5/5/2018 1 BRING YOUR DIGITAL LENDING INTO THE END ZONE Hawaii Credit Union League Convention May 19, 2018 HELLO! 2 Digital Lending Cortney Angeley Impact Director [email protected]3 W ho W e Are ABOUT FILENE Filene Research Institute conducts research, tests innovative pilot concepts and offers proven solutions that create meaningful impact for credit unions and drive positive change for credit union members. Digital Lending Our research (THINK) + our innovation (DO) + our action (CHANGE) = the secret formula.
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18.5 HCUL Bring Your Digital Lending into the Endzone (1)
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B R I N G YOU R D IGITAL L EN DING I NTO TH E EN D ZON E
Filene Research Institute conducts research, tests innovative pilot concepts and offers proven solutions that create meaningful impact for credit unions and drive positive change for credit union members.
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Our research (THINK)
+ our innovation (DO) + our action (CHANGE)
= the secret formula.
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THINK.
H ow W e W orkA B O U T F I LE N E
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Everything we do is ROOTED IN RESEARCH.
Through innovation, we turn RESEARCH INTO IDEAS.
We put IDEAS INTO ACTION through impact.
DO.
CHANGE.
A C R ED IT U N ION C H AN GED M Y L IFE
That’s me!
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ALW AY S LOOKI NG TO THE FUTURE …
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“Progress is the constant replacing of the best there is with something still better.”
– ED F ILENE
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W HY DO E S E AS E M AT T E R?
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R emember W hen?
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T h e F u t u re is H ere!W H E R E A R E W E H EA D IN G ?
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W H E R E A R E W E H EA D IN G ?
Tech - Sav v y N at iv es are t h e Fu t u re!
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• #8YearOldsAreUsingHashtags
Make Ease of Use Your New Mantra!
I f K eep ing Your M embers M at t ers…W H O ’ S Y O U R C O M P E TIT IO N ?
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P wC ’s Fin an cia l Services Institu te (2 011). Getting to Kn ow Yo u: Bui lding a Cu sto mer-Cen tric Bu sin ess Mod el for Reta il B anks
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T h e Exp erien ce M at t ers
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L E T ’ S RE F L E CT
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→ When has a poor service experience changed where you do business?
The F ilene M et hod
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The F ilene M et hod
In sig h t s Go al
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Identify a problem to solve through the collections of data points.
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H o w M ig h t W e M itig ate t h e Imp act o f St u d en t L o an D eb t f o r C o lleg e St u d en ts?
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N et nography
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Ideat ion Goal
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Find as many solutions to your stated problem as possible, and identify those
worth exploring further.
Ideas � Action
D ebt D ragon
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Ideas � Action
QC ash
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Filene collected data from 5,247 members across 16 credit unions to examine member experiences across 1 of 4 contexts…
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Pred ict in g L o yalt y
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K ey F ind ings & R ecommendations
• Credit Unions excel in consumer lending but struggle if a member applies for a mortgage or joins via the web.
• Consumer lending scores set the standard for mortgage lending and joining the Credit Union.
• Using consumer lending scores as a benchmark will force Credit Unions to honestly assess their bottlenecks.
• Identify consumer lending best practices and seek to replicate them across mortgage lending.
• Set expectations for mortgage lending:
→ Clear statements of process→ Reminders of where the member is
during the process→ Excellent follow ups→ Clear and timely responses to all
questions
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K ey F ind ings & R ecommendations - 2
• Improve the transition between web-application mortgages and human processing
• We found that the poor performance from web-initiated mortgages, with poor handoff and subsequent communication, is negatively impacting members’ willingness to keep using Credit Unions
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W h o D o es it B est ?
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D ominos Pizza!
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St arbucks!
D ecreasin g t h e H assle
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• 56% report having to re-explain an issue
• 57% report having to switch from the web to the phone
• 59% report expending moderate-to-high effort to resolve an issue
• 59% report being transferred
• 62% report having to repeatedly contact the company to resolve an issue
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Loyalt y has a lo t more t o do wit h how well compan ies d eliv er o n th e b asics
• 25% of customers are likely to say something positive about their customer service experience
• 65% are likely to speak negatively• 23% of customers who had a
positive service interaction told 10 or more people about it
• 48% of customers who had negative experiences told 10 or more others
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ARE Y OU MAKI NG THE R I GHT MOV ES?
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1. Attitude is Everything
2. Know What’s Important
3. Frictionless Lending
4. Human vs. Digital Touch
5. Integration
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� Define what digital banking means for your Credit Union
� Know that a definition does not help with deployment - it’s a
mindset and a culture that must be built
� What comes to mind when Credit Union leaders hear the term
“digital banking”?
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Does your Credit Union…
�See “going digital” as an evolution of all financial institutions or
an unnecessary distraction?
�Consider digital a means to an end or an end state?
�Consider digital as a zero-sum game?
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�There will always be reasons to not go digital
�Consider the impact to your Credit Union with regard to attracting
and retaining members
�Consider the gaps between importance and the current level of
satisfaction
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Does Your Credit Union…→ Know its priority items for digital activities?→ Monitor and assess how satisfied members and
employees are based on organizational and member priorities?
→ Have a plan of action to reduce the expectations gap?
→ Know what types of challenges it faces?→ Weigh the downside of not tackling those
challenges?→ Identify when challenges become an excuse for
inertia?→ Have a plan to tackle the challenges?
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“Knowing the member and what they need is priceless… How do we make it easier for the member?”
M E M B E R S E R VI C ES LE A D E R A T A $ 2 0 0 M I L L I O N A U A C R E D I T U N I O N
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�Speed of approval is an attractive
characteristic for your members
�We’re in the world of instant everything!
�In what situation can friction be viewed
positively?
�In what areas can your credit union simplify
the friction and what areas are off limits?
“It’s about the members experiencing fewer points of resistance.”C H I E F LE N D I N G O FF I C E R A T A $ 3 B I LL I O N A U AC R E D I T U N I O N
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In situations where Credit Unions may be at a disadvantage because they are not as fast and/or one step removed (e.g. indirect lending), reducing the friction to a “yes” is extremely important and deemed more of a real help than a potential pitfall.
Does Your Credit Union…� Consider speed to be an important advantage to gain when considering a
digital solution?� Know that a seamless lending process is great, but is still concerned faster
doesn’t always mean better?� Identify sources of needless friction (e.g. too many processes,