18.5 hcul bring your digital lending into the endzone (1)

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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!

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Cortney AngeleyImpact [email protected]

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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.

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THINK.

H ow W e W orkA B O U T F I LE N E


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!


ALW AY S LOOKI NG TO THE FUTURE …

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“Progress is the constant replacing of the best there is with something still better.”

– ED F ILENE


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W HY DO E S E AS E M AT T E R?


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R emember W hen?


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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 ?


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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!


• #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 ?

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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


T h e Exp erien ce M at t ers

1 2 Dig i ta l Len d in g

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L E T ’ S RE F L E CT


→ When has a poor service experience changed where you do business?

The F ilene M et hod


The F ilene M et hod

In sig h t s Go al


Identify a problem to solve through the collections of data points.

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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?




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N et nography



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Ideat ion Goal


Find as many solutions to your stated problem as possible, and identify those

worth exploring further.

Ideas � Action

D ebt D ragon


Ideas � Action

QC ash


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Filene collected data from 5,247 members across 16 credit unions to examine member experiences across 1 of 4 contexts…


Pred ict in g L o yalt y


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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


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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



W h o D o es it B est ?

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D ominos Pizza!


St arbucks!

D ecreasin g t h e H assle


• 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

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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



ARE Y OU MAKI NG THE R I GHT MOV ES?


1. Attitude is Everything

2. Know What’s Important

3. Frictionless Lending

4. Human vs. Digital Touch

5. Integration

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� 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”?



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?

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�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



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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?


“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


�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


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)?

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�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


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


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)

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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?


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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

[email protected]

18.5 hcul bring your digital lending into the endzone (1)

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