Digital Transformation. You know, that thing far off in the future…right? Industry experts spent years trying to inspire action. Some listened. Others were slower to act. Of course, “the best time to plant a tree was 20 years ago. The second best time is now.”
(That might be a Chinese proverb. It might not. That’s the thing with quotes.)
With members spread across a range of demographics, many credit unions could survive with minimal changes. They wouldn’t thrive, but they’d get by.
Most credit unions had digital transformation plans, with some steps completed, others in action, and still more in development phases. While not the best scenario, it seemed workable. There was time. Just so long as no major global event transformed behaviors.
Hmm, what? That’s exactly what happened? Right, COVID-19. I’m sure you’ve heard of it.
Looking to skip all the background and just get to the videos? We got you.
As we watched the virus spread, we mourned for those affected and lost. We celebrated those on the front lines, from healthcare workers to our grocery store staff. Then the economic toll became more clear. Indescribable. Tragic. A new challenge to overcome.
And we did all this while “together” on our computers and devices. Digitally. Zoom went from a business tool (like we use with our clients) to an essential service for friends and family.
Remote trivia nights, Easter gatherings, virtual happy hours. Celebrities entertained us from their own homes. We joined an online beer tasting. It was great, except for toasting the attendees. I’m sorry, iPad.
The new social currency was a FaceTime call or a Zoom meeting URL.
Those of us always online were now on more. (Don’t even look at my Screen Time metrics; they’re embarrassing.) The in-person crowd, now suffering the loss of in-person, even went online.
So many people “dialed in” (who gets that reference?), the web actually slowed down. Sandvine, a network management company, found overall internet traffic grew by more than 40% between Feb. 1 and April 19.
Sure, a lot of that traffic went to streaming services and social media. But not all.
For months, how did someone used to visiting a branch manage their finances?
Digital Transformation Already Happened
Will we ever return to normal? No. But we will find a new normal moving forward that works as social limitations exist. Then, when we can safely interact again, it will be an evolved version of our old normal.
I like this quote from an FIS poll on COVID-19 impacts (emphasis mine):
“The findings indicate that the pandemic has accelerated the digital transformation of banking and commerce, and that these adjustments likely will not be temporary but rather mark a new normal in consumer behavior in a post COVID-19 marketplace.”FIS
Digital transformation happened while your offices were empty.
Out of forced necessity and newfound convenience, more consumers use digital solutions for life’s activities.
That includes their money stuff. You call it financial services. Or banking. Maybe credit unioning? (Only if you’re in Canada. Don’t worry, it didn’t happen.) Whatever you call it, grab a phone or computer and do it:
- Have a paper check? Remote deposit.
- Need to apply for a loan (From 0% emergency loans to government assistance)? Your LOS connects to online banking.
- Basic funds transfer? The mobile app has you covered.
- Finalize a loan and sign the documents? Docusign integration makes it easy from anywhere.
- Have a question? Online chat or old-fashioned phone calls.
A study by payments firm FIS found 45% of banked respondents shifted more towards digital interactions. It’s consistent across generations, too, with 46% of Baby Boomers, 39% of Gen Xers, and 36% of Millennials sharing this response.
Tap, click, or swipe your way to complete needed financial actions. Ready or not, digital transformation is here.
But you are ready. With robust digital platforms, all’s good, right?
Peop…ahem, Technology Helping People?
You know our mission: People Helping People.
What happens when one of those “People” is removed from the process? Member experience is a key part of the credit union “difference”. Most likely, you use a range of technologies to deliver on that promise, even through digital channels.
So all is fine! This whole article was a waste of time! Members get everything they would in person through your website and app. There’s no downside!
Hold all your digital horses.
There is a massive downside we don’t want you to miss. One that could both leave your members and credit union at risk. While also causing a massive loss in non-interest income. Breathe: We have some suggestions and a free solution to help.
Do I have your attention again? Good.
Already convinced? Read the rest later and get your videos now!
Loan Protection Protects Everyone
Payment Protection. GAP. Vehicle Service Contract (or Mechanical Breakdown Coverage). Even Depreciation Coverage. What do each of these products accomplish?
- For the member
- For your credit union
You know those answers. It’s all about protecting members (and your loan) from the unexpected. Some help you become “whole” after a total loss. Others help pay for things that break. All help reduce your delinquency and repossession rates.
How do you convey their existence and importance to members? Traditionally, training focuses on face-to-face closings. The FSR and the member. In person. Sales penetration is best under this personal scenario.
Unfortunately, that’s exactly the situation becoming less common.
Your fully digitized loan system lets members complete a “contactless” application, approval, and even closing. This new “impersonal” process restricts your opportunities to advise and protect members.
Because, let’s be honest: We all just click “skip” on shopping cart add-ons. That’s happening for your ancillary products now, too.
It’s putting members at risk. It’s raising your institution risk. And there goes that non-interest income.
Better explanations and UX (the digital experience) help. We’ve got a more comprehensive answer.
Members Love to Learn. If Entertained.
Your members embrace DIY for a lot today. From making their own bread to researching the best dishwasher, you can get great information before every purchase. That includes auto loans from their credit union.
Members perform their own “due diligence” before even speaking to a salesperson (if it’s even necessary). So all the education they may provide is now lost. Or so you may think. A concept called Content Marketing takes that role.
Content marketing just means that you create and share material to educate on a topic while generating interest. It is not “salesy”. Properly positioned, it can illuminate challenges and drive members toward a possible solution…yours.
What kind of content is best? The easiest to consume. Sandvine found people love video for learning. Explains all those how-to videos on YouTube.
Where to start? Well, if you want our full answer to that…
The solution for your digitally-transformed auto lending is in the next paragraph.
“You’re Special To Us” Video Series
Continuing our expansion of the Learning Library, we’re proud to introduce a new series of B2C member-centric videos.
We call them “You’re Special To Us”. Each video in the series consists of short, attention-grabbing explainers, combining parallax 3D imagery and animated infographics. Their goal? Help borrowers (your members) and their credit unions (that’s you) reduce risk while increasing non-interest income.
The series consists of 5 “universal fit” videos:
- Fully Protected Loan: An overview of all products (and suggestion for members)
- Payment Protection
- Vehicle Service Contract / Mechanical Breakdown Coverage
- Depreciation Coverage
We made each video to help promote your institution, regardless of the vendor your credit union uses.
Helping institutions is our mission, so we want this content in your digital hands. Thus, we’re providing them free to your credit union. Yes, you can include these videos in your digital loan process at no cost.
Even how they’re hosted is up to you. Want to link? That’s fine. Embed through another service? Sure. Though we get you’ll prefer to place them on your own servers. Go right ahead.
Take a look at a quick preview of the videos:
Continue Your Special Member Connection. Download today!
The “You’re Special To Us” video series helps you connect with members through their preferred format. It provides education without selling, and shows your commitment towards their protection.
Include them in targeted emails as well as any text campaigns. Share them on your social media. I hear people are scrolling their feeds just a bit lately…
Get the videos today! We’ll include a complimentary Placement Guide. It offers best practices on, you guessed it, placement across your various channels.
You put your members first. As you pursue your digital transformation, make sure that continues in spirit and practice.
Learning Library Insights
Every topic in our video series gets its own set of articles here on the Learning Library. Whether you want to learn more about Payment Protection or how to choose a VSC provider, we’ve got you covered.
Make sure to Subscribe to the Library so you continue getting these insights.
Blogger. Speaker. Part-time Jedi.
Focused on helping your bank or credit union grow in the face of emerging challenges.