RICHMOND, Va.-The full capabilities of a core-processing platform are often underutilized until a CU is ready to fire on all cylinders.
That does not mean the core is not doing its job. It more likely means that the credit union can negotiate dormant components to be added at later date when the organization matures.
For Call FCU, which has long used Fiserv's Portico core account processing system, this was the case. In recent years, the $360 million-asset credit union began implementing Portico's contact manager, cross-sell and tracking, as well as the loan origination platform (Loancierge) and reporting analytics. This effort has had dramatic results, including personal loan rates growing by more than 60%.
"These were tools that we had but weren't using until we developed more of a sales culture," said Call COO Karen Salmons. "I knew this software was there, but our staff just wasn't ready for it. I knew we would get to the point where we would use it someday."
According to Susan Miller, a Fiserv product strategist, many CUs take a long view when approaching the adoption of a new technology platform. "It's common for our clients to select a total solution, including modules they plan to use further down the road. Most begin using their full solution upon implementation, while others may prefer a phased approach. Integration is at the heart of this question."
While all credit unions have a goal of saving members' money and streamlining respective banking protocols, Call FCU, in conjunction with Fiserv's software, took it one step further.
"Call FCU has taken their employee culture above and beyond with implementation of an approach that educates employees on how to deliver the best value and experience to their members," said Miller.
Salmons explained that a full-time motivational coach was hired to help employees stay focused on making a difference in members' lives. To this end, each new member is assigned a specific CU employee trained to seek cost-saving opportunities, such as lowering interest rates or fees and asking the right questions so that a member's banking experience is fully utilized.
"The members don't come to you like they used to," Salmons noted. "There is so much competition and therefore you really have to reach out to the community to be different. Our staff very much believes in the credit philosophy of people helping people, so our focus was empowering our members' financial independence."
In a concerted effort to show community support, last year the credit union co-hosted the second annual Call Federal Credit Union Marathon Jr., which had more than 800 children participating and supporting Kids Run RVA, Salmons said. In addition, employees contributed 366 service hours to the local Children's Miracle Network, FeedMore's Central Virginia Food Bank, the Richmond Animal League and Virginia Blood Services, among others.
"We participate in community activities so we can be seen more by younger families," said Salmons. "We started off as credit union for a manufacturing company and of course that population is aging and not repopulating as they did in the past."
For employees and managers, having a fully integrated single sign-on capability that tracks all banking data has been critical. And the effort is bearing fruit. In 2013, the CU saved members more than $3.7 million in finance charges, according to Salmons. This number is forecasted to increase to more than $4 million in 2014.
As a way to advertise these savings to its approximate 29,000 members, monitors have been installed in the credit union's four branches displaying the numbers-the exact opposite effect of the National Debt Clock in New York's Times Square.
In early April, the member interest savings was $3,766,361.57 and payment savings was $69,130.84. When it came to loans statistics, the numbers were equally encouraging. In the two-year period between January 2012 to January 2014, the credit union's vehicle loans grew 40%. This loan category is heavily advertised and an employee sales focus.
Even more impressive-personal loans, which are never advertised and not considered a core competency-grew by 62% in the same time period. "This is organic growth just by employees having the information and talking to members. I knew we had good growth in loans, but I didn't realize the impact that this culture utilizing the systems we already had was having," said Salmons. "I had my numbers double-checked because this is truly amazing."
Looking back on the experience, Salmons said if other credit unions are in the process of seeking a core platform, they should take a long view. "When we negotiate our contracts, if there are any products or services that we may think we could use during that contract period, I will typically try to have it added it even though I know I might not use it immediately," she said. "This way we get the best deals."
