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CO-OP Financial Services Blog: Insight Vault

May 13

What Did You THINK?

THINK CONFERENCE / by

GENERAL, THINK CONFERENCE / By Bill Prichard Manager, Public Relations and Corporate Communications

A week after THINK 13 came to a close, we’re still thinking about what we learned. Among the new features at this year’s conference was live audience polling. Through a dedicated THINK 13 app and an online polling site, THINKers registered their opinions about change and disruption – giving us not only a temperature reading on how THINKers feel about change in general, but also how those feelings changed throughout the conference.

The big takeaway: THINKers are all about change. A full 80 percent of poll respondents believed the following statement to be true: “The tidal wave is on its way. Credit unions must respond to disruptive change with disruptive changes.” Similarly, 77 percent said credit unions need more disruptive change: “Disrupt or be disrupted” was how they voted. In the same poll, fewer than 7 percent thought credit unions did not need to embrace disruption (and instead should focus on what they do well); about 16 percent took the middle ground, saying credit unions should “respond to change as it happens.”

 

 

 

 

 

These are big votes for big change, and even we were surprised by the intensity of the results. We’re also curious: Are THINKers representative of the credit union movement? Or are THINKers more game for change than the average credit union leader?

Throughout THINK 13, thoughtful ideas and fresh approaches to change took the stage. In past conferences, we’ve focused on creativity – on finding inspiration and new ideas. This time we shifted that focus slightly and took a closer look at execution and turning ideas into reality. Our polling seemed to validate that shift. Given the opportunity to choose three top impediments to change, poll respondents said “fear” most often (at 28 percent), followed by “resources” (21 percent) and “risk” (17 percent). Only 3 percent of voters cited “lack of ideas” as a barrier to change.

THINKers aren’t short on inspiration. Only 4 percent thought defaulting to the status quo was a primary change issue facing credit unions. The top three responses to our polling question about how credit unions need to change:

  1. Credit unions have an amazing story. Let’s tell it. (35 percent)
  2. Our story is great. We need new ways to connect. (31 percent)
  3. We need a new story. It’s time for a breakthrough. (30 percent)

THINKers began the conference with a bias toward change. Our first poll, on Day 1, showed 24 percent were for massive change, 28 percent for measured change and nearly 48 percent thought credit unions need a little of both. By the end of the conference, massive changers represented nearly 30 percent of voters, with measured changers clocking in at 17 percent and “a little of both” representing a majority at 52 percent.

 

 

 

 

 

 

 

 

The takeaway? THINKers are primed for change. They want to know how to find the resources and manage the risk, so that fear is less of a factor. They want new stories to tell and new ways to tell their stories. They want to carry the spirit of change forward into the months to come, so that they’re better equipped to meet the challenges of a rapidly-evolving world – or maybe even to push that evolution in new directions.

For the THINKers here at CO-OP, the challenge now is to keep finding new ways to help credit unions live up to that spirit throughout the year. If you’re ready to keep THINKing, check out this series of leadership webinars, brought to you by CO-OP and the brilliant THINKers at Mitchell, Stankovic & Associates (maybe you caught their Industry Impact Session on “Hunger Games Leadership” or Dr. Brandi Stankovic’s smart turn as an expert in the Disruption Challenge at THINK 13). Look for expanded coverage on the debate between massive and measured change in THINK Magazine (click here to sign up).

And get ready for THINK 14 – in fact, you can register for the Insider Rate of $199 through August 31 at www.co-opthink.org. Like change and the need for disruptive thinking in the credit union movement, it’s coming.

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May 2

How Massive Was It?

General, THINK CONFERENCE / by Manager, Public Relations and Corporate Communications

Disruption was in the air this morning at THINK 13. In the first ever Disruption Challenge, two teams faced each other on the question of what kind of change credit unions need: massive or measured.

This has been a recurring theme at THINK 13 – the tension between massive change and measured change. Are credit unions like Dunkin’ Donuts once was – solid but looking for new iterations, appealing menu items and better branding? Or are we like Blockbuster, gleefully stocking our shelves with DVDs and microwave popcorn while Netflix gets ready to swoop in?

Michael Bell, an attorney for law firm Howard & Howard, began the case for massive change. “One hundred and four years ago, our industry began with one massive change,” he said. Since then, the cooperative movement has accommodated many major changes: consumer lending, indirect auto loans, home loans and business lending. Bell himself was part of a court case involving the 2011 purchase of a bank by a credit union. “That’s massive change,” he argued. “How can effective change be measured? It has to be massive.”

Patrick Basler, President of First Financial Credit Union in Chicago, continued: “What if we were faced with an issue that completely changed our industry? What happens if smartphones replace debit cards for payments? If I no longer had debit card income at my credit union, that would be a massive change.” Credit unions need to be more proactive in addressing change, Basler argued, because the nature of business itself has become more volatile.

In rebuttal, Credit Union Journal publisher Frank Diekmann called measured change “the intelligent and pragmatic” form of change. “You don’t have to look far for examples of it,” he said. “All you have to do is look around the room and you’ll see example after example after example. Each one of you is a representative of the benefits of measured change.” How so? Read the headlines: trillions of dollars in assets and millions in member growth – all the result of evolving service and technology while staying true to core values. “The more massive the change we face, the more resonant the idea of a financial co-op,” Diekmann concluded.

Then the feathers flew.

In more than an hour of solid debate, our panels and experts let fly with a range of ideas and opinions about technology, our business model, the member experience and more. THINK Magazine will be covering our debate in greater detail in the weeks to come. But for now, a few thoughts:

  •  “Credit unions should stop taking an affirmative action approach to younger members. Don’t do unto others what you would do unto yourself. Do unto me what I would like done.” – Dr. Brandi Stankovic, Mitchell, Stankovic & Associates
  • “We have a business model that will stand up. As credit unions focus increasing attention on change, the danger is that credit unions could become nice banks.” – Chip Filson, Callahan & Associates
  • “There’s an active debate about the importance of branches. One side says branches are dead and it’s all about the multichannel experience with online and mobile. The other side says it’s all about building that relationship. Really, it’s a combination. Multichannel doesn’t take the place of face to face. And it all goes back to the cooperative model.” – Mollie Bell, Filene Research Institute

Team Measured members Jill Nowacki of MAPS Credit Union and Sandra Scott of Patelco Credit Union made a case for organic innovation, pointing out that mobile shared branching (with CO-OP Sprig) and remote deposit capture are two examples of popular, groundbreaking technology that grew out of organic need. The result: successful products with a built-in market.

But Team Massive member Sarah Snell Cooke, publisher and editor-in-chief of Credit Union Times, pointed out, “After 100 years in business, credit unions have a 6 percent share of the market. If we really treated people as member-owners, wouldn’t the market share be greater?” And doesn’t that suggest room for a more massive approach?

In the end, the audience gave the day to Team Massive by a margin of 57 percent to 43 percent. But an audience poll taken earlier in the Challenge may have revealed a wider truth: When given an additional option for what kind of change credit unions need, a broad majority of voters chose “a little of both.”

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May 1

Unlikely Candidates

General, THINK CONFERENCE / by Manager, Public Relations and Corporate Communications

Sometimes it is hard to visualize the change you wish to see in your organization. In your industry. In yourself. Instead you see the roadblocks: The regulators are coming. No one’s sociable on your social media channel. You don’t have an e-wallet and, if you’re honest, you don’t really know what that is.

But this morning at THINK 13, we saw change come to life. In electrifying presentations by Newark, N.J., mayor Cory Booker and singer/Google+ pioneer Daria Musk, we learned how two unlikely candidates came to lead their respective fields – not by knocking on the doors of power, but by blowing those doors off.

Cory Booker doesn’t look like most politicians – and it’s not just because he doesn’t appear to be animatronic. Booker is doing things most politicians aren’t doing. Like what? Like, once when he was frustrated by not knowing what to do to help residents of a local housing project, he took this unusual step: “I called a friend and said, ‘Get me a tent.’ And we walked down to the projects and we set up this tent,” Booker recalls. He tracked down the woman who had contacted him about problems in her neighborhood and said, “Look, I don’t know what to do about your problems, but I’m here and I’ll tell you what: I’m going to live in that tent until we figure out what to do.’”

Booker went on a hunger strike. He called a press conference to talk about the problems the residents were having. He was inside his tent when security guards from a nearby prison showed up. They saw him on TV and wanted to stand with him so he wouldn’t be hurt. Soon, there were ministers. Health care workers came and offered free screenings. Students volunteered. Businesses came out. Prayer circles formed.

“I saw my nation turned out,” Booker says. “We all held hands in this circle and we prayed,” in many languages, representing many beliefs. “It was a chorus of our community, and I was reminded of an old saying: ‘If you want to go fast, go alone. If you want to go far, go together.’”

Booker’s tenure as mayor hasn’t been without its growing pains. But, importantly, those growing pains have come with growth. He calls himself the product of “the disruptive force of love,” a child of parents who believed you could change reality with love, kindness and decency.

Which makes Booker a little like Daria Musk. She is the daughter of a rock musician and a classical flautist. She has always loved music but didn’t love the schlepping and futility of the young musician’s life. So in 2011, on a tip from her big brother, she checked out a new video chat service called Google+ Hangouts. It wasn’t made for musicians, but Musk decided to try it out. She had nothing to lose.

What she gained was a global audience – instantly. “The first time I heard global applause from the first Google+ audience, I laughed and cried all at the same time,” Musk recalls. That first audience helped drum up a group of 9,000 people in 100 countries for Musk’s second hangout. By her third one, she had 200,000 people listening around the world.

Since then, she’s racked up a Google+ following of 2.3 million. She’s played at SXSW and the GRAMMYs and has appeared on/in Billboard, Rolling Stone, Entertainment Tonight and Good Morning America. She’s the successful musician she aspired to be – and, strangely, she also embodies the power of Google+ Hangouts, even though this service wasn’t originally designed for musicians at all.

As Musk grabbed her guitar and fired up Google+ Hangouts this morning, faces appeared on the THINK 13 video screens. Folks from Norway and Britain were “ready to rock,” as inspired to hear Musk’s soaring voice over the Internet as the THINKers were to hear it live.

She sang about being moved, about gratitude. When she got the chance to sit down next to Booker during THINK It Out, she called the moment “ridiculous” (translation: great) and offered to sing at Booker’s presidential inauguration. She also urged credit unions to spread their message to people of her generation. “The way banks are doing things isn’t serving people my age,” she says. “You’re the cool kids on the block.”

Booker agreed. Back in law school, he and some colleagues even looked into starting their own credit union.

There’s an old story about a man going to visit the zoo for the first time. Upon seeing the giraffe, he said, “There ain’t no such animal.” Sometimes even seeing is hard to believe. A political rising star who connects directly with people? A DIY rockstar who thinks credit unions are cool? Stranger things have happened.

Maybe they’ll happen for you.

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Apr 30

THINK 13: Day of the Ducks

General, THINK CONFERENCE / by Manager, Public Relations and Corporate Communications

On the first day of general sessions at THINK 13, we learned many important things. Most surprising: Credit union leaders are pretty good at making ducks. As part of a presentation by innovation expert and Wharton School professor David Robertson, 250 THINKers used one minute and six LEGO pieces to assemble their best ducks. While you might expect paralysis or despair, what we got was 250 pretty good ducks. O.K., some were a little “impaired.” A few didn’t look exactly like ducks. But, hey, given a difficult task and no blueprint, ordinary inexpert duck makers made 250 unique quackers on a tight deadline. We’re going to call that a win.

Robertson was quick to concede that his directive had tough constraints – only six pieces and 60 seconds. But he noted that plenty of innovation occurred in spite of these challenges. “If I had given you more pieces or more time, you might not have had better results,” he reasoned.

You learn something new every day. But if you’re at THINK 13, you’ll learn more than one thing. CO-OP President and CEO Stan Hollen opened the day with news on how CO-OP is changing to meet the needs of a changing market – including a diverse and industry-leading product line and new branding for its shared branching network (now called CO-OP Shared Branch). CUNA President and CEO Bill Cheney shared CUNA’s vision for a credit union breakthrough: 50 million PFI members and $20 billion in annual benefits to members by 2023.

CO-OP Vice President of Marketing Samantha Paxson and Executive Vice President, Markets and Strategy Caroline Willard kicked off the debate over massive versus measured change – and deep dish versus thin crust pizza – along with the promise of more debate to come.

Scott Belsky, author of “Making Ideas Happen” and founder of Behance, walked us through a host of great, usable ideas for generating and executing ideas. Dunkin’ Brands CMO John Costello shared his branding expertise (with a background that includes Proctor and Gamble, Home Depot and Sears). When he wasn’t forcing people to play with LEGO, David Robertson gave a thought-provoking presentation on the value of controlled innovation. And Nicole Clemens, Senior Vice President of Series Development for FX, chronicled the network’s “transgressive, aggressive” rise to prominence.

The common theme? Change is here. It’s happening. And maybe it’s more manageable than we think. In two THINK It Out sessions that included Shazia Manus of The Members Group and Rita Ramirez of MasterCard, our speakers shared their belief that new – even revolutionary – thinking is well within the grasp of credit unions. In fact, says Ramirez, partner companies are already innovating on your behalf: “There are a lot of partners in the marketplace that you can work with. You don’t necessarily have to reinvent the wheel.”

Though there were too many good ideas to share in one blog post, here are a few random thoughts to carry into tomorrow:

  • “Credit unions tend to get things right, but we’re not out in front. Now, people want innovation in service.” – Bill Cheney
  • “Gain confidence from doubt. If everyone thinks you’re crazy, you’re either crazy or you’re really onto something.” – Scott Belsky
  • “Avoid the curse of incrementalism. There are great services and great brands, and very few of those became great by improving themselves by 2 percent.” – John Costello
  • “An innovation culture is not about creativity, but about creativity and profit.” – David Robertson
  • “Most decisions are ‘yes,’ ‘no’ or ‘need more information.’ If it’s anything else, it’s in your head.”  – Nicole Clemens

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Apr 29

Launch Day at THINK 13

General / by Manager, Public Relations and Corporate Communications

THINK 13 powered up today in sunny Chicago with 12 industry sessions designed to get credit union leaders thinking in new directions. Topics ranged from payment trends and EMV to loyalty programs and cause partnerships – each with an eye toward helping THINK participants disrupt the status quo and uncover fresh insights.

Chris Gill, Senior Director at Diebold, Incorporated, covered a host of existing and emerging technologies in “Leveraging Branch Automation to Enhance Operational Efficiency and the Member Experience.” The big takeaway: Don’t view efficiency and member experience as an either/or. The best new ideas make the member experience better, quicker, simpler, more fun and more profitable.

  • What if your members could take a picture of a bill, upload it to online banking and have that information automatically added to their online bill pay?
  • What if members could press a button and activate a two-way video chat at the ATM?
  • What if your ATM was more Millennial-friendly, with scroll wheels or card-less transactions members could pre-stage at home?

Encouraging automated transactions will ultimately save credit unions money. But even relatively un-flashy technologies like cash dispensers or recyclers offer a benefit. When tellers don’t have to count bills, they have more heads-up time to connect with members (to say nothing of the improved accuracy with automated cash).

Gill says credit unions need a multi-phased approach to launching branch automation successfully. Deploy wisely, using demographics to choose areas most likely to be receptive. Engage employees, so that they help members transition to using technology – and don’t undermine your efforts. Create a member adoption strategy that includes marketing, merchandising and member communication. Write processes and policies that integrate automated services into your operations. And finally, take the time to do the measurement and monitoring that will drive (and demonstrate) your success.

Business continuity and “cloud” expert Kirk Drake, CEO of Ongoing Operations, delivered a similarly bold vision for the future in “Delivery Channels Converge: Moving Production and Delivery Channels Securely into the Cloud.” As he tracked the evolution of the earliest telephone into the smartphones we carry today, he noted the convergence of many disparate channels. Remember the earliest video cameras? How about Internet that took a fleet of prehistoric-looking devices connected by cables – at connections speeds of slightly slower than molasses? What about the beginnings of voicemail? Email? Internet browsing? Now, all of these “innovations,” each of which took generations to evolve, are contained in a single device.

Note for credit unions: Members expect the same “convergence” from your credit union. That is to say, they don’t want to be authenticated one way online and another way at the branch. They don’t want to hear that you can’t offer fast, integrated access, right now.

Drake urges credit unions to take a fresh look at their operations – and their strategy. “At Ongoing Operations, we say that we want a new product to be useful for 18 months. Then we expect it to be obsolete,” says Drake. You might not throw out every new product after 18 months, Drake adds, but this perspective might free you from over thinking every initiative. “If you start looking at [new products] that way, your whole approach changes. Google launches 20 to 30 new initiatives a year. The key is that they kill off the ones that aren’t working.”

Can you generate the kind of change that’s required in this environment? That question came up again in “Hunger Games Leadership: The Path to Relevance Starts with You,” a presentation by Mitchell Stankovic and Associates’ CEO Susan Mitchell and Partner Dr. Brandi Stankovic.

In a barn-burning presentation that invited participants to “feel good” and “kick booty,” Mitchell and Stankovic examined the components of successful credit union leadership. Citing a survey they conducted with over 100 respondents at 76 organizations, they noted the importance of vision and communication skills. They applauded today’s leaders, who have survived difficult times, cultivated great networks and alliances, and found new ways to be effective:

“It’s not just about doing the actions,” says Mitchell. “It’s about getting results.”

Mitchell and Stankovic hope to get some results of their own as they help THINK attendees (and armchair attendees) expand their experience in the months to come. Together with THINK, Mitchell and Stankovic will be hosting webinars designed to help credit unions leaders identify their strengths, forge new ideas and find new relevance.

Stay tuned!

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Mar 20

Newark Mayor Cory Booker to Share Message of Transformation at THINK 13

General, THINK CONFERENCE / by Manager, Public Relations and Corporate Communications

The THINK Conferences have been called in an industry trade magazine “the best credit union – yet not credit union – conference.” The description is apt as the annual conference sponsored by CO-OP Financial Services specializes in bringing in world-class thought-leaders from widely divergent fields to provide insights and fresh approaches to issues facing the credit union movement.

THINK 13 offers perhaps the strongest line-up since the conference began in 2008, taking as its theme “Disrupt Business as Usual.” This conference is devoted to helping credit unions manage change – to disrupt before they are disrupted.

A message of truly transformational change will be advanced at the conference by Cory Booker, Mayor of Newark, N.J. a national advocate of urban revitalization, and a prospective U.S. Senate candidate in 2014.

First elected in July 2006, Mayor Booker has marshaled resources and empowered people in creative ways to uplift his city. Together with the city’s residents, Mayor Booker and his administration have made meaningful strides towards tackling significant governance challenges with innovation, new coalitions, creative public private partnerships and building on the already existing foundation in New Jersey’s largest city.

Mayor Booker’s speech is also aptly titled, “How to Change the World With Your Bare Hands.” Yet he is just one in a four-day roster of great speakers, which you can learn about at www.co-opthink.org.

Better still, put the event on your calendar and register for $679 immediately at the same site. THINK 13 is being held Mon., April 29-Thurs., May 2, 2013 at the Swissotel in downtown Chicago.

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Feb 19

What’s CO-OP Planning for GAC?

General / by B2B Marketing Manager

Attend CUNA’s GAC in Washington, D.C., from February 24-28, and you’ll find the CO-OP team supporting special events and introducing visitors to the latest ways they can Be There. Be More for their members.

Better Ways to Connect With Members

The three stations at CO-OP’s booth #301will provide a variety of opportunities to explore all the ways in which you can build relationships by offering greater convenience to your members:

• Convenience Bar – Experience CO-OP’s newest products through live demos.
• Member Touchpoints – View real-world case studies and play informative games on a multi-touch video table.
• Member Voices – Hear actual potential members reveal what they’re looking for in a financial institution.

Special Gifts Reward Participation

Be sure to have your GAC badge scanned at each station when you visit the CO-OP booth. The first 2,000 attendees who complete all three stations will get a $10 iTunes gift card, along with a pocket guide to some of the best convenience-oriented smartphone apps. All those who complete the booth tour also will be entered in a daily drawing for a bike.

Live Videocast Promotes Credit Union Careers

On Feb. 26, 12:30-1:15 pm, Credit Union Times will conduct a live videocast from the CO-OP booth. Titled “Not for CEOs,” this streaming program will speak to young professionals about the value of building a career in the credit union movement. Notable dignitaries from the movement, including CO-OP President/CEO Stan Hollen, will feature prominently in the presentation.

Credit Union Times 8th Annual Trailblazer Awards

Every year, the credit union movement honors the professionals and volunteers who best exemplify the commitment to progress we all share. CO-OP is honored to sponsor this GAC event, scheduled for Tuesday, Feb. 26, at the Renaissance Hotel.

We look forward to seeing you at booth #301 if you’re joining us at GAC. To keep on top of all CO-OP’s activities at GAC, and everywhere else, be sure to follow us on Twitter or like us on Facebook.

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Jan 25

CO-OP Invites You to “Be there. Be more.”

General / by Vice President, Marketing

There’s one thing that non-members seek out more than any other factor when they’re considering a credit union like yours.

In a word: convenience.

That’s why CO-OP is so excited to announce our new tagline: Be there. Be more.

According to the 2011 CUNA eScan Report “Survey of Potential Members,” convenience factors such as branches close to home, free ATM locations, and mobile banking, are the key features that would tip the balance and persuade non-members to join your credit union.

It’s not just a tagline or a mission statement. “Be there. Be more” is a rallying cry. It speaks to the common thread uniting all of CO-OP’s myriad solutions and services: empowering you to provide convenience and connection for your members. And most importantly, it urges you, our member credit unions, to push onward and forward, knowing that we’ll be standing by you and your members every step of the way.

Whether they need cash on a cross-country road trip, a human voice at 2 A.M., a branch visit in another time zone, or to transfer funds with the tap of a fingertip, you can be there for your members across more touchpoints than ever before, and be more to their financial lives than they ever imagined.

To see “Be there. Be more” in action and the promise underlying it, check out our new video below.

Be There. Be More.

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Jan 16

Wrapping Up Holiday Card Fraud: 10 Tips for Helping Your Members Deal

General / by Manager, Risk

(Editor’s Note: This article was co-written by Karen Postma,  Director, Client Services, at The Members Group (TMG), Des Moines, Iowa, and a business partner of CO-OP Financial Services).

‘twas the season for holiday debit and credit card fraud. The numbers are still preliminary, but it looks like fraud was slightly on the rise during the 2012-13 holidays.

That isn’t surprising, given that new technology in the form of EMV chip-and-PIN cards is on the horizon. Today, fraudsters can still make good use of their existing expertise in counterfeiting magnetic stripe cards, and they’re going to make hay while the sun shines. On the other hand, ever-more-sophisticated fraud detection programs have prevented crooks from running rampant.

What can credit unions do to help their members deal with card fraud? Here are 10 tips and strategies to take into the new year:

1. Get real-time decisioning if you don’t already have it. That goes for PIN as well as signature transactions. The way card fraud works these days, issuers don’t have time to stop and investigate incidents: They have to halt fraud in its tracks. Although PIN transactions haven’t always carried the same urgency as signature credit and debit, the results can be even more devastating when fraud occurs on a checking account as a result of ATM withdrawals. If a debit card is the only card your member holds, the disruption can be especially tough.

2. Update and upgrade your lines of communication. It sounds simple, but make sure the contact information you have on file for your cardholders is current. If you do come across a suspicious transaction, you don’t want to call the landline they cancelled two years ago for verification.

3. Along the same lines, sign them up for text and email alerts. The more ways you can reach out, the more effective you can be.

4. Be proactive about educating your members. Most people have misconceptions about card fraud. They may think they’ve been careless with their physical card, or that they’ve been counterfeited because they failed to shred their bills. Many worry that online transactions are categorically unsafe. They may believe you’ve been reckless with their card data, or have otherwise failed to protect their information. Most card fraud today happens without any negligence on the part of the cardholder or card issuer. Let members know – preferably before fraud strikes, and certainly after – that they (and you) are not to blame.

5. Craft an excellent process for dealing with members whose cards have been compromised. Make sure they know:

  • You have processes in place to detect fraud and stop it.
  • You’re in their corner and will help them rectify their accounts.
  • You’re concerned about any problems that might arise from having to close their card accounts and will do your best to assist them.

6. Make sure your debit card isn’t your members’ only access to money. Members sometimes resist ordering paper checks when they open a checking account. Encourage them to place even a small order: The checks will come in handy if their card is ever disabled. If they don’t have a credit card with you, this is a good reason to encourage them to get one. Even if they don’t use it as a revolving loan, they may appreciate the backup in an emergency.

7. Encourage members to monitor their accounts. If they aren’t using online banking to watch their debit transactions, they should be. The same goes for tracking credit accounts online. Even when your fraud detection picks up suspicious transactions before your members do, online banking is the easiest way for them to check legitimate activity against fraud. Also, be sure they know that small, unfamiliar charges are a red flag. These often go unreported because cardholders think they’re “no big deal” and not worth a phone call to customer service. In reality, they’re test charges that open the gates to larger fraud.

8. Put daily spending limits on your debit cards, and then make sure your members know how to work around them appropriately if need be. You don’t want to make it impossible for cardholders to use their debit cards for large transactions, but you also want a mechanism in place to stop fraud before it goes too far.

9. Consider adding instant-issue cards to your list of services. You want your members to feel attached to their cards. Reward them with the option of picking up a new card at the branch instead of waiting for a replacement by mail.

10. Stay positive. While nobody enjoys being defrauded, it’s important to remain positive – and help members stay confident – when fraud occurs. Feeling violated is a natural response to having your card account compromised, so make sure members aren’t feeling apprehensive about using their cards (or even maintaining their accounts) when everything is said and done. Fraudsters may be getting better and better at committing their crimes, but we are also getting better at detecting, halting and dealing with the aftereffects. Members have every reason to feel positive about using their cards.

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Dec 27

Convenient, Connected and Profitable

General / by Vice President, Marketing

While retailers tally record sales for Cyber Monday 2012, Mashable brought up an interesting fact about online sales: 70 percent or more of ecommerce transactions are abandoned at checkout.

Now wait.

Once upon a time, we went shopping for Christmas – got in the car, browsed in stores, stood in long checkout lines and schlepped home like good soldiers. Enter online retailing, and now literally every piece of that process has been made easier. There’s no driving and parking, wandering around the crowded mall, standing in line or lugging packages to and fro. We’re buying online, but are we floored at this unprecedented convenience? No. Because, as Mashable points out, it’s often too much trouble to type in our credit card numbers to complete our transactions: In many cases, that’s why we abandon our carts.

Welcome to the new world of convenience, where nothing – and we mean nothing – is too effortless, fast or accessible. New standards for convenience are not only a challenge for retailers, but also for credit unions. As transacting with the world around us gets easier and more instantaneous, our expectations about everything from branch locations to website design, mobile access and round-the-clock service rise astronomically.

The CU Challenge

Catering to this new brand of consumers (demographic = everyone) spells both alarm and opportunity for credit unions. To be sure, the changes required are urgent. They’re also comprehensive. If your innovation strategy for 2013 was to add a mobile function here and new web graphic there, your strategy isn’t going to fly. Consumers don’t just want new services: They want it all.

“The sum total of my decision when I chose a bank or credit union in the past was, ‘Where’s the nearest branch?’” says Jim Norris, president and CEO of Montgomery County EFCU in Germantown, Maryland. “That is no longer the case.” When Norris joined Montgomery County EFCU a few years ago, the credit union was charging for network ATM and shared branching transactions. Now those services are free – along with a host of convenience-minded features like mobile banking. Consumers want what they want, “any time, anywhere,” says Norris. “Whoever has the most convenience is going to win the business.”

Norris should know. With a growing list of convenience enhancements in place and in the works, Montgomery County EFCU is seeing a surge in new memberships and debit transactions. “We had in our goals to increase new account activity by 1 percent,” he says. “We’re in the area of 3 to 4 percent now.” Better still, debit transactions are rising 15 to 20 percent each month – without any specific promotion. Why? “People are now finding there’s more convenience, so they’re able to look at our account as their primary account.”

Look Everywhere

Getting to PFI levels of convenience requires a panoramic approach: Doing business with your credit union should be as enjoyable as shopping, so that members see, “I don’t have to use my credit union only for a loan or a great certificate. I have everything at my fingertips – everything I need.” By thinking what is easy for a member and making each experience integrated, you are creating an impression of what it’s like to do business with you.

Some elements to consider:

  • Expansive branch access, including shared branches
  • Nationwide ATM network with easy-to-use locators
  • Mobile access on multiple platforms
  • Off-hours loan information and approvals
  • On-the-spot debit/ATM cards
  • Precise fraud detection
  • 24/7 customer support by phone or chat
  • Automation that works — online, by phone or at the ATM

Do It, Say It

With so many elements to consider, you might wonder whether credit unions can compete – and win – on convenience. Answer: There’s no reason they can’t. A 2012 survey by Chadwick Martin Bailey found that 85 percent of respondents were happy with the mobile and online access they got at their credit unions – compared to only 66 percent at large national banks and 55 percent at regional banks.

When credit unions make convenience a priority, members approve. That said, it’s also important to promote convenience with your members – even with something as fundamental as ATM access.

Orange County’s Credit Union, Santa Ana, Calif., doesn’t merely mention ATM access to new members. When new members open accounts, they receive new account cards and emails listing the CO-OP Network ATM locations closest to their homes. New staff will play training games to learn how to work ATM locators – and drive home the message that ATM access is everywhere. To make the point that Orange County’s CU is part of a nationwide ATM network, the credit union is wrapping its ATMs with the CO-OP logo and artwork. “Wouldn’t it be powerful if all the credit unions in the CO-OP Network came together with the same look and feel?” asks Teresa Koch, Vice President, Marketing, for Orange County’s CU.

Even better: Telling members and prospective members just how convenient you are is in itself a convenience. And we all know, consumers can’t get enough of that.

Get the whole story on convenience and the credit union movement by downloading “Convenient, Connected and Profitable,” a white paper and Webinar presentation, available here.

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