LAS VEGAS — With the manner in which credit unions and their members interact changing with every technological development, CUs need to master the art of outreach.
"With the emergence of technologies we are seeing substantial decreases in contacts in our retail locations, so we have to be able to reach out to members who are not coming to us," said Steve Langley, VP of sales and service for $2.2 billion Travis CU, Vacaville, Calif., during the CUNA Operations, Sales and Service Council's recent annual conference here. "Not one of my colleagues says they have more branch traffic. How do we interact with thosemembers?"
The answer, he continued, is outreach. "We have to be able to go to them, either through marketing channels, outbound calling or offering specialized services such as financial checkups. We have to build the relationship that we are not getting face to face."
Langley, who also is the chair of the executive committee for the CUNA OpSS Council, told Credit Union Journal professionals in those three areas face a "multitude of challenges going forward."
Self-Service Channels
At the same time, Langley said CUs can do a better job of helping members who still visit their brick-and-mortar locations. He said it is important to swiftly expedite visits for those who need to do transactions, so employees can spend more time with those who need assistance with more complicated matters, such as mortgages, insurance or financial planning.
"We have to figure out how to create a self-service channel for members who come into the branches so they can handle transactions on their own. The folks in the branches are there for advocacy — to help the members," he said. "The solution is a multi-tiered approach that requires a different type of employee. We are getting ready to open a branch that features kiosks, and higher-compensated, higher-caliber employees. Our employees are better equipped to serve our members."
Mobile banking is "eat or be eaten," Langley appraised. He said if CUs "do not join the race they will get run over."
The big banks "obviously have the economies of scale, and they are running TV commercials showing how easy it is to do business with them — we have to do the same," he asserted. "Being on board with mobile is as mandatory as adding ATMs was in the 1970s."
But with that said, Langley noted branches still have not outlived their usefulness, despite decades of predictions of their imminent demise. At Travis CU, there remain a number of members who want to come in and use the teller line, he pointed out.
"Members still want a human touch, and there always will be a place for that contact," he said. "From a sales perspective, we have to create sophisticated processes to allow cross-selling on mobile or online channels."
Leading the Charge
CUs need to keep up with the technology that is put before them, Langley stated, and decide if "we are going to be followers or leading the charge." He said Travis CU is going to put more emphasis on mobile banking and those types of touch points.
"Ideally, we want to create really well-equipped employees who can take members to the next level when it comes to improving their financial lives."
Credit unions should not put down their guard down with competitors such as Walmart or Amazon that want to "dabble" in the financial services industry, he asserted.
"Our credit union offers an account that works like a prepaid card. Members can load the card, no checks, no overdraft — if the money is not there it does not get approved," he explained. "Credit unions need to have these types of alternatives available if they wish to compete going forward."
