SAN FRANCISCO -
Many CUs, even large ones, operate their branches as if each one is a mini-credit union, failing to take advantage of the very same collaboration they use so well with each other and apply it internally, according to Rick Poulton, president of Better Branches, a CUSO founded in 2003 by Sacramento, Calif.-based SAFE Credit Union and two non-CU investors. Poulton said branch operations at most credit unions are inefficient and expensive because CUs usually do not have a reliable process to ensure front- and back-office collaboration.
"This is ironic in an industry that is the most collaborative I've ever known," he told the Credit Union Journal. "The reason they don't collaborate is most do not have the tools. It just so happens, we've built one of those tools: Better Work Groups."
Better Work Groups is one part of the Better Branches family of products it offers to CUs. Poulton Consulting Group, which Poulton owns, and Performance Systems International, a credit union-focused software development house based in Murray, Utah, are the other two investors in the CUSO.
"Better Branches was founded in 2003 to create innovative technical solutions that would incorporate best practices workflow," he recalled. "Better Branches helps credit union staffs deliver a consistently good member experience."
In addition to Better Work Groups, which smooths collaboration between the front-and back-office personnel in a CU, Better Branches has developed Better Lobbies to reduce member waiting times through efficiency. The CUSO also joined forces with a third-party vendor, SegmentOne, to create a platform that promises to improve cross-selling to indirect lending members.
Conscious Differentiation
Taking a more collaborative approach, he said, is vital for CUs as the financial services market becomes increasingly competitive. "For credit unions to prosper and grow in the future, they must consciously differentiate themselves in areas they already have strength, such as service quality and beneficial rates," Poulton suggested. "Credit unions must be great at service, but we must give the tools to staff members to provide the best service. We build tools that help credit unions do this without having to make a huge investment by creating or buying technologies."
Putting the right tools in place allows the front line to get back to its primary duties: dealing with existing members and recruiting more members, based on providing a great experience, Poulton assessed. He said front-office staffers should be handing off several tasks to the back office.
When a member comes into the branch to, for example, report a lost credit or debit card, the front-line staffer can send a request to the back office for a replacement card while the front line attends to putting the account on a watchlist, so that in the back office the new card is issued automatically at the same time the fraud-monitoring process begins.
"Most credit unions handle this process by employees sending e-mail, faxing a form or by leaving voice mail messages for each other. Again, this is very inefficient, and leads to a front-office/back-office dynamic that is not good," he said. "People in the front office feel those in the back office aren't doing things fast enough. No one can say with assurance how long the process will take. There is a lack of control."
But there are tools available to automate this process, Poulton said, creating a better experience for the member. By tying all of the branches together, the CU can also ensure that if the member should stop in at a different branch to get an update on the account, that other branch also has access to the information.
These same collaborative tools can streamline how a CU opens a new account, automatically beginning the credit reporting process even as a new account is being opened, Poulton noted.
"So, before the member service representative begins to speak with them, we know why they are there and what they've come in for. The credit union can offer new members products that fit their needs, and they are visible on a computer screen the member and the representative can both see in a collaborative manner. It is like shopping on the Internet. No one has to type a field twice, because all the data is retained."
At the end of the process, a welcome letter details all accounts that were opened, as well as accounts discussed and declined. Poulton said this honors the member by demonstrating the person was heard, and the CU acknowledges the person does not wish to be offered more information about certain products.
In addition to cutting the account opening time in half, Poulton said the collaborative nature of both people seeing the computer screen means the new member doesn't feel as if he is being "interrogated."
Another area where credit unions can improve the way their branches "work" is monitoring and managing branch traffic.
The first step: eliminating the clipboard, where members are asked to write their name and reason for visiting. The problem with this low-tech method, Poulton said, is the potential loss of privacy for the members.
Instead, CUs should look into methods that allow anyone at the branch with access to a computer to record the person's name and reason for visit in a "queue." Any staff person who is qualified to handle the request is notified someone is waiting to discuss, for example, an auto loan or a mortgage. Poulton noted that his firm's product also tracks the number of people waiting and how long they have been sitting in the lobby.
The Other Taxation Issue
Dave Pope, SVP-It with SAFE Credit Union, told a recent NACUSO meeting in Las Vegas that Better Branches improves processes, cuts account opening times and reduces errors.
"We wanted to offer this to other credit unions to help them compete better without taxing their staffs. Innovation improves work flow and adds value," he said.
At NACUSO, Poulton said Better Branches is living up to its mission of helping CUs battle larger competitors. He said the CUSO would continue to develop intellectual property.
"We are trying to do our part to help credit unions succeed," Poulton later told the Credit Union Journal. "We can help credit unions improve their lobby traffic, improve hand-offs, or many other hot spots. Financial services has touch points. If someone walks in and cannot be served in an orderly, convenient and private way, it won't be a good experience."
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