Potential Service Advantage for CUs in Better Information on Sites

LAKE BLUFF, Ill.-Banks don't want to provide a lot of answers to basic financial questions on their websites, preferring customers stop by or call a branch-leaving the door wide open for credit unions to further improve their service over banks.

That is the conclusion Moebs $ervices has drawn by comparing data from two of the company's recent surveys, one of financial institutions' websites and another of their call centers. The website study checked to see if sites could answer 15 common consumer transaction questions, ranging from checking availability to overdraft, ATM and NSF fees. Call centers were phoned to check for hold times and to see if staff could answer the same 15 transaction questions.

"What we found in the website study data is that 28% of banks provided the data we were looking for on their websites," said Michael Moebs, economist and CEO. "Credit unions were 12% above the banks at 40%. CUs are already doing better with their website information."

'Cross-Sales Opportunity'

But what signals to Moebs the opportunity is big for credit unions to stand out from banks with their websites, providing clear and timely information, is that bank execs Moebs $ervices interviewed recently explained they prefer to share less website data to common questions to encourage consumers to talk to staff one-on-one. "They see this as a cross-sales opportunity."

Moebs urged credit unions to make their websites an "electronic bulletin board" and make sure all common transaction questions, such as checking pricing, usage and penalty fees, are covered.

Moebs said the move will improve CU efficiency, which not only improves the bottom line but member service as well. He came to that conclusion when comparison of the two studies showed only four FIs in both studies-two credit unions and two thrifts-addressed all 15 questions on their websites and had no call center hold time. The studies each reached out in June to 1,676 institutions with assets of $500 million and greater.

Two CU High-Performers

"These are credit unions that are very efficient and are operating at their economy of scale," explained Moebs. "The CUs are the $1.2-billion Caltech Employees CU (La Canada, Calif.), with non-interest expenses to assets of 90 basis points. The other is the $1.2-billion Whitefish Credit Union (Whitefish, Mont.), whose non-interest expenses to assets is 130 BPs."

Moebs said the finding supports his hypothesis that "the more you beef up the website, the easier time you will have answering your phone, less hold time, and your staff is more productive. All of this leads to greater sales."