There was plenty of sparring in this KnockOut competition, but this was no boxing match.
Eighteen teams took part in PSCU's fifth annual KnockOut Innovation Summit, with blows landing on the bleeding edge of technology in the credit union space. The teams comprised a total of approximately 200 people spread across two locations, and over a 24-hour period they sparred and brainstormed in the hopes of landing the winning haymaker.
"The 2016 KnockOut teams were in it to win it this year," said PSCU Strategic Innovation Program Manager Mindy Weaver. "Often times the teams are more scattered and it takes a few hours for everything to get pulled together. This year, teams instantly began to collaborate, plan and were deeply focused on developing their ideas."
PSCU transforms its St. Petersburg, Fla. headquarters into the "Big Ring" for KnockOut, explained Weaver, who added of the 18 teams, four competed at HawaiiUSA Federal Credit Union's campus in Honolulu, Hawaii.
"We set up workstations for each team throughout PSCU's Atrium and the Innovation Lab," said Weaver. "Coolers of energy drinks can be found scattered around the building, team props proudly displayed, PSCU's coffee shop, MoJoe's, is opened for extended hours and a continuous flow of snacks are provided to help fuel the fight."
The Contenders
Originally inspired by hackathons, the goal of the event is to solve problems in the payments industry that will allow credit unions to better serve their members.
"The event was fun and gave us as a financial institution a chance to behave more like the fintechs that are disrupting the industry," said Michael Borralla speaking for the Tukwila, Wash.-based Team BECU. "We knew we wanted to tackle payments. It's a fragmented and clunky experience for the user and most solutions are expensive for the credit unions because they are value add services provide at no cost to the membership today."
At day's end, five semi-finalists were announced, and Team BECU was among the Florida contingent. Others included Team Pineapple (PSCU),Team Boomshakalaka! (Financial Center First Credit Union) and Team Cajun Power (University of Louisiana Federal Credit Union). Rounding out the list was the Honolulu-based Team Rock'em Sock'em (PSCU and Hawaii State Federal Credit Union).
Team Cajun Power, comprised of one PSCU account executive, one PSCU project consultant and four credit union employees, put forth an "Instant Online Loan Decisioning and Funding" solution.
"Our participants were selected by managers representing each credit union department: operations, lending, accounting and marketing," said University of Louisiana FCU Marketing Specialist Heather Escott DeValcourt. "Our team worked through three ideas, and with questions and discussions with PSCU knowledge experts and the visiting industry consultants, we selected this solution to develop."
Along with plenty of laughs and a steady stream of espresso, Escott DeValcourt added that peanut butter M&Ms helped the team pull the all-nighter. PSCU also offered "quick massages" to participants, which she said was a welcome bonus.
While Team #NextGen didn't place this year, team members said the takeaways were significant.
"No matter what age you are or what job position you are in there is always learning to be done," said Align Credit Union Member Care Center Manager Lindsay Cregg. "We have all grown from this experience for many reasons, the main one being teamwork."
In an effort to better understand the lending needs of the next generation of members, Team #NextGen investigated the credit union median age of membership and thought: "How can we target this next generation that is in or about to be in the prime age of lending."
Cregg said the focus was the millennial generation, who do the majority of their banking on smartphones. "We wanted to make the application process for mortgages and consumer lending as much at-your-fingertips as possible, as well as incorporating cutting edge technology."
Going the Distance
After a long night of developing solutions and binging on food, sugar and caffeine, all teams were required to develop a seven-minute presentation that was judged by a panel comprised of representatives from PSCU, Apple, Projekt 202, First Data, CFE Federal Credit Union, Oceanit and the Hawaii Credit Union.
The five semi-finalists advanced to the second round of judging, the TKO round, which is an internal round of judging allowing PSCU Product Management to review and score the KnockOut ideas, explained Weaver. "TKO is on Wednesday, Sept. 21, the three finalists will be announced following the TKO round, and will then proceed to open voting on the KnockOut website."
The winning team receives a $1,500 travel voucher for their dream vacation. The second place team members receive an iPad Pro and the third place team members receive a $250 Visa gift card. Aside from the prizes and bragging rights, team members may see their winning solution make it to market.
Last year, Team Mo ProActive's Sope Box earned the KnockOut title with its self-serve collections solution. Now called Self-Serve Delinquency Resolution, Weaver said this application is an active PSCU project that is currently going through an enterprise process.
"We've learned that the event is almost — if not as — important as the output. KnockOut is a perfect storm of collaboration, where PSCU, credit unions and PSCU partners all work together to elevate our industry," said Weaver. "PSCU is very focused on the voice of the customer and for us that's the credit unions and their members."
