next
my development. He taught me the basics of selling               level, and it’s time”.
and gave me the information I needed so I wouldn’t                    As a sales leader you have the opportunity to coach
crash and burn on my first call. Then he handed me the           your team up to that next level, whatever it may be.
phone and told me to make my very first sales call ever.         Just don’t be upset when the time comes for them to
To say the least, I was a bundle of nervous energy. I            move up.
remember he looked at me and said “Nick, I believe     
in you.  You are going to do just fine.”  I made the call        coaches-players/story?id=37518988
and I made the sale.

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Becoming a Great Sales Coach - The Keys to Successful Credit Union Resilience NICK BROWN - Credit Union Business Magazine

                            Nick Brown Consulting, established and founded by Nick Brown in 2015, is a
                            credit union–specific sales training group dedicated to bringing a proactive sales
                            approach to every credit union. Nick Brown Consulting accomplishes this aim
                            by providing sales consulting and training to enhance branch sales, outbound
                            sales and lending center sales. With an emphasis on lending and cross-sales,
                            Nick’s goal is empowering credit unions to add value in the life of every member
                            in every interaction. Engage Nick Brown directly at 801-860-5807 or nick@
                   Ask about his credit union–specific workshops and
                            online sales training, featured at


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Becoming a Great Sales Coach - The Keys to Successful Credit Union Resilience NICK BROWN - Credit Union Business Magazine
BRA NDI NG                                                                                                 BY RANDI MARMER

“Member banking is better banking®”
captures the theme of brand initiative

       n a highly competitive and saturated market,                to quantify how each attribute could impact members
       financial institutions often look for ways to               and the organization.
       distinguish themselves from the competition.                    EBA® Analysis revealed TruMark Financial
       When TruMark Financial® Credit Union, one of                already had a very specific emotional brand advantage
       the strongest, most progressive credit unions in            over competitors that could be used to effectively attract
Southeastern Pennsylvania set out to create a branding             new members. Using this insight, the credit union
initiative, its mission was to do just that --- distinguish        marketing team worked with VDLA and developed a
itself from the competition.                                       new brand positioning, target audience profile, and a
     Founded in 1939, TruMark Financial is                         simple yet powerful brand promise: “Member banking
headquartered in Fort Washington, Pa., and has                     is better banking®.” The advantage the credit union
approximately $2 billion in assets through its 22                  had was it already possessed the emotional brand
branches, Member Service Center, and a suite of                    among its members. The components were already in
innovative online and mobile banking services.                     place. The next step was to design a strategic plan to
Offering a full range of banking, investing, and                   communicate the message through the media and other
insurance services to more than 115,000 members in                 delivery channels.
Southeastern Pennsylvania the credit union receives                The new branding initiative aligns with the credit
high praise from its members on member surveys.                    union’s member-focused philosophy and aims to
     TruMark Financial was performing well, member                 strengthen the credit union’s visibility in Southeastern
satisfaction was high, and the business was growing.               Pennsylvania. Everyone knows membership has its
Despite that, management realized there were so many               privileges and “Member banking is better banking®”
people living within the credit union’s footprint that             captures the theme of the initiative, said Elizabeth
were unaware of the financial services and benefits it             Kaspern, TruMark Financial’s senior vice-president,
offered. The branding initiated presented an opportunity           chief retail services officer.
to heighten awareness.
     TruMark Financial hired branding experts, Van
Deusen & Levitt Associates (VDLA), to conduct
employee interviews, member focus groups, and an
Emotional Brand Analysis® (EBA) – a proprietary
quantitative research technique that uncovers emotional
and rational factors that drive member behavior.
Thirty-two distinct brand attributes were identified and
then measured against actual marketplace performance


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Mom spot                                                         Dad spot

“Consumers that bank with TruMark Financial are                  At every member touch point, TruMark Financial uses
more than customers, they are members,” said Kaspern.            its emotional brand advantage to attract new members,
The frontline staff addresses members by name;                   deepen existing relationships, and inspire employees
they are not just an account number. The branding                to outperform.
initiative communicates what it means to belong to                    The management team realized the employees
a credit union and the benefits that come along with             had to be engaged before rolling out the brand to the
membership. Delivery channels to heighten awareness              public. To create excitement and increase engagement
include television and radio commercials, billboards,            among employees, the marketing team created posters
and an updated easy-to-navigate website. The branding            that were displayed on easels on each floor at its
initiative reaffirms the credit union’s commitment               headquarters as well as in the branch work rooms. One
to its members. Humor and a catchy tune set the                  message said, “Watch for the commercials on April 2.”
commercials apart from the usual financial institutions’         Another said “Member banking is better banking®.”
messages and boast TruMark Financial not only likes              Before long employees found themselves walking
a little competition but offers better products than its         around saying “Member banking is better banking®,”
competitors.                                                     embracing the branding initiative.
     The credit union’s senior management team views                  On April 2, the brand initiative was officially
the branding effort as a way to stand apart from the             introduced. At 6:30 a.m. bright-eyed and full of
competition and better reflect the value the credit union        enthusiasm, the senior management team greeted the
provides to its members. “It’s an opportunity to educate         first employee as she entered the building and offered
consumers about the credit union, its purpose, its               her a sweet treat. Each employee was personally greeted
visionary goals, and the benefits of membership,” said           and the stage was set for the rest of the day. “Member
Richard F. Stipa, TruMark Financial’s chief executive            banking is better banking” resonated throughout the
officer.                                                         building as employees donned their new TruMark
     Working with supervisors and team leaders                   Financial polo shirts with “Member banking is better
at TruMark Financial, VDLA also created a                        banking®” embroidered on the sleeve.
comprehensive brand training curriculum to ensure                     When employees turned on their computers, the
that all employees could easily and consistently live            portal page displayed a graphic with the message, “Our
the new brand promise every day, with every member.              enduring idea: Member banking.” There was a wave of

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250,000 Credit Union Employees
+ 92 Million Members

=   100 Million Miracles

Since 1996, Credit Unions for Kids has raised more than $100 million for Children’s Miracle
Network Hospitals, giving hope and healing to kids in your local community.

 $  10
                      1 iMRI machine and surgical suite

        2             1 Cardiac X-ray machine

$   270
                      1 Ultrasound machine

                     1 Bone marrow transplant

$   100
                     1 Fully-equipped Giraffe OmiBed incubator

                                                         sponsored include a clothing drive for women returning
                                                         to the workplace, a book collection for school-aged
                                                         students, and a food drive for local pantries.
                                                             As the credit union continues to thrive, it’s
                                                         important its members realize “Member banking is
                                                         better banking®” because the member belongs to a
                                                         financial not-for-profit cooperative. TruMark Financial
                                                         continues to grow and has become one of the most
                                                         progressive credit unions in the country where its
End title Please note: Click here to view the television employees live the brand and “Member banking is
commercials:                      better banking® “resonates.

excitement in the air throughout the day as employees
talked about the radio and the television commercials
they heard and saw as they got ready for work that
    To keep the momentum and enthusiasm going,
front-line employees in TruMark Financial’s 22
branches distributed slices of cake decorated with
the message “Member banking is better banking®.”
Members happily shared in the celebration and
expressed their appreciation for the credit union’s
continued commitment.                                        Randi Marmer is the Assistant Vice President
    In conjunction with the branding initiative to           of Public Relations at TruMark Financial®
increase visibility, the credit union continues to           Credit Union in fort Washington, Pa. A seasoned
support its community partners and consumers in              communications and marketing professional, she has
Southeastern Pennsylvania, demonstrating the credit          more than 25 years of experience in the credit union
union philosophy, “People Helping People.” Some of           industry.
the community outreach projects the credit union has


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BRA NC H                                                                                                    BY CHAD DAVIS

Branch Robots and the Hype of
Tomorrow Can Hold Your Credit
Union Back
The raised concerns over a possible downturn in jobs, caused by
robots taking jobs in the branch, has thus far proven to be more hype
than reality. Empty clickbait headlines are the only thing real about
tellers being replaced by robots anytime soon. Instead, people—not
machines—dominate frontline and back-office functions of credit

                any great advancements, available                Some firms encountered unexpected risk and control
                today, serve not as a replacement                issues that have tempered adoption of this technology.
                for the human component, but as an                    Quelling concerns about industry job loss is the
                enhancement. These innovations are               growing realization that financial institutions need not
                highlighted in a new white paper                 choose between embracing technology and supporting
from Kronos, titled, Robots vs. Reality: Innovative              their workforce. As the white paper points out, the
Technology for Today, Not Tomorrow.                              organizations that are likely to do best in the financial
                                                                 services industry are those that successfully combine
Combining people and technology                                  people and technology. The competitive advantage
It’s true that robotic and intelligent process automation        goes to those companies that use their technological
(IPA) is a rapidly advancing field, but relatively few           strengths to empower their people by leveraging
financial institutions have ventured into this form              technology to optimize their workforce, improve the
of technology thus far. According to a recent PwC                customer experience, and ultimately boost their bottom
Financial Services IPA survey, only 9 percent of                 line.
respondents reported having IPA bots in production.
                                                                 Committing to breakthrough advancements
                                                                 Making the financial commitment for breakthrough
                                                                 technologies can be difficult, given how rapidly the
                                                                 tech world advances. It’s like trying to jump on a
                                                                 fast-moving train. Some financial institutions may
                                                                 be tempted to wait for “the next big thing,” but that
                                                                 hesitation imposes an inherent risk in falling behind
                                                                 competitors that have caught the train and are
                                                                 integrating advanced solutions into their organizations

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today. Forward-thinking companies figure out how
to integrate digital innovations into their physical
channels as a way to enhance the customer experience,
deploying cutting-edge technologies that allow them to
gain competitive advantage in their markets.
     Financial institutions looking to upgrade their
technology should begin by creating a flexible
information technology platform. This will help
them shrink development and integration cycles
when implementing new applications or onboarding
third-party services. A flexible platform enhances
the ability to integrate core business systems with an
ever-expanding digital ecosystem using a convenient
software-as-a-service (SaaS) model.
     Using open application programming interfaces
(APIs) allows credit unions to keep pace with the
latest innovations in their quest to create new revenue         respondents view AI as a means to simplify processes
streams and take on the role of disruptor. A robust             and ease their workload.
API and integration platform offers virtually unlimited
extensibility while also simplifying integration.               Any discussion of leading-edge technologies must
                                                                encompass the continuing need for state-of-the-art
Growing capabilities                                            mobile solutions, which are a big factor for today’s
Other up-and-coming technologies hold the promise               on-the-go workforce. Younger workers are especially
to enhance efficiencies and customer service. Artificial        likely to choose their employers based on the quality
intelligence (AI), coupled with machine learning,               and quantity of the mobile tools they offer.
will likely become more important in relatively short                Consumers are likewise on the go, so financial
order. More than half of those responding to PwC’s              institutions need to deliver personalized services
2017 Digital IQ Survey report that they are making              promptly and efficiently. For example, next-generation
substantial investments in AI, and nearly two-thirds            appointment-setting solutions enable customers to
said they will be doing so in the next three years.             book appointments in a matter of seconds, using
     AI includes such capabilities as advanced                  geolocation technology right from their smartphones,
forecasting, proactive labor compliance solutions,              tablets, or computers.
and personal digital consultants to help frontline                   Another major technological innovation is the
managers work smarter and more efficiently. One bit             use of advanced analytics to guide strategic decisions.
of good news about AI, in comparison to robotics, is            Implementing an advanced analytics strategy involves
that financial service employees don’t feel particularly        collecting and crunching data and using the resulting
threatened by it. According to a 2018 Coleman Parkes            insights to build business processes that allow
Research, Automation and New Technology Study                   organizations to improve their operations, enhance
conducted on behalf of Kronos, about two-thirds of              productivity, accelerate growth, and improve risk

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Getting beyond the hype                                                                            Chad Davis is
Advanced technologies in the financial services sector                                             senior industry
are making a difference today, even as the hype swirls                                             marketing manager,
about robots, quantum hardware, and the Internet of                                                Financial Services
Things. These concepts have yet to hit the mainstream,                                             Practice Group,
and it could be years before they reach their full                                                 Kronos, which is
potential. In the meantime, savvy credit unions would                                              a leading provider
do well to focus their technology dollars on solutions        of workforce management and human capital
that are already delivering results. Empowering               management cloud solutions. Kronos’s industry-
managers and employees with flexibility, convenience,         centric workforce applications are purpose-built for
and guided decision making, these commercially                financial institutions of all sizes. Chad can be reached
available solutions can help businesses stay ahead of         at
the competition.


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OPI NIO N                                                                                                 BY GABE KRAJICEK

Why Bank of America’s Fee Hike is
Bad for Communities, Consumers
and the Economy

              ank of America’s recent decision to slap
              a $12 monthly fee on all accounts with
              less than a $1,500 balance is an insult to
              consumers across the nation. The charge
              applies to customers with an “eBanking”
account, which up until recently, was free for anyone
who didn’t receive paper statements or use bank
tellers. Bank of America has now phased out eBanking
and transferred all its customers to “core checking
accounts” that require them to contribute a direct
deposit of at least $250 a month ($3,000 a year) or keep
a minimum daily balance of at least $1,500 to avoid the
$12 fee.
     This greed-driven tactic attacks some of the hardest        needed to force Wells Fargo to restructure its top-level
working and most vulnerable people in the country.               leadership. But interestingly, the megabanks are so
In fact, a new survey suggests that nearly 70 percent            strong that even the Fed Chair didn’t challenge them
of Americans maintain an average checking balance                while still a sitting member of the committee.
of less than $1,000. Making this decision even more                   So it’s not just BofA; it’s not just Wells Fargo.
insulting is the fact that Bank of America is upping             Megabanks do not put consumers first. They are not
fees after having recorded a record-high profit of $5.6          committed to the communities they serve. They are not
billion last year.                                               committed to the customers that bank with them. They
     But it’s not just Bank of America. Over the                 are only committed to the stock price and the profit
past seven years, we have seen megabanks make                    needed to drive it higher.  Now I’m not saying that profit
irresponsible lending decisions, get bailed out by               is bad, but banking is a trust-based business first. There
the government, and then turn around and charge                  has to be a balance between profit and good ethics…
consumers more for services and products. As her                 especially since the five biggest financial institutions
last parting shot, Janet Yellen, the exiting chair of the        currently hold 44% of all the industry assets in the
Federal Reserve board of governors, basically said that          United States according to recent data.
the actions being witnessed at Wells Fargo indicate                   There is a dire need to put a stop to the bad behavior
that there is such top-down lack of management                   of megabanks now, as it severely impacts consumers
oversight that in order to protect consumers, the Fed            and the communities they live in. Unlike megabanks,


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community banks and credit unions are committed                  Last, consumers are more likely to get rewarded for
to their communities, and Bank of America’s blatant              their business rather than penalized, as in the case
disregard for consumer well-being has made this the              with Bank of America or any other megabank. Let’s
perfect time to highlight the stark contrast between             face it, this concept is just too consumer-friendly for
the consumer-friendly policies of credit unions and              megabanks’ taste. In general, community banks offer
community banks compared to the predatory practices              lower fees than big banks, with 63 percent offering
of the big banks.                                                free checking. They also have lower overdraft fees,
                                                                 and some community banks are even reimbursing
Here are just a handful of advantages:                           several, if not all, surcharges at out-of-network ATMs.
First, community banking is an investment in that                Additionally, studies show that community financial
community. Studies show that small banks actually                institutions also offer, on average, better interest rates
make up 54 percent of small business lending. And as             on savings and better terms on credit cards and other
we all know, small businesses are critical to driving            loans.
innovation, creating thriving local economies and                     In contrast, the kind of behavior we’ve seen from
significantly reducing wealth inequality.                        megabanks time and time again is unacceptable,
    Second, consumers get better service, plain and              and we – as a collective industry – need to send a
simple. Sixty-four percent of people surveyed in the             message that the blatant abuse of power just won’t be
Consumer Banking Insights Study believe community                tolerated. These banks have a long-standing history of
banks and credit unions provide better personal service          consistently acting in their own self-interest regardless
in any kind of interaction — be it face-to-face, over the        of the impact on account holders or the economy at
phone, or online — than big national banks.                      large. If you are an investor, they are in your corner. If


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not, then they really seem to care less about your well-
     There is a petition in response to BofA’s fee hike,
and it is getting some traction. But it won’t work, as
we’ve seen from the past, because BofA will ignore it
long enough to outlast the consumer distaste for their
actions. You can see the petition for yourself at www. It’s time to send a real message. We must
hold our financial partners to a higher standard – and
                                                                   Gabe Krajicek is Chief Executive Officer of Kasasa,
that standard has to indicate that consumers have the
                                                                   an award-winning financial technology and
right to expect a fair exchange. When a consumer trusts
                                                                   marketing technology provider. For more information
a financial institution with their income and savings,
                                                                   on Kasasa, visit, or visit them on
that institution should honor them by respecting how
                                                                   Twitter @Kasasa, @KasasaNews, Facebook, or
hard it is to earn every nickel that goes into the account.

It is time to take back banking.

                              " Click on iPad to watch cartoon"

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PEOP LE, P RO CE S S                                                                                  BY GENE FREDRIKSEN

The Keys to Successful Credit Union

               chieving a successful cyber security
               function at any organization is made up
               of the proper combination of elements
               that must work in concert to mitigate
               organizational risks and ultimately
protect the information entrusted to us. These elements
are People, Process and Technology.
     Reaching that balance is not easy, but it is critical
to the success of the organization as it impacts financial
planning and product direction. We must not only
understand the business needs and environment of the
organization, but also the emerging threats facing the
industry.                                                         must be highly available, agile and quickly deliverable,
     As the credit union industry matures, regulators             which requires a balanced approach of People, Process
like the National Credit Union Administration (NCUA)              and Technology controls, tied to and commensurate
are coming to the realization that just being safe is             with business risk. A robust process that adjusts
not enough to serve members. A couple of years ago,               controls as business risk changes will help establish
the Department of Homeland Security introduced the                a strong defense program for an organization. When
concept of resilience. Resilience can be defined as               the program is constantly evaluated against business
the ability of a business to not just survive but also            risk and emerging technical threats, the program will
to thrive in a rapidly changing or potentially caustic            remain strong. As always, there are no guarantees
environment. It describes the state of an operation               against a breach, but the best defense is a strategic,
wherein members have secure access to the right data,             balanced program.
delivered to the right place, when the member needs it.               While this is all well and good in theory, when
It encompasses much more than the traditional view of             funding and head count are at a premium, what are the
cyber security.                                                   ways an organization can positively affect the People,
     The speed of new threats is increasing, and the              Processes and Technologies in place to support the
potential impact of a single piece of malware continues           protection programs?
to grow, which is why the NCUA and other regulators               People: Continually train all employees through:
are focusing on resilience. As the pace of threats                    •   Electronic learning
moves more quickly and members expect more from                       •   Instructor-led training
our digital tools, security technology must be agile, not             •   Department meetings
static as in years past. The security systems of today                •   Email security reminders


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The watchword for the People area is “culture.” When              operations team, allowing it to focus on infrastructure
people know what to do and they view it as their                  enhancements to improve uptime and resilience.
personal responsibility, a culture of security is taking               The credit union culture is built on member service
root. Just as with any training, continual messaging              excellence that differentiates us in the financial services
and reinforcement are critical.                                   sector. Internally, the focus on resilience and your
Process: Continually enhance security to address                  People, Processes and Technologies will drive greater
evolving threats.                                                 member satisfaction and trust. Externally, successes in
    • Security should be designed with a focus                    these areas will result in greater public trust and give
        on segregation of duties across all critical              us the opportunity to grow our organizations. PSCU’s
        areas, not just to thwart fraud but also to help          highly available and secure processes are built to
        prevent accidental damage or destruction of               enable the success of credit union resiliency efforts for
        information assets.                                       nearly 900 Owner credit unions. This partnership is not
    • Focus on processes to implement critical                    just good for individual credit unions; it is critical to
        security patches and updates to make systems              the success of the credit union industry as a whole.
        more resistant to compromise. Patches and
        updates are a fact of life. Missing an update                                          Gene Fredriksen is
        can open the door to a hacker, which is                                                responsible for several
        exactly what happened in the case of the                                               strategic functions
        Equifax breach.                                                                        primarily focused
Technology: Many security product vendors would                                                on relating PSCU’s
have you believe technology can keep you safe.                                                 perspective and stance on
Every time a new threat or vulnerability emerges,                                              cyber security to existing
new products also emerge targeted at mitigating the                                            clients, prospective
risk. Implement security technology to facilitate the                                          clients, consultants and
enforcement of required security protocols.                       the industry as a whole. Gene has over 25 years of
     • Select tools that fit into the security                    information technology experience, with the past
          architecture, avoiding standalone systems and           20 focused specifically in the area of information
          point solutions wherever possible.                      security. He joined PSCU in 2013. Since then, he
     • Leverage security data to identify risks.                  has grown the Information Security and Compliance
     • Recognize active threats using data and                    teams and service offerings, implemented advanced
          analytical information.                                 tools and processes, and advanced PSCU’s
As an industry, we have chosen to pursue an e-business            relationship with numerous partners. Gene has served
and mobile strategy. In a highly competitive e-business           on the R&D committee for the Financial Services
environment, resilience is key. These new tools allow             Sector Steering Committee of the Department of
our members to access their information 24 hours                  Homeland Security and is a Distinguished Fellow for
a day, even in times of natural disasters. It takes an            the Global Institute for Cybersecurity + Research,
organization leveraging all three areas of People,                headquartered at the Kennedy Space Center. He
Process and Technology to achieve resilience while                is also the Executive Director for the National
improving operational capabilities. Well-designed,                Credit Union Information Sharing and Analysis
resilient solutions will also reduce daily “noise” for the        Organization.

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PAYMENTS                                                                                                 BY CYNDIE MARTINI

In 2018, Credit Unions Need to Meet
Their Members Where They Are

              redit unions are fundamentally different
              from most other financial institutions.
              For many years, they have served the
              unique role of serving local communities,
              returning profits to members, offering
competitive loans and financial products, and
supporting local businesses, non-profit institutions and
community asset development.
     Times have been good for credit unions. There
has been widespread growth against banks, as new
generations have grown to distrust the banking
industry. At the same time, there is a growing trend
among consumers, particularly millennials, to
support companies that have strong corporate social              Currently, the entire financial services industry is
responsibility programs, an area where credit unions,            facing a new type of consumer, one that grew up with
with their strong support of local communities, are              technology and views its relationship with managing
clearly in line with consumer desires.                           money as an online affair. Make no mistake, this is a
     Most importantly, credit unions have always                 radical change.
offered superior customer service. In an age when                     Millennials, the largest demographic of consumers
customer service has largely disappeared from                    since the baby boom, have a completely different
American commerce, credit unions stand alone in their            relationship with their bank or credit union. In short,
ability to treat members with respect.                           their loyalty is to their debit card, credit card or mobile
     However, in 2018, credit unions are facing a                app. This demographic rarely enters the bank branch.
critical crossroads between changing demographics,               And that’s a problem for credit unions. It’s also an
rapidly evolving technological innovations, and the              opportunity.
traditional mandate that credit unions must serve their               The problem is credit unions in the small to
local communities. The collision of these issues, and            medium size range likely find it hard to have a robust
the tension they create, will continue to challenge              card service. Keeping up with radical changes in debit
credit union leadership and growth potential.                    and credit card technology, and digital issuance, is
     As is always true in any changing times, those              expensive. Servicing those cards with 24/7 support,
credit unions that find ways to evolve in parallel to new        issuance, and troubleshooting, requires more staff.
developments and technologies will be the ones that              These increases in operational expenditures take away
survive and thrive.                                              funds from the credit union’s mandate to serve local

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Understand Your Market
                                       Our Venture. Your Gain.

Member Insight: Advanced Analytics Reporting Tools
Uncover a wealth of knowledge in your data with easy,
point-and-click, ad-hoc reporting. Member Insight solutions
empower credit unions with actionable intelligence that
drives cardholder engagement, satisfaction, and retention.


However, keeping up with those changes is not
negotiable if a credit union wants to remain competitive
and relevant. It is imperative to have strong debit,
credit and digital card services.
    In the past, credit unions have taken one of two
roads when it came to card services. They either didn’t
offer a credit card, or they passed off the credit card
servicing to a national brand.
    I have spent nearly 30 years in the credit union
industry. I have seen these two mistakes far too often.
And I have seen potential revenue and member growth
walk out the door.

The irony is that credit unions used to be the leaders           loyal to the card, not the credit union, credit unions are
in card services, and in some ways still are. Since              open to changing.
most credit unions had fewer branches than national                   It’s my belief that credit unions would be very wise
banks, credit union debit cards had to work harder than          to fully reconsider their relationship with debit cards,
debit cards. Credit unions pioneered the surcharge-free          credit cards and digital transactions. If credit unions
option at the ATM. In fact, surcharge-free ATM use is            can do that, then they are open to new opportunities.
still a prime mover of credit union membership.                       With a strong card service program, credit unions
      Right now, card service is the most important              will be adding a new, important source of revenue,
touch point credit unions have with members. That                which can be used to enhance community-focused
relationship can’t be underestimated. If members                 programs. They will attract new members, even
increasingly become loyal to a card, or an app, then             members from outside their local service area, since
that relationship must be managed with the same care,            new members often search for the best deals and
compassion and service that the member at the teller             service online. And credit unions will be recapturing
window.                                                          control of the relationship with the member, ensuring
      If a credit union cedes its card servicing to a            that customer service, the traditional hallmark of credit
national brand, the danger to member loyalty is                  unions, remains at a level that inspires brand loyalty.
immense. Since national brands service thousands of                   Changing times call for changing strategies. If
financial institutions, it’s almost certain that a credit        credit unions want to evolve and maintain relevance,
union member isn’t getting great customer service.               they must focus on what made them unique in the first
      Nearly everyone who has dealt with a credit card           place, focusing on community and being dedicated to
company on the phone, painfully navigating endless               member service.
phone trees, can see the problem for the credit unions.               Consider ways to bring stronger card services to
Your brand and your member are out of your hands.                your credit union. If you bring it in house, make sure
You, the credit union CEO, are relying on someone                that it is properly staffed. If you choose an outside
else’s customer service. In the most important                   vendor to run your card member services, make sure
transaction with a huge part of your membership, you             they have knowledge of the credit union space and are
have dealt yourself out. And with a new generation               focused on the unique needs of credit unions.

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                                                             Understand Your Market
                                                             Our Venture. Your Gain.
        Take advantage of the credit union’s ability to tailor                   Cyndie Martini is
        credit card reward programs specifically for credit                                              the President and
        union members, including everything from bumps in                                                CEO of Member
        CD rates to donations to local arts programs, or reward                                          Access Pacific, the
        programs that huge national bands can’t or won’t make.                                           largest aggregator
             I’m not advocating a radical change. I’m suggesting                                         of card services for
        that credit unions recognize the needs of a changing                                             credit unions. She
        demographic. If the new or future member wishes to                                               has managed and
        use a smart phone to access their account, then the                                              directed successful
        credit union needs to meet them where they are and                                               credit union card and
        want to be.                                                     ATM portfolios, marketing programs and business
             Times are changing, but human connections are              strategies for nearly 30 years. In 1999, Martini
        only getting more meaningful. Credit unions have                spearheaded Member Access Pacific’s entry into
        thrived for years by being dedicated to customer                the card payment and ATM processing arena - the
        service and community development. Now, it’s time               first and only credit union league (Washington
        to adapt those same values to the new technologies and          Credit Union League) nationally to resell Visa Debit
        new touch points favored by new generations.                    Processing Services (DPS) as a “collectively” priced
                                                                        card processing solution. Martini has propelled
                                                                        this business model into one of the nation’s leading
                                                                        CUSOs while fostering MAP’s relationship with Visa,
                                                                        Inc. into a premier

ed Analytics Reporting Tools
dge in your data with easy,
              Member Insight: Advanced Analytics Reporting Tools
ting. Member Insight
          Uncover    solutions
                  a wealth of knowledge in your data with easy,
actionable intelligence
                             ad-hoc reporting. Member Insight solutions
nt, satisfaction, and credit unions with actionable intelligence that
              drives cardholder engagement, satisfaction, and retention.
o learn more.



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CFO C U RRENCY                                                                           BY ALEC HOLLIS AND MICHAEL ORAVETZ

The Evolution of Fintech and Alm
As financial technology continues to evolve, the need for credit
unions to remain competitive grows by the day. While the unknown
is potentially frightening, adoption of financial technology solutions
can be a successful way to enhance member experience and improve


            inancial technology, or FinTech, is nothing new to depository institutions. While the buzzword
            “FinTech” may have recently become popular, financial technology has been on the minds of
            depositories for over 50 years. In fact, a 1962 Federal Reserve bulletin details the growing popularity
            of computer-aided automation and related 3rd party services at commercial banks. At the time, almost
            half of all banks surveyed reported planned or existing electronic accounting systems, in contrast to
traditional, more laborious processes. “The more things change, the more they stay the same” the saying goes;
today is no different as institutions seek to replace traditional processes with more customer-friendly, efficient
ones. The EFMA, or European Financial Management Association, estimates there are nearly 12,000 FinTech
companies worldwide comprising 18 segments of the financial industry. Until recently, smaller community
banks and credit unions have been left out of the party, as many FinTech companies focused on large and
regional banking partnerships.

Figure 1: The FinTech Universe
                                             FinTech Products
Sector               White Label                     Gold Label                        Direct
                     -Offered to Institutions end-   -Mix of Direct and While Label    -Offered unrelated to
                     users                                                             institution
                     -Technology developed           -Recognized brands                -End users entrust service
                     by FinTech provider, but        people seek out, married to       directly, understand
                     branded under institution       institutions brand of trust and   institution is not involved
Example              CUSO                            Kasasa or ApplePay                PayPal or Venmo

The benefits associated with technological innovation are vast, but many institutions are not prepared to fully
embrace the advantages. According to a 2017 KPMG survey of 160 institutions across the globe, only 46% of
respondents believed their institution had a clear FinTech strategy in place, and 10% indicated that they had
no strategy at all.  Ultimately, institutions with a defined plan will be better prepared to separate themselves
amongst the pack and stand to benefit now, and in the future. In many instances, these benefits are closely linked
to one another – let’s examine.

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Benefits                                                           quality, and transparency are at the top of the
  • Enhanced Member Experience                                     priority list for many millennials, who like the
    — Perhaps the most intuitive improvement                       idea of having several service channels.
    FinTech can provide is to member services.
                                                                 — Credit unions should prioritize around their
    Whether it be through online or mobile banking
                                                                   members, rather than individual products or
    enhancements such as electronic wallets or mobile
                                                                   channels. Ease of use, convenience, and an
    payment solutions, credit unions must have the
                                                                   overall good experience are very important, and
    ability to meet the ever-changing needs of the
                                                                   they can help drive a competitive advantage.

    — A digital presence is becoming important               • Improved Cost Control
     for lenders to adequately compete across all              — The value chain is rapidly changing for many
     product categories. Unlimited access, service               institutions, including credit unions. Delivering


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                                                            Risk and Strategy
                                                            While modernization can provide many benefits, the
                                                            need to understand and manage the potential trade-
                                                            offs should be incorporated into the credit union’s
                                                            enterprise risk management plan. Below are issues to

                                                              • Third-party Risk Management
                                                                — In the Fall 2017 Semi-annual Risk Prospective
                                                                  published by the Office of the Comptroller
                                                                  of the Currency (OCC), third party risk
                                                                  management remains top-of-mind. Depositories
                                                                  are becoming increasingly reliant on third party
                                                                  service providers to support key operations.
      services more cost effectively and improving                Consolidation amongst providers within the
      back-office efficiency can reduce bloated cost              financial services industry continues to worsen
      structures and add to the bottom line.                      the problem.

   — Non-physical channels can help streamline and              — This means that an increasingly smaller group
     improve operations. Often a vast branch network              is providing critical operations, which could
     is costly to maintain, whereas maintenance of                create concentrated points of failure and
     online channels can be more cost effective.                  potentially create systemic risk within the
                                                                  financial services industry.
 • Improved/Expanded Capabilities
   — Improving or expanding the institutions                  • Strategy and Integration
     capabilities is an additional benefit commonly             — As we’ve already touched on, many institutions,
     associated with the implementation of FinTech                 including credit unions, do not have a defined
     solutions. For example, online loan and deposit               technology strategy. While there is not a
     origination can allow credit unions to reach                  proverbial “once size fits all” strategy, the
     untapped markets and expand product lines.                    following can help in assessing the need for
                                                                   direct investment or partnership:
   — On the lending side, online portals can now                •    Strategic initiatives and objectives of the
     efficiently sift through loan applications                      technology
     based on pre-arranged credit criteria, reducing
     underwriting costs and decision time. Deposit              •    Understand current operations and business
     gathering functions can also be improved by                     cycles
     increasing website traffic, allowing for more              •    Determine level of institution-wide adoption
     effective deposit targeting based on certain
     member specifications.


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