Socially-Distanced Marketing, Strategy, and The Force

Tag: member education

Digital Transformation Challenges: For Your CU & Members

Originally published on CUInsight.

Did someone say “digital transformation”? Ok, that was everyone shouting it at the same time. Got it. I’m glad we made that transition. It’s all done by now, I presume? You’ve had, what, 4 months? How hard could it be?

According to a survey from Cornerstone Advisors, 70% of respondents claimed their existing systems were barriers to change. As Ron Shevlin, in his Forbes analysis, so appropriately quipped, “the other 30% must have misunderstood the question.”

Thanks, I truly LOLed. I hope you did, too.

“Search your feelings; you know it to be true!” Ok, that was Luke Skywalker. And he was talking about some Force stuff. It’s not important. Fate of the galaxy and all. But not our galaxy, probably.

If addressing your challenges to true digital transformation, right Skywalker was.

We’ll discuss two factors that make your work harder. One is internal. The other, like the truth, is out there.

The Truth is Out There - X-Files
Credit: X-Files (Fox)

Your Systems Can Be Better

It’s an important discussion to have with your team, core provider, technology partners, and product support companies. (Disclosure: That’s people like me.)

Case in point: One credit union’s lending person told me about a challenge with data matching. In arriving from two separate sources, they couldn’t compare easily. Their process was laborious and got, at best, 70% accuracy. Ok, but not good enough.

With a seemingly-small update to their core, they were now able to use another piece of data for matching. Now, it was easy, automated, and 100% accurate. I asked what they did to make it happen. “Nothing, just getting our system to let us filter by that variable was all.”

In their case, the credit union did not have to transition their core, change LOS providers, or undergo a multi-year planning phase. They just needed an update. Am I saying your challenges can be overcome that easily? Probably not. But some might.

Your Members Need Guidance

Compass Sitting on Map

A lot of your members embrace digital solutions. The moment they activated their new phone, your app got installed. Check deposit? Scan and go. Fund management? Easy.

This is what you want to see. Consider adding some nonintrusive and short surveys into the app experience to make sure you’re serving their needs. And never be afraid to glance at what other CUs and banks add to their mobile platforms.

Of course, I’m not suggesting to get into an app arms race. What works for Capital One customers may not be ideal (or feasible) for your credit union. But knowing is essential.

And, of course, building your credit union mission into your app/digital platforms. What’s that mean? Make sure all features encourage responsible saving, a deeper relationship, and educate where able. Above all, make it all easy. Burying options in menus is not the way.

Are Members Using Your Digital Functionality?

iPhone in Hand Black and White

Which brings us to ensuring your tech-savvy members know your app’s features. Look at usage metrics. Do all features see activity? I wouldn’t be surprised some members wish you had a certain capability, only to not know where it is (and thus assume it’s not there).

Trust me, as the go-to “tech fix it” person in my social circle (yes, even remotely, it’s still my role), this is way more common than you think. I get this kind of thing all the time:

“If only I could print straight from my phone! Emailing it to myself to open on the computer is such a pain.” “Um, you can print from your phone. Just hit the share icon, then Print.” “What? That’s amazing! How would I ever have found this?”

Yes, I’m a genius. I tapped the button.

That’s not your only member challenge.

Do Members Trust Your Digital?

Three Black Handsets
“There’s my high-tech!” – Someone you know

For some people, there’s a “digital trust gap”. Before even diving in, let me say, I get it. For my own devices and services, I take major steps to ensuring my security and privacy. It’s way more than the average person. So for someone to want to avoid it all to stay safe? Sensible.

What are some of the specific challenges? I’ll share a few I’ve heard:

  • A paper check is more secure (not to mention convenient and privacy-protecting) than an online bill payment
  • Mobile (contactless) payments are less secure than using a physical card
  • Online banking services just gather up your personal information to sell it to others (or get hacked); it’s safer to just stay “offline” to protect against bad actors and corporations

We could fact-check each of these points together, but why? You know much of it isn’t just false, it’s actually more risk in the opposite direction. Yet it’s also clear that providing facts doesn’t change minds; it can cause further “digging in” to incorrect beliefs.

So how can you work with people who fervently believe your digital solutions are a danger? You acknowledge their concerns (because though wrong in conclusion, they are right in principle), then explain how your approach addresses each.

Honesty & Transparency Always

Moon Jellyfish
Be transparent like these moon jellies.

Will you get everyone to jump onboard? Unlikely. But even for those who reluctantly use your online banking or manage to keep paper versions, they’ll recognize your commitment to honesty. And that’s how you build loyalty.

In our time of forced digital acceleration, I’ve seen some successes. Someone I know who aggressively rejected online banking now has to use it. And you know what? He’s fine with it. They managed to address his concerns well enough.

Systems Are Just Part of the Challenge

You’ll read and hear from a lot of people in our industry talking about digital transformation. I’ve been one of them for as long as I can remember. Everyone has good intentions; to shift credit unions into a digital future to remain effective and competitive.

We know your existing systems are a huge part of that challenge. Unfortunately, I can’t help you with that, only recommend speaking with the providers for their best guidance. Then, moving forward, work with partners who recognize your current and future needs.

As you aim to grow your membership, wiz-bang tech features are fine, but they must be rooted in achieving your mission. Show how what you provide highlights the “credit union difference”, even in what people thought was a basic banking concept.

What have you done to reach, assist, and empower members during your suddenly-rapid digital transition?

Unseen Credit Union Competition: “Respond Immediately!”

Credit unions aren’t just “cheaper banks”, nor are they “banks owned by the people”.  They’re unique community institutions.  At least, I still believe this.  Do you?

This article dives into what happens after a member closes a loan (auto or mortgage) with you. Specifically, we look at the solicitations they receive. And what your role is in helping your member understand it all.

Who’s Your Competition?

It’s tempting to think that your primary competition and challenge comes from the big banks. Sure, they offer similar products and target the same groups of people (ie. your potential membership). Their marketing efforts present them as a community-focused option.  They make it about their customers, not about the money.  I’m no expert, but it definitely sounds like they’re competitors.

It’s true.  They are.  And for many people, you can offer a better option which will save them money.  Yet, besides the exceptional record of Wells Fargo, the national banks don’t engage in “slimy tactics” or attempt to steal customers by just-nearly-but-not-quite misrepresentation.

On the whole, banks (both community and national) want their customer’s business and aim to gain and keep it through honest means.

However, there’s others with a slightly different agenda. This article looks at competition to credit unions besides banks, and how you can use your existing products, member relationships, and educational mission to beat them at their own game.

Loan Closing & What Comes After

Last year, I bought a new car.  Yes, I have a lot of fun when driving.

Shortly after, I began to receive letters in the mail much like this:

Real…ish

Packed in official-appearing envelopes (many had that, “fold each side and tear in order” government style design), with names such as, “Automotive Services Department” or some other bogus, yet “maybe they’re real?” title, they appeared in masse.

They encouraged, no, insisted I follow up immediately regarding my vehicle’s impending warranty expiration.  Never mind it’s a new car, with a 3 year factory warranty included.

I COULD BE AT RISK FINANCIALLY IF I DON’T ACT NOW! Of course, the action to take is to get in touch with whomever runs these shady enterprises (they’re not affiliated with any of your VSC providers, trust me) and make sure my car is protected.  Much protection, indeed.  “Do you cover diagnostic time and taxes?” is a question I would feel obligated to ask if I ever were forced to reach out.

Of course, I wouldn’t. Even the FTC warns people against these potential VSC scams. Yes, some might be real services, but when your credit union offers a tried-and-true solution, why risk it, while also spending more?

Why mention these letters?  Because every time your member finances with you and every time they don’t, they’re getting dozens of mail pieces like this.  And this is what they ask themselves:

“Do I know for certain it has nothing to do with my credit union?  Is it a scam?  Can I get a better deal from here or my dealer?  Is it even something I need?  What’s the harm in a call?”

It’s unlikely your members will ever ask you any of these questions.  But you can bet they’re asking someone, whether it be Google, that helpful voice in their head, or a spouse or friend.  You can be there for your members in more ways than you think.  And this is what sets you apart.

A Loan Closing Tip

Imagine if at every loan closing (that includes mortgages, because I get things like this for my house all the time), you had a short conversation about potential fraud and things to beware.

“Ok, Jenna, we’re just about done.  Are you excited?  Because I am!  Since we’re here for you across your entire financial life, we want to make sure you’re empowered to spot what’s real and what isn’t. Here are some examples of letters you’re going to get in the mail, maybe even in your Inbox.

They’re not from us.

All of our communications will always include your member number and our logo. These make themselves look really official, and often have scary wording. Crazy, right?

Please look out for these and make sure any future interaction about your financing is with myself or someone else here at ABC CU.  I know it may seem silly, but we used to see many members fall for similar scams, and we want to help ensure you’re not one of them!

And as far as vehicle service contracts go, we’d be happy to have that discussion to see if it makes sense for you!  Does this make sense?”

Has anyone ever said that to you?  What if they did?  How would that make you feel?  A bit more trusting of your credit union, right?  That they have your back, and want to go above and beyond to keep you safe and secure?  That’s a credit union I want to do business with and share with my friends and family.

In a future post, we’re going to address GAP and VSC coverage (the legitimate ones) and how they differ (or don’t) between credit union, dealer, and insurance provider.  Later on, we’ll educate each other and members on buy-here-pay-here lenders.

It’s About Your Credit Union Mission

Remember, your mission likely includes something about ensuring your members live a financially successful life.  Here’s one easy thing you can implement which may make a big difference for your members.

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How can I tell if my car has been hacked?

  • When you drive, does your GPS talk back with more attitude than normal?
  • Do you find your car going on late-night ice cream runs?
  • Has your car strangled you or your family? More than once?
  • Will your car refuse to perform rolling stops or turn right on red?

If you can say “yes” to any of these, then your car may be hacked. But don’t panic! It’s equally likely your car has just been possessed by a hungry ghost.

We are all acclimated to the security risks on our computers and phones; you update often, avoid sketchy websites, and don’t download questionable software. However, the king of the open road has never dealt with these challenges. Our cars were a sanctuary. The only risk was of being involved in one of 10.8 million accidents per year. But hacking? Leave that to the computers!

Today, your car is a computer as well. In fact, it’s more computer than your computer. Besides the OBD2 service plug under your dashboard, it is a veritable treasure trove of calculating machines. Anti-lock brakes, stability control, airbags, roll compensation, variable headlights, lane guidance, and more all run computations hundreds of times per second. Not to mention the entertainment systems which are more tightly integrated into car operations each year.

News stories describing vehicle hacking sensationalize the event, making it difficult to know whether the problem uncovered is a true risk. Perhaps, then, we cannot blame people for being afraid of their next car being the victim of hackers. A recent survey conducted by Kelley Blue Book put numbers to the suspicions. Of note, nearly half (41%) would consider vehicle security provisions during their next purchase. Over half (58%) felt a permanent solution to the problem will never be found.

That group is correct. If computer code is more complex than “Hello, world!”, it has bugs. Just as your body has a variety of protections against sickness, from skin to an immune system, sometimes both our bodies’ and our computers’ code gets “colds”. The concern is in severity. A small rash might be an inconvenience, but the flu can put you out of commission for days. Same too with the computer. If the bug is serious enough, and a hacker (like a virus) can infect deeply into the system, then the system can be taken over.

The key to ensuring car hacking does not become a safety issue is in the ability to get fixes to the vehicles. Tesla designed their Model S (and all future vehicles) with a wireless update capability, much like your phone. When it’s plugged in and charging, it checks for updates, which can fix security and stability bugs, as well as add new features. Your next drive is then more secure. The Jeep Cherokee you heard was hacked (luckily by good guys) has no such feature, and must either be driven to a dealership or manually updated with a USB drive.

Luckily for Chrysler, people don’t yet see their cars as they do their phones. From a technical standpoint, they’re the same; Internet-connected devices that you depend upon to just work. In the aforementioned survey, 64% would elect to drive to a dealership for a security update to be installed. Would you drive to the Apple Store, wait in line, then wander around the mall for an hour while the latest update is set up on your phone? Of course not. You’d demand better. It’s only a matter of time until this migrates to cars.

Your credit union (you didn’t think I’d get to you, but I did!) has strong security features in place. Your members’ personal and financial information must never fall into the wrong hands, or any other hands, for that matter. But vulnerabilities exist and there are always those looking to exploit for their own ends. Does your IT team ensure both technical problems and human error cannot compromise your core LOS? What about your members? If your last security notice to them was a red bar on your website, they didn’t understand. In the same way you provide financial literacy education, help your members keep a safer digital life. Share the procedures in place at your own branches…does anyone use “password” as their password?

In today’s always-connected society, you are likely the most security-conscious entity your members directly encounter in their daily life. Help them be as great as you at conducting safe online practices. Consider yourself the wireless updates for your members’ security features.

But watch out for that moody GPS. Your delightful British accent isn’t fooling anyone!

Update: Another report has surfaced that the OBD2 port mentioned above connects to an inherently insecure platform, the CAN bus. It’s ok, it’s only on every car made in the last 20 years. However, devices that give the port wireless capabilities, like OnStar or insurance monitoring attachments, put your vehicle more at risk. Me? I’m keeping that port empty, especially given all the self-driving systems on my car. 

Image credit: http://blogthinkbig.com/wp-content/uploads/2014/01/hackers-new-cars1-620×413.jpg

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