CALABASAS, Calif. — Someday credit unions' e-services platforms will connect members with suppliers that can save them money.
That's the next wave of financial management services, according to Digital Insight, which is working on this next step, said Sasan Goodarzi, president of Intuit's Digital Insight business. "There is a huge opportunity to take financial management to the next level by connecting members with suppliers to save them money on things they already buy."
Goodarzi shared an example of how a "smart" financial management tool could recognize an opportunity to reduce members' cell phone bills. "Let's say I am paying Verizon online and the credit union creates an opportunity for a supplier to ask me a couple questions and then provide me with an offer for the same coverage for $50 less a month. That is putting money in my pocket and making the credit union more beneficial to me because it's helping me manage my life. The next wave of financial management is about putting insights and actions in peoples' hands, much like what amazon.com does-they know enough about you to make a recommendation. That's where we are headed."
That's a step or two away, according to Goodarzi, who said the immediate opportunity is helping consumers and small businesses manage their financial lives through the personal financial management programs on the credit union's website. "That's where I would not give a high grade to the industry," Goodarzi said. "And the industry needs to get there fairly quickly given the needs of consumers and small businesses."
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Goodarzi said on average consumers visit between four and 20 websites to assemble their financial picture. "So they spend a ton of time trying to piece together their financial life. Consumers want to understand their total financial picture in one place-it doesn't mean all their money is one place, they just want to see how much money they are spending and meet their obligations. Ultimately, they want the capability to save money and time."
The same opportunity exists with small businesses, offered Goodarzi. "Small business owners want to focus on building their business instead of finances. They tell us, 'Help me get paid fast, look professional, and save time.' We help businesses through our Small Business FinanceWorks product and consumers through FinanceWorks."
The evolution of e-services is moving "more slowly than it should," observed Goodarzi. "We have well over 200 financial institutions that are live or implementing personal FinanceWorks, and a good portion are credit unions. Those I give an 'A' for their e-services. Any credit union that has not acquired a financial management service from a reputable company is falling behind. Now's the time to play offense."
