Credit Union Geek

Marketing, Strategy, and The Force by Joe Winn

Tag: security (page 1 of 4)

If Your AI Is Only For Chatting, You’re Doing It Wrong

“Ask Our Friendly AI!” Your credit union’s website is excitedly promoting their new chat bot, there to answer questions 24/7. “Cool, so how can it help me save money or time?” Whether they admit it or not, that’s what your members will be thinking. In some cases, such tech is fielding member requests without burdening traditional staff time. And their resolution rates can be similar to human representatives. What are you waiting for? Get Siri, Alexa, Cortana, and friends to every CU! (HAL is not welcome, sorry)

It’s not that simple. “AI” support agents are uniquely programmed to understand financial world terminology. Plus, computers don’t excel at interacting like a person, since we learn and process the world in a different way. One day, I’m certain this will no longer be the case, and all systems will talk to each other in the background, so you could ask Siri (remember that post?) to transfer money from one account to another, explain the tax implications of your specific IRA contributions, and what the score is for your favorite team. But we’re not at that point…yet. And look who spoke too soon…we’re actually getting awfully close.

Readers know my passion (that’s 3 links!) for the “AI Revolution”. With its arrival, a lot of ideas are being thrown around on best use. Right now, the most common answer is: Everywhere!!!

Patience, my young Padawan. A fancy chat bot might seem like the natural first step, but let’s look at it from a member benefit perspective. If they have a question, they don’t care who/what responds. They just want a quick and accurate answer. If your team is currently able to keep members served quickly and effectively (through any medium they contact), then this may not be a fit for you at this time. Unless you have unlimited resources, in which case, yes, do all of this at once. Just make sure you have top-notch project management to ensure the focus is always on the unified credit union goals.

For the rest of us, the AI which makes the most sense, if less “sexy”, is the Big Data side of AI, the machine learning. Here, you have solutions which can analyze a member’s credit (beyond the report) and offer a rapid loan decision with high rate accuracy. You can implement systems to monitor patterns in spending to identify fraud the moment it occurs, saving the institution money and the member frustration. Machine learning is also enabling security of the body, biometrics. You know it as the fingerprint sensor on your phone, but facial recognition is also commonplace on new Windows 10 computers, while retina scanners are the “top level” of security at large financial institutions.

Speed. Savings. Security. Three great reasons to implement aspects of AI in your credit union. A recent post about this topic ended with a wonderful quote:

“When a bank…effectively uses AI, they run more efficiently and are able to connect more effectively with a segment of the population that will never be replaced by machines: their customers.” – Mohit Joshi, Innovations in FinTech

Ok, ok.  I’ve given you way too much to consider.  AI, Big Data, machine learning, algorithmic analysis…yeah, I get it.  Overwhelming when you just want to know, “can this stuff help my credit union?”  So, I had a realization right after writing this post.  Remember that series I did about tech in the financial industry?  As part of it, I mentioned that financial institutions are at risk of becoming “dumb banks” in the same way that ISPs are “dumb pipes”, simply being the corridor for other companies’ information.  You hold the money, but your members use other company services to move, spend, invest, even check on their funds.   The same is the case here with AI.

There will always be a place for information as you manage it now: Raw account balances aren’t going anywhere.  But that’s “dumb data”.  The future is in “smart data”.  Where your credit union and members can find patterns in spending, opportunities in lending, and personalized recommendations for minimizing debt (or maximizing wealth).

How will you become the “smart data” of the future?

Why My Credit Union Is No Longer My PFI

Originally published on CUInsight.com

A few months ago, I slipped a mention of my own credit union relationship. My CU of many years was no longer my PFI. Banking shouldn’t be an exercise in compromises and hassles, yet that was what it had become. My PFI is now an institution which is so seamlessly easy and tailored to my needs that I often forget what it was like to have problems (Anything that has come up was handled within a few minutes, no matter the medium).

So, not all credit unions are the same. Besides being designed for differing memberships, they can also have a varied capacity for improvement. It’s why I keep talking about finding the right partners. Maybe a dozen CUs can afford to keep up with innovations on their own; the rest must find strategic partners. However, I digress. My CU wasn’t doing either.

During my time as an active member, here’s some of the challenges I encountered:

  • My debit card was compromised. It happens. But replacement taking 2 weeks? I asked for sooner and they wanted to charge $25 for a 3 day timeframe. The Big Banks replace overnight. Build the cost in; the alternative will only upset members.
  • A $100 member reward program failed to deposit funds when promised. Noticed a month later and had to speak to them to get it resolved.
  • Customer support hold times have never been less than 5 minutes. Typically, it was up to 45 minutes, with no system for callbacks in place.
  • No service on weekends after 1
  • Poor support on their mobile app (see post about the security issue, still unresolved)
  • Hard limit on mobile check deposit amounts less than 10% that of competing institutions. Their suggestion was to visit a branch to deposit instead.
  • Online secure contact form takes 48 hours to get a reply

I’ve actually had a number of other issues, but have forgotten the details for inclusion here. The credit union mission is special amongst banking institutions, but it’s not the only thing which matters. You still have to be a top-quality solution for your members. And, if your members have a problem, your resolution process needs to be seamless. It’s as if I’ve written about these things before.

After sharing some of these things on Twitter, I had more than one credit union trying to gain my membership. Unfortunately, I was not eligible by geography or work. However, they were on top of member recruitment and ensuring they were serving not only their members, but potential ones anywhere. Alliant still wants my loan for that Tesla I’m totally getting eventually. 🙂

What are you doing to ensure your members adopt you as their PFI, and not, as I did, fall away from the relationship?

If IT’s Broke, You Can’t Release

Eagle-eyed readers will notice the “typo” in my title. Good catch! However, no mistake was made. We’re talking IT, as in “information technology”. In other words, your digital stuff.

Naturally, I’m a member of a credit union. They are a small to mid-sized institution, and I’m going to leave their name out of the discussion. If you really want to know, a quick check on my Twitter feed will give you the answer you seek. You’ll understand why in just a few sentences.

Honest disclosure: They’re no longer my primary financial institution. Let’s just say that not all credit unions are like yours.

A recent article by a fellow industry writer pointed out many great points about engaging your younger members. Yeah, a Millennials story. With truths! Rhiannon Stone (I’m sure she never gets the Fleetwood Mac reference tossed out…nope, I’m the first) explains, like me, that appealing to young people is just like connecting with anyone else. Your services need to be naturally easy to use, fast, and comprehensive. Also, they just have to work. “You are more likely to keep younger members by providing applications that are straightforward, intuitive, and free of glitches.”

Therein lies the point of this post. Their mobile app, shall we say, is old. It last received an update October 2, 2013. Did your current phone exist back then? 3 years is an eternity in mobile tech. Especially in mobile banking. But, it worked. No, it didn’t fill the screen and functionality was limited, but, the things it did support ran as expected.

On Monday, they released a new version…finally! It debuted a redesigned look and feel along with some new security features. No, the new design wasn’t better, but it was new for newness sake. Oh well. But alas, it now supports logging in with Touch ID! Welcome to 2015 and the big bank apps! I eagerly activated this feature. Then I closed the app and reopened it to test.

It didn’t work.

Ok, that’s not fair. The app opened right up with no problem. Only it never asked for my fingerprint. Or my password. It was now stuck “logged in” to my account info. Even logging out in the app was just a tease. Reopen it and there appeared my accounts again.

Being the responsible user I am, I quickly reported this issue to my credit union via Twitter. Two whole days later (they posted “Good morning” tweets in-between), they replied (ok, they “quoted” my tweet, but it’s close enough) with, “Hi Joe, thank your feedback. We’ll look into it and will try to improve this soon!” Grammatical errors are their own.

Would this inspire confidence in the security of your data? Or in their attention to detail? Let’s recall what Ms. Stone said about keeping younger members: “by providing applications…free of glitches.” This is beyond a glitch. It tells me they never bothered testing. In case you might think, “well, he’s a geek, probably running some weird operating system on an obscure phone.” I have an iPhone 7 with iOS 10.1.1, the same setup hundreds of millions of other Apple users enjoy.

I can understand if the interface on their new app had some visual artifacts or performance issues. It’s new and all software has bugs. However, the core security should be rock-solid. This part you can’t compromise or “wing it”. To me, such a critical bug should mean the app gets pulled immediately until it can be resolved. You can’t mess around with security.

My generation doesn’t tolerate security issues or companies with a lax attitude towards technical problems. Look at the uproar when Netflix was recently down for a few hours…the Internet nearly imploded. Netflix, to their credit, was incredibly responsive throughout the outage, updating as they learned more. This is how you have to be now.

Like it or not, your credit union is now a tech company, with all the privileges and responsibilities that come with the role. Those who can fulfill this position well will reap the benefits. Those who don’t grasp this concept will be in a future, “mergers of the month” article from NCUA.

Where do you see your credit union in 5 years?

Image credit: http://www.csus.edu/sacstatenews/articles/2010/12/images/instory_security.jpg

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