NEW YORK — Credit unions looking to enhance their respective bottom lines have no shortage of vendors vying to prove they have the best-in-breed solutions. To remain competitive and forward-looking, vendors are continually taking proactive measures, including fielding client feedback.
"Our approach is holistic; leveraging the valued relationships we have with our clients, client user groups and committees, focus groups, as well as market research and analysis," said Mark Sievewright, president of credit union solutions at Fiserv. "We work closely with our client user groups and committees, such as our CEO Advisory Boards or Strategic Committees, to ensure we have a constant pulse on the challenges and opportunities our clients are facing on a daily basis."
Bob Legters, SVP-payment products for Fidelity National Information Services, explained that the company is actively engaged in the credit union marketplace on a direct basis via its credit union league relationships, channel partners and engaging in national forums such as CUNA's Governmental Affairs Conference.
"By interacting directly with credit unions we get to hear a first-person perspective of what it takes to ensure their on-going success," said Legters. "The range of information collected really helps ensure that we are pointing our efforts to solutions that empower these important community-based financial institutions."
Chris Gill, senior director of Diebold Advisory Services, explained that for the last six years the company has partnered with Forrester Research to conduct research on consumer channel preferences. This approach has shed new light on member banking pros and cons.
"We participate in quarterly consumer research panels that ask consumers across the U.S. how they prefer to conduct banking transactions of various types, as well as usage of functionality such as direct deposit and debit cards," said Gill.
Like Fiserv, Diebold and FIS, D+H is active at national and regional CU events, according to Tom Berdan, VP-product management and market development.
"We are out and about with our product management team and our client relationship managers will attend these events," said Berdan. "And with our specific products, such as CRM or Ultra Data, we have our own client user meetings."
For third-party solution providers, having access to c-level executives, and those employees in the field, is critical to developing products and services that will enhance member experiences. The ancillary benefit is increasing workflow efficiencies, which is why ongoing user-based client meetings are essential.
At a recent PSCU Member Forum, for instance, the company launched 22 new products, including six mobile applications and a suite of analytics products aimed at helping credit unions better know and serve members.
"We are investing in our technology and product development strategies to enable credit unions to deliver the most helpful service interactions for their members," said PSCU EVP and Chief Creative Officer Fredda McDonald.
The Bottom Line
While vendors are continually seeking ways to enhance products and services, respective methodologies are reaching further than in years past. Like Diebold and Forrest Research, Fiserv's acquisition of Open Solutions has provided the company with access to Raddon Financial Group.
As a result, Sievewright explained that the company is afforded access to leading industry research on technology solutions that identify financial and operating efficiencies.
"The team at Raddon is able to partner with credit unions to analyze their current position, add perspective by performing a peer analysis and identify priority action items and initiatives to drive optimal results," said Sievewright.
Technology that is proving to enhance CUs' bottom lines are person-to-person payments, small business payments and mobile offerings, he said.
"A full suite of payments offerings, combined with mobile solutions, allow credit unions to provide services and channels that appeal to allmember demographics — enabling member acquisition and retention," said Sievewright.
Diebold's Gill explained that a formidable challenge for many credit unions is how to effectively migrate higher-cost transactions, especially deposits and check cashing, from the teller to a self-service device.
To improve operational efficiency and reduce costs, CUs can look to in-lobby terminals to support the human teller line or for use in "teller-less" branches, Gill suggested.
"These advanced function terminals have enabled branch associates to educate members on conducting self-service transactions and created opportunities," said Gill.
Legters explained that FIS's approach to increasing the bottom line is twofold: expense reduction and new product offerings, particularly those aimed at attracting young consumers just starting out and keeping them engaged as they grow.
"This allows clients to recapture revenue from opt-in transaction fees, acquire young customers at a low cost, and retain customers who are increasingly turning to others for services they cannot currently obtain from their primary financial institution."
CUs should also be looking at solutions that allow members to use their mobile phones for everything from cash withdrawals to making an appointment to meet with a financial specialist in the branch to go over more consultative needs, such as insurance, investments and mortgages, Gill advised.
Looking at 2014 and 2015, Berdan explained that D+H will continue its investment in omni-channel banking architectures. He points to market flaws such as solutions that require different login data requirements for mobile, voice, online and branch.
"Our architecture is such that all those products are constructed from the same foundation. We think this is a critical delivery as members switch in between those channels," said Berdan. "So we are also investing in the user experience and we have a team dedicated to that."
Perhaps the biggest ticket item moving forward is cloud-based solutions, noted Berdan. "Cloud is a big area and we are getting a lot of interest from our clients. We are in the process of migrating many clients to cloud-based solutions. This cuts down their IT expense, but more importantly it creates a unified delivery channel of the devices the credit union operates."
