Major changes in the financial industry as a whole, such as Reg E (itself a gray area of “responsibility”) and tighter federal regulations in banking reform create new challenges that push us toward change. Also, consider some of the major changes in consumer behavior. As a result of smartphones, customers can do nearly everything remotely: mobile banking, remote deposit capture, etc. This behavior is on the rise. Recent studies report that about 9% of bank’s check transactions during Q4 2013 were conducted with a mobile device like a tablet or smartphone (that's up 2% from the previous quarter). Only 20% (roughly) of all banking transactions are conducted with paper checks (down from 60% in early 2000).
The future is taking shape right in front of us. Branch activity is becoming less transaction-based (deposits and withdrawals) and more relationship-based (loans and investments). People don’t want people to help them with their day-to-day banking, but they still want “people helping people” when there is a problem or when they have a major life-stage need. In short, these e-delivery solutions will not replace our branches but they definitely challenge us to evolve around them to become a more relationship-based partner.
How then, can credit unions make the transition from transactional organizations to true relationship organizations? How can they strategically connect people, processes and technology to not only embrace change, but also lead the change?
Branch transformation.
Consider, for example, the innovative 3D branch technology by Buffalo Pacific that some credit unions are just starting to adopt. When a member needs to interface with one a credit union expert, the Omni Suite system can allow one of your knowledge experts to have face-to-face, 3D interaction (with full eye contact) with a customer in any of your branches … without having to travel to that location. It has a very futuristic aura about it that members delight in experiencing, and after all that is what we’re talking about. The future.
Role transformation.
The writing is on the proverbial wall. With consumers migrating more toward mobile and online applications, branches are being pushed to become less transaction-focused. That said, credit unions need to shift their focus to building deeper, stronger relationships. To that end, your core’s the key: the ultimate Member Relationship Management tool.
As it is the center of all member transactions and interactions with your credit union, the data it provides can be used to provide strong, need-focused member solutions that help you transform your core from a transaction-focused expense into a strategic, data-driven profit center. Imagine being able to approach members with what they might need before they even ask for it!
All you need is a Member Relationship Management tool that converts the transaction data into actionable, strategic knowledge and the support of a marketing professional whoknows how to use that data to reach the right member with the right message at the right time.
In all this change, there are seemingly boundless opportunities for credit unions to potentially blaze some new trails with respect to how member interactions occur: by transforming their role in consumers’ lives, but also by changing the classic model of the branch itself.
How will you embrace and drive the changes going on around us? The role of tomorrow’s credit union is shaping up to be dramatically different than its role today. What changes are you employing to reinvent and reposition your credit union? Again, leaning on the status quo is a wobbly proposition. Moving forward, give yourself the benefit of a stronger foundation -- one based on stronger connections and relationships with members. The kind of relationship they’re telling us they want.
Wayne Benson
President & CEO
EPL, Inc.
President & CEO
EPL, Inc.
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