Best Practices Awards 2017
October 16, 2017 8:45 AM
Innovation coupled with proven results
Credit Union Journal’s Best Practices Awards program is a treasure trove of proven, results-driven strategies aimed at boosting growth, improving efficiency, cutting costs, enhancing member service, living the CU philosophy and driving revenue.
Just as important, they must be scalable and adaptable so readers can model their own programs off of these great ideas. This program is designed not to offer accolades to individuals but to recognize innovations that have shown real-world results.
Read on to learn 17 strategies that were developed and field tested by your colleagues that you can tailor for your own operation.
Just as important, they must be scalable and adaptable so readers can model their own programs off of these great ideas. This program is designed not to offer accolades to individuals but to recognize innovations that have shown real-world results.
Read on to learn 17 strategies that were developed and field tested by your colleagues that you can tailor for your own operation.
James Michael Kruger/Photo James Michael Kruger
TruStone Financial revs up auto lending
Credit union: TruStone Financial FCU
Location: Plymouth, Minn.
Assets: $1.2 billion
Category: Auto Loan Refinance
Nominated by: TruStone Financial
By transitioning its marketing and communications department to a “data-driven” marketing team, TruStone Financial Federal Credit Union has been able to increase its auto loan penetration rate.
Location: Plymouth, Minn.
Assets: $1.2 billion
Category: Auto Loan Refinance
Nominated by: TruStone Financial
By transitioning its marketing and communications department to a “data-driven” marketing team, TruStone Financial Federal Credit Union has been able to increase its auto loan penetration rate.
THINKing pays off for TruChoice
Name: TruChoice Federal Credit Union
Assets: $119.3 million
Location: South Portland, Maine
Category: Process Improvement
Nominated by: TruChoice Federal Credit Union
TruChoice Federal Credit Union implemented a centralized approach to ensuring process improvement and internal efficiency with its THINK program. Carried out by the CU’s staff, known as TruCrew, THINK is an acronym for for:
· Take it to the Next Level: We want to go the extra mile to make things work better.
· Hours & Money: Does it make “cents?”
· Inquiry + Ideas= Innovation: We are the drivers of our success, not passengers!
· Not Your Grandma’s Processes: We want to succeed tomorrow, not just today.
· Keep An Open Mind: We embrace change as a vehicle toward progress.
With no budget, the TruCrew accepted ideas from all areas of the organization. More than 200 ideas were submitted and THINK has resulted in annual savings of $116,845, approximately 70 percent of which is in recurring expenses and 755 hours of work saved per year.
Assets: $119.3 million
Location: South Portland, Maine
Category: Process Improvement
Nominated by: TruChoice Federal Credit Union
TruChoice Federal Credit Union implemented a centralized approach to ensuring process improvement and internal efficiency with its THINK program. Carried out by the CU’s staff, known as TruCrew, THINK is an acronym for for:
· Take it to the Next Level: We want to go the extra mile to make things work better.
· Hours & Money: Does it make “cents?”
· Inquiry + Ideas= Innovation: We are the drivers of our success, not passengers!
· Not Your Grandma’s Processes: We want to succeed tomorrow, not just today.
· Keep An Open Mind: We embrace change as a vehicle toward progress.
With no budget, the TruCrew accepted ideas from all areas of the organization. More than 200 ideas were submitted and THINK has resulted in annual savings of $116,845, approximately 70 percent of which is in recurring expenses and 755 hours of work saved per year.
Hughes FCU adopts biometrics for increased efficiencies
Credit union: Hughes Federal Credit Union
Location: Tucson, Ariz.
Assets: $1.1 billion
Category: Biometrics
Nominated by: Fiserv
By implementing biometric authentication palm readers, Hughes Federal Credit Union employees respectively save roughly 15 minutes per day in login-related time.
Location: Tucson, Ariz.
Assets: $1.1 billion
Category: Biometrics
Nominated by: Fiserv
By implementing biometric authentication palm readers, Hughes Federal Credit Union employees respectively save roughly 15 minutes per day in login-related time.
How Royal CU boosted MBLs
Credit union: Royal CU
Location: Eau Claire, Wis.
Assets: $2 billion
Category: Member Business Lending
Nominated by: Baker Hill
The $2 billion Eau Claire, Wis.-based credit union is ranked sixth for highest volume of business loans for credit unions nationwide and currently maintains a $708 million business loan portfolio. In an effort to make loan applications easier, the CU turned to the Carmel, Ind.-based Baker Hill, a loan origination software and bank lending solutions firm. As a result of that partnership, the credit union has processed more thanl $35 million in MBLs through the platform.
Location: Eau Claire, Wis.
Assets: $2 billion
Category: Member Business Lending
Nominated by: Baker Hill
The $2 billion Eau Claire, Wis.-based credit union is ranked sixth for highest volume of business loans for credit unions nationwide and currently maintains a $708 million business loan portfolio. In an effort to make loan applications easier, the CU turned to the Carmel, Ind.-based Baker Hill, a loan origination software and bank lending solutions firm. As a result of that partnership, the credit union has processed more thanl $35 million in MBLs through the platform.
Royal CU streamlines mortgage process
Credit union: Royal CU
Location: Eau Claire, Wis.
Assets: $2 billion
Category: Loan Processing
Nominated by: Self
With a significant number of new loans sold to Fannie Mae each year, Royal Credit Union’s employees began to voice concerns about the increasing complexity in the Fannie Mae guidelines, which made the home loan process time consuming and cumbersome. Working in concert with Fannie Mae, however, the credit union streamlined processes and increased efficiencies to the point where it can process an additional 27 loans per month. The number of loans sold to Fannie Mae has also risen by 43 percent.
Location: Eau Claire, Wis.
Assets: $2 billion
Category: Loan Processing
Nominated by: Self
With a significant number of new loans sold to Fannie Mae each year, Royal Credit Union’s employees began to voice concerns about the increasing complexity in the Fannie Mae guidelines, which made the home loan process time consuming and cumbersome. Working in concert with Fannie Mae, however, the credit union streamlined processes and increased efficiencies to the point where it can process an additional 27 loans per month. The number of loans sold to Fannie Mae has also risen by 43 percent.
SMILE, you're a member of TruChoice FCU
Name: TruChoice Federal Credit Union
Assets: $119.3 million
Location: South Portland, Maine
Category: Member Service
Nominated by: Self
The credit union's member service program is emphased by its name -- SMILE, an acronym that summarizes the member service standards of the organization and helps it live up to its brand promise to bank simply. The acronym stands for:
· Show Enthusiasm: Believe in the value TruChoice offers.
· Make Life Easier: We’re here to help people untangle their finances.
· Invite Them to Share: Find out what matters to them—what are their goals?
· Let Them Know You Care: Show them we are a partner, not just their banker.
· Exceed Expectations: Win their hearts and minds. Follow up and follow through.
Assets: $119.3 million
Location: South Portland, Maine
Category: Member Service
Nominated by: Self
The credit union's member service program is emphased by its name -- SMILE, an acronym that summarizes the member service standards of the organization and helps it live up to its brand promise to bank simply. The acronym stands for:
· Show Enthusiasm: Believe in the value TruChoice offers.
· Make Life Easier: We’re here to help people untangle their finances.
· Invite Them to Share: Find out what matters to them—what are their goals?
· Let Them Know You Care: Show them we are a partner, not just their banker.
· Exceed Expectations: Win their hearts and minds. Follow up and follow through.
Banking is all in the family for Tech CU
Name: Technology CU
Assets: $2.4 billion
Location: San Jose, Calif.
Category: Family Banking
Nominated by: Self
Tech CU developed Family Banking, which launched in May 2016. The product is designed to simplify financial transactions between family members by allowing both a parent and child to link their accounts, transfer money, track balances and monitor transactions – all at no charge.
Assets: $2.4 billion
Location: San Jose, Calif.
Category: Family Banking
Nominated by: Self
Tech CU developed Family Banking, which launched in May 2016. The product is designed to simplify financial transactions between family members by allowing both a parent and child to link their accounts, transfer money, track balances and monitor transactions – all at no charge.
Masterfile (Royalty-Free Div.)
Tech CU takes card program in-house
Name: Technology CU
Assets: $2.4 billion
Location: San Jose, Calif.
Category: In-House Credit Cards
Nominated by: Self
In August 2016, Tech CU began offering in-house credit cards. Based on member feedback and research, the management team knew more than half of American consumers hold their main credit card with their primary financial institution. Although many members use Tech CU as their PFI, the lack of a credit card component was perceived as an “inconvenience.”
By offering an in-house card, Tech CU said, it became possible to give members a snapshot of all of their finances in one place, including deposits, loans and credit cards. The new program also simplified paying balances online or in-branch – something members could not do through the third party – and categorizing credit card expenditures, and widened the breadth and depth of Tech CU’s product offerings.
Assets: $2.4 billion
Location: San Jose, Calif.
Category: In-House Credit Cards
Nominated by: Self
In August 2016, Tech CU began offering in-house credit cards. Based on member feedback and research, the management team knew more than half of American consumers hold their main credit card with their primary financial institution. Although many members use Tech CU as their PFI, the lack of a credit card component was perceived as an “inconvenience.”
By offering an in-house card, Tech CU said, it became possible to give members a snapshot of all of their finances in one place, including deposits, loans and credit cards. The new program also simplified paying balances online or in-branch – something members could not do through the third party – and categorizing credit card expenditures, and widened the breadth and depth of Tech CU’s product offerings.
How Northrup Grumman boosted loans
Credit union: Northrop Grumman FCU
Assets: $1.1 billion
Location: Gardena, Calif.
Category: Loan Origination
Nominated by: LSI
While Northrop Grumman Federal Credit Union’s members were receiving communication that their loans were approved, there was a gap connecting members to loan processors.
Since adopting LSI's Hot Transfer program, the CU’s loan approval percentage have risen from 62 percent in 2016 to 66 percent at the end of the first quarter in 2017. A 12-point increase in used auto loan approval (from 42 percent to 54 percent) was also realized.
Assets: $1.1 billion
Location: Gardena, Calif.
Category: Loan Origination
Nominated by: LSI
While Northrop Grumman Federal Credit Union’s members were receiving communication that their loans were approved, there was a gap connecting members to loan processors.
Since adopting LSI's Hot Transfer program, the CU’s loan approval percentage have risen from 62 percent in 2016 to 66 percent at the end of the first quarter in 2017. A 12-point increase in used auto loan approval (from 42 percent to 54 percent) was also realized.
Direct FCU ask staff for input
Credit union: Direct FCU
Location: Needham, Mass.
Assets: $580 million
Category: Custom App for Employees
Nominated by: Self
In an effort to engage employees, Direct Federal Credit Union developed DirectThinker, an app that allows employees to submit ideas on how business operations could be improved. To date, 143 ideas have been submitted by more than 50 percent of staff.
Location: Needham, Mass.
Assets: $580 million
Category: Custom App for Employees
Nominated by: Self
In an effort to engage employees, Direct Federal Credit Union developed DirectThinker, an app that allows employees to submit ideas on how business operations could be improved. To date, 143 ideas have been submitted by more than 50 percent of staff.
Financial Resources FCU's membership boost
Credit union: Financial Resources Federal Credit Union
Location: Bridgewater, N.J.
Assets: $453 million
Category: Membership Growth
Nominated by: Haberfeld Associates
By implementing member acquisition strategies targeted at checking and loan relationships, Financial Resources Federal Credit Union increased its core membership growth significantly.
Location: Bridgewater, N.J.
Assets: $453 million
Category: Membership Growth
Nominated by: Haberfeld Associates
By implementing member acquisition strategies targeted at checking and loan relationships, Financial Resources Federal Credit Union increased its core membership growth significantly.
How Public Service CU improved its cybersecurity efforts
Credit union: Public Service CU
Location: Lone Tree, Colo.
Assets: $1.8 billion
Category: Cybersecurity
Nominated by: DefenseStorm
When approaching security analytics and incident response, Public Service Credit Union faced various challenges with resources, such as log retention, data storage, administration/management and a designated FTE to perform required duties.
“We needed a solution that made sense for our environment, satisfied our requirements, addressed our challenges, but also enhanced our capabilities,” said PSCU Vice President of Information Technology Carlos Vazquez (pictured above).
The $1.8 billion Lone Tree, Colo.-based PSCU turned to DefenseStorm, a cloud-based cybersecurity solutions firm in Seattle. In addition to proactive monitoring, Vazquez explained that DefenseStorm provides access to real-time threat intelligence, which allows PSCU to conduct timely forensic analysis.
Location: Lone Tree, Colo.
Assets: $1.8 billion
Category: Cybersecurity
Nominated by: DefenseStorm
When approaching security analytics and incident response, Public Service Credit Union faced various challenges with resources, such as log retention, data storage, administration/management and a designated FTE to perform required duties.
“We needed a solution that made sense for our environment, satisfied our requirements, addressed our challenges, but also enhanced our capabilities,” said PSCU Vice President of Information Technology Carlos Vazquez (pictured above).
The $1.8 billion Lone Tree, Colo.-based PSCU turned to DefenseStorm, a cloud-based cybersecurity solutions firm in Seattle. In addition to proactive monitoring, Vazquez explained that DefenseStorm provides access to real-time threat intelligence, which allows PSCU to conduct timely forensic analysis.
Nutmeg State's core conversion and RDC boost
Name: Nutmeg State Financial Credit Union
Location: Rocky Hill, Conn.
Assets: $425 million
Category: Digital Strategy
Nominated by: Alogent
As part of a three-year strategic plan to modernize delivery and service levels, Nutmeg State Financial Credit Union added a new core system and digital banking platform, which has increased mobile adoption rates significantly and doubled its remote deposit capture (RDC) channel intake.
Location: Rocky Hill, Conn.
Assets: $425 million
Category: Digital Strategy
Nominated by: Alogent
As part of a three-year strategic plan to modernize delivery and service levels, Nutmeg State Financial Credit Union added a new core system and digital banking platform, which has increased mobile adoption rates significantly and doubled its remote deposit capture (RDC) channel intake.
Passman, Aaron
Greater Nevada's business lending program
Name: Greater Nevada CU
Assets: $729 million
Location: Carson City, Nev.
Category: Small Business Lending
Nominated by: Self
The $729 million CU, based in Carson City, Nev., has an award-winning small business lending program that is booking loans in Louisiana – a state that is far from Nevada’s deserts and mountains in nearly every way.
Greater Nevada Credit Union has had a great deal of success participating in a lending program through the U.S. Department of Agriculture. Not only did the USDA program grow Greater Nevada’s loan portfolio, the CU said it controlled risk because the USDA typically guarantees up to 80% of the loan. The loans are revenue generators, GNCU added, carrying interest rates between 5 percent and 6 percent.
Assets: $729 million
Location: Carson City, Nev.
Category: Small Business Lending
Nominated by: Self
The $729 million CU, based in Carson City, Nev., has an award-winning small business lending program that is booking loans in Louisiana – a state that is far from Nevada’s deserts and mountains in nearly every way.
Greater Nevada Credit Union has had a great deal of success participating in a lending program through the U.S. Department of Agriculture. Not only did the USDA program grow Greater Nevada’s loan portfolio, the CU said it controlled risk because the USDA typically guarantees up to 80% of the loan. The loans are revenue generators, GNCU added, carrying interest rates between 5 percent and 6 percent.
David Underwood
Knoxville Teachers FCU's e-signature platform
Name: Knoxville Teachers Federal Credit Union
Assets: $206 million
HQ location: Knoxville, Tenn.
Category: Remote Lending
Nominated by: IMM, Rahway, N.J.
In order to compete better in an area with a limited membership pool (local educators), the $206 million Knoxville Teachers Federal Credit Union of Knoxville, Tenn., created an end-to-end loan application that can be accessed, completed and signed by members from any location, at any time of day.
For more information, click here.
Assets: $206 million
HQ location: Knoxville, Tenn.
Category: Remote Lending
Nominated by: IMM, Rahway, N.J.
In order to compete better in an area with a limited membership pool (local educators), the $206 million Knoxville Teachers Federal Credit Union of Knoxville, Tenn., created an end-to-end loan application that can be accessed, completed and signed by members from any location, at any time of day.
For more information, click here.
Coastal FCU's remote teller system
Name: Coastal Federal Credit Union
Assets: $2.9 billion
Location: Raleigh, N.C.
Category: Branch Management
Nominated by: La Macchia Group, Milwaukee, Wis.
Six years ago, Coastal Federal Credit Union embraced video-based personal teller machines to reduce personnel needs at its branches while maintaining face-to-face interactions through advanced technology.
Adoption of video tellers across the organization has allowed Coastal to increase available teller hours by 86 percent. The technology has also helped the credit union serve members with 40 percent less staff than branches with traditional over-the-counter tellers. These innovations have also led to more members and shorter lines -- a very happy combination for the credit union. Coastal’s Teller Transaction Score on the Net Promoter Survey has consistently been above 70 percent throughout 2017. The Carrboro branch specifically has nearly quadrupled its membership, from 485 at the end of Oct. 2016 to 1,660 at the end of June 2017. Between June 2016 and June 2017, the number of deposits at the branch tripled.
For more information, click here.
Assets: $2.9 billion
Location: Raleigh, N.C.
Category: Branch Management
Nominated by: La Macchia Group, Milwaukee, Wis.
Six years ago, Coastal Federal Credit Union embraced video-based personal teller machines to reduce personnel needs at its branches while maintaining face-to-face interactions through advanced technology.
Adoption of video tellers across the organization has allowed Coastal to increase available teller hours by 86 percent. The technology has also helped the credit union serve members with 40 percent less staff than branches with traditional over-the-counter tellers. These innovations have also led to more members and shorter lines -- a very happy combination for the credit union. Coastal’s Teller Transaction Score on the Net Promoter Survey has consistently been above 70 percent throughout 2017. The Carrboro branch specifically has nearly quadrupled its membership, from 485 at the end of Oct. 2016 to 1,660 at the end of June 2017. Between June 2016 and June 2017, the number of deposits at the branch tripled.
For more information, click here.
Advantage One boosts loans by 20 percent
Name: Advantage One Credit Union
Location: Brownsville, Mich.
Assets: $142 million
Category: Sales & Service
Nominated by: cuStrategies
With a two-pronged approach, Advantage One Credit Union has helped members manage their financial well-being and gain access to low-interest loans, all while growing the credit union’s bottom line.
“We are not in the business of adding more debt to people who come to us,” said Advantage One CEO Chris Corkery (pictured above). “We are looking for ways to lower their monthly payments on loans they have with other financial institutions and help them reduce their debt.”
As a result of the a lending program, the credit union experienced 26 percent loan growth in 2015 and over 20 percent loan growth in 2016 with its ROA increasing during that timeframe, noted Corkery.
Location: Brownsville, Mich.
Assets: $142 million
Category: Sales & Service
Nominated by: cuStrategies
With a two-pronged approach, Advantage One Credit Union has helped members manage their financial well-being and gain access to low-interest loans, all while growing the credit union’s bottom line.
“We are not in the business of adding more debt to people who come to us,” said Advantage One CEO Chris Corkery (pictured above). “We are looking for ways to lower their monthly payments on loans they have with other financial institutions and help them reduce their debt.”
As a result of the a lending program, the credit union experienced 26 percent loan growth in 2015 and over 20 percent loan growth in 2016 with its ROA increasing during that timeframe, noted Corkery.
