Socially-Distanced Marketing, Strategy, and The Force

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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?

Your Credit Union Members Want Simple

I Love Choices

I’m the kind of person who rotates between five brands of orange juice (I live in Florida and this is a perfectly normal thing here).

As a tech geek, I also dive into Settings menus on all products to see what I can personalize, edit, or tweak.

Even Choice-Aholics Want A Clear Decision

But even for me, a choice-aholic, there are things I’d rather be decided ahead of time. If I plug it into the wall, I want it to be UL listed. Don’t give me the choice of 6 highly similar products with varying degrees of regulatory approval, safety certifications, or otherwise.

Offer one. One “just right” option.

Variety comes in actual aspects of the product or service. Let the provider whittle down the “backend” complexity. That’s why I’d buy from them, because they did the work so I don’t need to.

Which brings us to you. The smarter choice, the only decision your member should have to make.

Oh Boy! A New Member!

Wonderful, you’ve welcomed a new member to your credit union family. Let’s help them get set up with a checking and savings account, talk about refinancing loans, and perhaps see if a credit card makes sense (use that credit pull to position the conversation around rewards, interest rate, or balance transfer).

Shouldn’t be too hard. That’s only 4 things, and, more than likely, 3 are pertinent to the member. So let’s get that checking account opened first, because it can help make you their PFI. You have more than one? Ok, no problem, we’ll help them decide.

So, should they go with Advantage Checking, Premium Checking, VIP Checking, Rewards Checking, Rewards Plus Checking, Free Checking, Senior Checking, Youth Checking, or…wait, there’s more?

Just like those famous droids, “these aren’t the choices you’re looking for.”

It’s checking. Not choosing your preferred model of F-150 (if you aren’t aware, there’s oodles of options). You only need one. Maybe two. That’s it. If your board insists upon the old and boring free checking, keep it.

Providing Immense Value

You’re about value. So make your checking be something your members smile about having (and even paying for…yeah, seriously). Add a clear monthly fee Premium Checking with more benefits than your members can believe.

Since you’re getting a small monthly fee, offer everything:

  • Dividends (though low, offer higher rates up to a certain dollar amount at very low cost and high perceived value)
  • Rewards on debit transactions
  • All your standard services
  • Plus, value-adds like ID theft monitoring, mobile phone insurance, and more
  • Budget-conscious members, whether young, rebuilding credit, or some other life journey, always have the option of your free checking.

Basic and free or Premium and small fee. Simple.

When’s Too Many Too Many?

Doors Along Wall

That’s a lot of doors. I mean choices. Maybe I’ll just wait here.

Some credit unions have 5 or more checking accounts. That’s. Too. Many. And then you can become eligible for other benefits through achieving a series of Reward Levels. These are based on the depth of a member’s relationship.

Maybe it means lower loan rates or higher dividends. Sometimes it adds ATM fee reimbursement, or other value-adds. I’ve written about this before.

Once we’ve made it through checking, maybe the conversation migrates to an auto loan. How many LOS platforms do you have? Exactly. One. Because more would be unmanageably complicated.

Yet, how many “car resources” do you offer? Find one which offers the best overall experience for your members, and you’re done.

It’s A Trust Thing

Your members joined (and continue to bank with you) because they trust you with their money. That’s saying something. Believe me, if you explain that the credit union has determined “so-and-so” is your preferred option for members, they won’t question it.

Cat and Dog Laying TogetherThey trust you’ve done the work to select only the best solutions. They could search Google. And, most likely, they already did. Then, they asked you.

Your member just wants a place to easily manage their finances! Keep it simple. Then you can focus on improving your members’ lives. Which should be your driving force in every decision.

Disclosure: My company partners with a firm which offers a comprehensive checking solution. It’s in hundreds of CUs and is loved by staff and members. My company also offers a Car Buying platform for CUs. Knowing when members are in the market saves everyone time and money. 

Even More Bad Advice – Part 2

Originally published on CUInsight.com

If you thought the last post was awful, this one is worse. We’re back to giving bad advice. This time, we’re talking choices, external link warnings, and, because it’s my top pet-peeve, passwords again!

More Options Is Always Better

“Enjoy checking…with choice! Find the account which matches your needs from our 5 different plans. They’re basically all the same, besides a 0.01% dividend. But who cares…options are essential!”

I get the concept: By creating a solution for every possible need, you can appeal to any potential member. Thus, your membership potential isn’t any one category, it’s humans (and sometimes even that is stretched…why can’t your dog share in savings?). Now that I’m thinking about it, a savings account for your pets is pretty cool. You could put away for their essentials, vet bills, unexpected challenges, and more. It’s like a savings goal, but separated in a fun way. Ok, that one is excluded.

Where was I? Oh, yes, choices. My business works primarily with the auto lending side of credit unions. In it, there is one main goal: Encourage the member to get pre-approved. However, people look for a car before a loan (unless they have no clue what they can afford/finance). As a result, many credit unions set up car-buying resources. They include calculators, lengthy PDF guides, and external company links. In many cases, they’re not even affiliated with those outside links! (Keep this in mind, it comes up later) What are you doing? Keep it simple! One link to do the fun “build/find a car” with a partner program (Disclosure: My company offers exactly this) and another to get pre-approved. Those outside company links? They often have their own financing programs. Bye bye loan (or ever knowing that member is looking to buy a car).

You may have heard of the “Paradox of Choice”. Give someone too many options and they’ll never make any decision. In fact, new research shows that this isn’t 100% true (science doubts itself always, boys and girls). What they found was that better options are better. More options for the sake of options makes people do one of two things: 1) Never decide and do nothing or 2) Decide based on meaningless factors (possibly because the important ones are hard to understand or not immediately obvious). If you must offer options, make sure they are equally good and clearly different.

External Link Warnings Keep Members Safe

A vestige of the World Wide Web’s “dark ages”, these are pop-up messages telling the browser that they are now leaving so-and-so’s website, and they cannot guarantee their safety, security, or that delivery will be in 30 minutes or less. You don’t need them. Many credit union legal teams claim they are mandated, but the only reference I’ve ever uncovered is a non-binding NCUA guidance from 2003. That’s Pi, or pre-iPhone. Weather widgets, local news scrollers, and other useless distractions were commonplace on most websites. Sure, if someone was clicking from their online banking to see what the latest news is in Anytown, USA, yeah, I’d want to ensure it was clear that site isn’t us.

You’ve learned a lot since then.

And if you’re that worried about where you are sending members, why send them there? (Remember the post Trusted Partners!) I’ve seen external link warnings on links to NCUA, loan applications, and more. You have legally-binding agreements with these partners or providers! It gives me the feeling these credit unions just said, “The world is a scary place. Let’s terrify our members, too. Oh, and make sure they never use our products.”

Alright, your legal team insists the warnings are necessary. Can’t argue. Just make them friendlier! Instead of a long text field in legalese, create a bright-colored, concise text notice. “Hey, just so you know, this link goes to someone we work with. They’re great, but we have to let you know they might have different policies on privacy than us. Click here to continue or just wait 5 seconds and we’ll get you on your way!”  Here’s an example from a client (name redacted). It’s still a bit long for my taste, but isn’t scary if you read it:

Simple, friendly, and still accurate. Always remember your mission. You’re people serving people. The second you adopt the terminology people associate with “big banks”, you’re no different.

So, instead of slapping warnings on every link, be diligent in working with people and companies who truly share your mission. Then you don’t need to warn anyone about anything. And, if it’s essential, be nice about it.

Passwords With Symbols Are Most Secure

We covered this in passing last time. But since the focus was on changing passwords, I want to cover this independently. Your password doesn’t need to go to the gym. And no, your password doesn’t even lift, bro.

Password strength is determined by how hard it is for a computer to figure it out, strictly by guessing. And you know the easiest way to make it really hard? Length. Not symbols. Not using aLterNatinG cases. Not replacing 13tt3rs with numbers. Sheer length. Here’s that amazing xkcd comic to explain why, once again.

If my password was “GoshIneverrememberpasswordsnomatterwhattheyare”, I can guarantee you, no computer in existence today will ever crack it. Yet you’ve already memorized it.

Many recent password leaks have had passwords figured out because the security they used was garbage. I can’t help you there. Insist their system gets an outside security audit regularly, and, if they’re responsive, ask if they’re using salted password hashes. If they aren’t, don’t give them your information.

With good security and strong passwords (ie. long ones), you can enjoy the convenience of online services with little worry of your information being compromised.

I never want to see those, “Your password must include 6 symbols, 2 emoji, 3 different cases, and one name of your favorite pet” prompts again!

And that’s just a bit more bad advice.

Image credit: ArsTechnica, http://cdn.arstechnica.net/wp-content/uploads/2013/05/correcthorsebatterystaple.jpg

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