volume 1 - creditunionbusiness.com · nick brown 16 branch strategies branch robots and the hype of...

THE ONLY ALL-BUSINESS RESOURCE FOR BANKS AND CREDIT UNION BRANCHES

T H E B R A N C H T E C H N O L O G Y I S S U EMAY 2018 | VOLUME 1 | ISSUE 5

Branch Robots and the Hype of Tomorrow Can Hold You Back!CHAD DAVISFEATURED BRANCH

UWCU’S NEW BERLIN, WI.

https://creditunionbusiness.com/membership-account/membership-checkout/?level=21

B R A N C H B U S I N E S S | M A Y 2 0 1 8 | C U B U S I N E S S . C O M

MAY 2018 | VOLUME 1 | ISSUE 5TABLE OF CONTENTS

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7 EDITORS POV Title here and here Tim O’Hara

8 STAFFING Q&A Staffing Challenge Hiring for today’s branch staff Jim Romeo

12 IN-BRANCH PRODUCT SALES Becoming a Great Sales Coach Nick Brown

16 BRANCH STRATEGIES Branch Robots and the Hype of Tomorrow Can Hold You Back! Chad Davis

19 BRANCH BUSINESS Indirect Auto Lending Best Practices

Kaitlin Morrison


22 OPINION Why Bank of America’s Fee Hike is Bad for Communities, Consumers and the Economy Gabe Krajicek

26 BRAND TECHNOLOGY Network Visibility A conversation with Jay Botelho of Savvius Jim Romeo

28 BRAND INITIATIVES “Member Banking Is Better Banking®” Captures The Theme Of Brand Initiative Randi Marmer

32 BRANCH BUSINESS Virtual Tellers Two Managers Tell Us How They Keep Branches Personal Kaitlin Morrison

35 BRANCH BUSINESS Modernizing the Branch Experience Starts with Core Murthy Veeraghanta

38 BRAND TECHNOLOGY Alexa, How Much Is in My Checking Account? Jim Romeo

http://cu4kids.org/


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ABOUT US

SUBSCRIPTIONSBRANCH BUSINESS is published monthly

(12 issues per year) by The Banking BUSINESS

Network, LLC. A one-year Digital membership is

$75/yr. An online membership form is available at

www.cubusiness.com/register.

TEAMBUILDERhttps://creditunionbusiness.com/the-team-builder/

SALES AND ADVERTISINGTim O’Hara, Publisher

[email protected] or 561-282-6015 #1

CONTACT INFORMATION Credit Union BUSINESS Magazine

P.O. Box 2223, Palm Beach, FL 33480

(561) 282-6015 | (561) 588-7711 (fax)

[email protected]


T H E B R A N C H T E C H N O L O G Y I S S U EMAY 2018 | VOLUME 1 | ISSUE 5

Branch Robots and the Hype of Tomorrow Can Hold You Back!CHAD DAVISFEATURED BRANCH

UWCU’S NEW BERLIN, WI.

PUBLISHING TEAMTim O’Hara, Publisher

[email protected]

Kaitlin Morrison, Editorial Director

[email protected]

Ashok Kumar, Associate Publisher

[email protected]

Patti Manzone, Designer

BRANCH BUSINESS TEAM

Nick Brown

Chad Davis

Gabe Krajicek

Randi Marmer

Kaitlin Morrison

Jim Romeo

Murthy Veeraghanta


http://www.cubusiness.com/register

https://creditunionbusiness.com/the-team-builder/SALES



mailto:[email protected]






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TABBY TIM O’HARA

86,000+ New Eyes on Branch BUSINESS Since January!

POV

S ince we launched Branch BUSINESS eMagazine in January, we’ve had an incredibly positive reaction from our fast-growing readership. In fact, 42,198 branch managers and 1,226 branch

supervisors from banks and credit unions in all parts of the USA have been added to our readership list since Vol. 1 Number 1 was published just five months ago. In spite of reading many doom and gloom predictions that the branch is dead, there is plenty of evidence that branches are thriving! The cover graphic of this issue is a photograph of a newly constructed branch of the University of Wisconsin Credit Union’s (UWCU) 25th full service branch in New Berlin, near Milwaukee. And, to prove this point, we’ll endeavor to put a new branch on each cover of Branch BUSINESS in the future. The good old Questions and Answers (Q&A format) is an excellent way to extract good information from experts on branch management, and we’ll also feature a new monthly Q&A column for Branch BUSINESS in every issue. Beginning on the next page is a Q&A interview about the all-important topic of branch staffing. Veteran freelance writer Jim Romeo, who worked with me a dozen years ago, returns to interview Eileen Nolan, EVP of Nassau Educators Federal Credit Union (NEFCU), on Long Island, NY. NEFCU is a nearly $3 billion (assets) financial institution with 15 branches, four of them coming online this year.

Just in the nick of time (pun) is our sales training expert, Nick Brown, one of the busiest guys in branch training, specializing in the all-important sales function. I’ve noticed a growing trend of branch manager titles putting a new emphasis on “sales manager”(see Rosemar Augular on page two). In this issue, Nick outlines four areas to improve your sales coaching. Beginning on page 16, Chad Davis lays the groundwork for mixing the branch latest technology with the human touch. Branch operations will not soon be taken over by machines, but will require a balance of the two. I’ve noticed that this issue is a little top-heavy with credit union branch reporting, but as we prepare to launch our third publication this summer, Bank BUSINESS, with its’ emphasis on community banking operations, the editorial here will be more evenly split between the two types of financial institutions, but the information published here is always the best for the BUSINESS of running a successful BRANCH! Finally, a reminder that we’re always on the lookout for good story ideas about how to make branch operations more successful, and if you have any suggestions for me, please contact me directly. [email protected] or, call me at 561-282-6016. I look forward to hearing from you.

Thanks for reading!

Tim

http://cubusiness.com


BY JIM ROMEO

Staffing Challenge Hiring for today’s branch staff A conversation with Eileen Nolan, EVP, Chief Marketing and Sales Officer for NEFCU Credit Union

STAFFING Q&A

8

F or branch managers, the human element

and human capital are some of the greatest

assets in successfully running a branch and

serving its members and customers. Any

branch manager faces many challenges in

finding the right staff for the right positions.

Eileen A. Nolan is the EVP Chief Marketing and Sales Officer for NEFCU Credit Union in Westbury, New York. We spoke to Eileen to gain insight into the

challenges of staffing credit union branches. Here’s how our conversation went.

Branch Business: From your perspective, how great is

the challenge of staffing and hiring for today’s branch staff?

Eileen Nolan: While our salaries are in line with

the competition, it can be challenging to match the

competencies needed for phone and branch service

positions. The current low level of unemployment is

also a factor as there are many employers competing

for qualified candidates. However, our salaries are competitive and we have the unique added value of

providing both a pension and 401K program. One of

the ways we look to differentiate as an employer is to

ensure that our branch positions provide opportunities

for cross-training and career growth so that we

retain the talent we hire. We look at aspects such as

a competitive tuition reimbursement programs and

employer of choice initiatives as a means by which

we support and retain our employees. One of the most

demanding aspects of our hiring process is our strong

expectation that candidates exude confidence in having conversations with our members about products and

services and possess a level of active listening and

verbal communication skills that represent our brand.

We significantly invest in training and ongoing coaching milestones to ensure that our new hires are

supported in ensuring expectations are met.

Branch Business: What are some of the hardest

positions to fill and why do you feel they are difficult to fill?

Eileen A. Nolan, EVP Chief Marketing and Sales Officer for NEFCU Credit Union

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STAFFING Q&A

Eileen Nolan: Branch management openings are

difficult to fill, mainly due to salary competition from commercial banks and also due to finding candidates with the service mindset that is core to our culture.

Additionally, we look to our branch managers to be

effective advocates of the community with considerable

followings, networking strengths and leadership skills.

Our products and services are highly-competitive

and we look to our branch managers to be able to

communicate this effectively as well as help others do

similarly. Our managers are role models of service and

expertise, particularly in understanding how the credit

union business model, a model that is not beholden

to shareholder dividends, is directly correlated to our

ability to serve and deliver value.

Branch Business: What advice could you share with

regard to hiring and staffing your branch and branches?

Eileen Nolan: Work history and performance are

certainly important, but we also very strongly seek

and hire attitude, enthusiasm and willingness to

learn and develop. It’s easier to train someone in the responsibilities of a position, but harder to change a

person’s attitude toward serving others.

Branch Business: What does the future look like for

branch staffing in the next 3-5 years?

Eileen Nolan: Given the emergence of online and

mobile technologies, we remain deeply committed

to branch distribution and, in fact, are growing and

investing in our branch distribution channel. This year,

we opened a new branch in Oceanside with branches

in Uniondale, Northport, Huntington Village and potentially Freeport being completed by the end of this

year. We are in the process of actively doubling our

branch footprint to serve even more LI communities.

We respect and foster a branch environment that affords

opportunity to develop relationships with members

and their bankers and believe that branches are vital.

We support that there is a strong intersect between the

continuing expanse of our branch delivery channel

and our continuing investment in the technology that

drives efficiency, i.e. providing more opportunities for our members to choose their channel for service.

Branch Business: Anything else you’d like to provide that the above has not given you the opportunity to

express?

Eileen Nolan: We continue to be committed to Long

Island and being an employer of choice here. We

have made the decision to centralize our call center

and ITM teller operation here, with strong plans for

continuing growth. Many other competitors outsource

these jobs elsewhere off Long Island. Our state-of-

the art member contact center, located just over a

mile from our Westbury HQ, is replete with training centers, conference rooms, plasma screens, employee

lunchrooms and lounges, charging bars, etc.Branch

management openings are difficult to fill, mainly due to salary competition from commercial banks and also

due to finding candidates with the service mindset that is core to our culture. Additionally, we look to our branch

managers to be effective advocates of the community

with considerable followings, networking strengths and

leadership skills. Our products and services are highly-

competitive and we look to our branch managers to be

able to communicate this effectively as well as help

others do similarly. Our managers are role models of

service and expertise, particularly in understanding

how the credit union business model, a model that

is not beholden to shareholder dividends, is directly

correlated to our ability to serve and deliver value.

Branch Business: What advice could you share with

regard to hiring and staffing your branch and branches?

Eileen Nolan: Work history and performance are

certainly important, but we also very strongly seek

and hire attitude, enthusiasm and willingness to

learn and develop. It’s easier to train someone in the


11

responsibilities of a position, but harder to change a

person’s attitude toward serving others.

Branch Business: What does the future look like for

branch staffing in the next 3-5 years?

Eileen Nolan: Given the emergence of online and

mobile technologies, we remain deeply committed

to branch distribution and, in fact, are growing and

investing in our branch distribution channel. This year,

we opened a new branch in Oceanside with branches

in Uniondale, Northport, Huntington Village and potentially Freeport being completed by the end of this

year. We are in the process of actively doubling our

branch footprint to serve even more LI communities.

We respect and foster a branch environment that affords

opportunity to develop relationships with members

and their bankers and believe that branches are vital.

We support that there is a strong intersect between the

continuing expanse of our branch delivery channel

and our continuing investment in the technology that

drives efficiency, i.e. providing more opportunities for our members to choose their channel for service.

Branch Business: Anything else you’d like to provide that the above has not given you the opportunity to

express?

Eileen Nolan: We continue to be committed to Long

Island and being an employer of choice here. We

have made the decision to centralize our call center

and ITM teller operation here, with strong plans for

continuing growth. Many other competitors outsource

these jobs elsewhere off Long Island. Our state-of-

the art member contact center, located just over a

mile from our Westbury HQ, is replete with training centers, conference rooms, plasma screens, employee

lunchrooms and lounges, charging bars, etc.

Jim Romeo (www.JimRomeo.net) writes about business and technology topics.

STAFFING Q&A

http://www.JimRomeo.net

https://www.mynefcu.org/


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BY NICK BROWN

Becoming a Great Sales Coach

IN-BRANCH PRODUCT SALES

W ho is the best coach you have ever

had? For me, it was Hal, my little league soccer coach. He taught me how to play the game and how to

love it. But more importantly, Hal built my confidence and helped me realize my fullest potential as a little league soccer player.

Great coaches are amazing influences in our lives; which is why you were likely able to think of

someone quickly. They teach and inspire. They help

us to achieve what we believe is unachievable. Behind

every great sports athlete there is a great coach. Unless

of course, you are LeBron James. The same applies

to every credit union sales rep. For sales to thrive at

your credit union and on your credit union teams, there

must be competent sales leadership and consistent

sales coaching.

So how do you become a successful sales coach?

Here are 4 areas you can improve.

#1 Sales Coaches Must Have ExperienceA 2016 article published by ABCNews.com titled,

“Ranking all 129 college (football) coaches… as

players”, illustrates that every Division 1 head football

coach played the game at least at high school level. All

but 7 played at the college level. The same holds true

for professional sports such as Major League Baseball,

the NBA and the NHL. This is not just a coincidence and it isn’t unique to just the sports world. head football coach played the game at least at high school level. All

but 7 played at the college level. The same holds true

for professional sports such as Major League Baseball,

the NBA and the NHL. This is not just a coincidence and it isn’t unique to just the sports world.

Many of the best coaches, those who help others to

achieve exceptional success in any given area, were at

one-time players in their respective industry or craft. In

order to be a successful coach, you must have a passion

for what you are coaching. You must have a foundation

to build upon, and you must be able to relate to those

you are coaching.

To develop into a successful coach, you need to

walk the walk and talk the talk. You must understand

how to sell and have success doing it. If you find yourself in a leadership role over a sales team but have

limited sales experience, one of the first things you need is sales experience. But don’t worry, you do not have to become an elite salesperson.

The article points out that of the one hundred and

twenty nine D1 Head Football Coaches, less than ten percent played at the professional level. The message

here is that a coach doesn’t need to have been an elite contributor to become a great coach. But elite coaches

were once players.


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#2 Sales Coaches Must Make TimeCoaching is not only an investment of experience in

others, but an investment of time. I often hear sales

leaders tell me that they simply don’t have time to sit with their teams and provide coaching on a consistent

basis. However, when we sit down and look at where their time is being invested, we often find a number of time consuming tasks which can be eliminated or

delegated.

As a leader of a sales team, a top priority,

perhaps the top, is to coach and develop staff. With

this perspective, it is easy to see that allowing your

schedule to be dictated by the next fire that needs to be put out, or solving other people problems, or a full

email box is simply not effective. As a leader you can

start making time by resisting the urge to respond to

the lower priority tasks which always seem to make the

loudest noise.

Next, as a manager and leader you should not be an

iatrical part of the day to day operations of your team.

When you are fulfilling operational activities such as monitoring phone calls, balancing the value and ATM,

making schedules, and so forth, you are consuming

time which should be spent coaching. Additionally,

you are depriving your team the opportunity to take on

responsibilities and develop into leaders themselves.

To make more time for coaching your team, assess

your day to day functions and delegate as much as

possible.

Ideally, a sales leader will make time every day

for coaching. This would look like official coaching sessions such as one-on-ones, shadow coaching,

and follow-up meetings. In addition, it’s important for leaders to take time to prepare for coaching and

training opportunities. Because coaching is a top

priority for sales leaders, enough time should be made

to effectively lead the team.

#3 Sales Coaches Must ListenImagine a coach who never shows up for games. She

justifies this by saying she can simply look at the stats and the final score of the game and know exactly where the team needs improvement. If this situation truly

existed, how effective do you think her coaching will

be? How will her coaching be received by the team? It’s hard to even imagine someone coaching a sports team like this, yet it happens all the time on sales teams.

For many sales leaders the preferred method of

coaching is performance based. This means the coach

will look at their team’s numbers, including the sales in process, and then discuss what needs to be done to

correct those numbers. While performance metrics are

effective for holding salespeople accountable and to

get a high-level view, they do not tell the whole story.

The majority of sales coaching should be development

based. This kind of coaching can only be done after

observing employees’ sales conversations with members. Listening is also key. Great sales coaches

will follow-up to review what they have observed with

their team. Rather than jumping in to correct and teach,


14


they will ask questions to learn what the salesperson

was thinking and feeling during the member interaction.

After having observed their employee apply what

they have learned in real interactions with members,

and having asked questions to learn more, the coach is

prepared to begin offering guidance.

#4 Sales Coaches Must Be TrainersLikely, when thinking about an amazing coach in your

life, you thought of someone who empowered you to

become better than you thought was possible. Coaches

lift us up and see in us that we don’t see in ourselves. In my credit union career, I had two different sales

experiences. My first experience was as a branch employee. I started as a part time teller. I worked at a

busy branch. The two most important directives were to

move members through the line and be sure to balance

at the end of the day. You can probably guess where

my managers invested the bulk of their coaching time.

Don’t get me wrong, accuracy and speed are important. However, in a short period time I had mastered both, yet there never seemed to be time for sales coaching.

My second experience happened 3 years later in the

credit union’s newly formed outbound call center. I applied for the position and came to the interview with

a great attitude and optimism that I could become a

great salesman. The hiring managers must have seen

something promising in me that lead them to believe

I would be great because they hired me on the spot.

I remember walking out of the interview wondering

what I had just done.

From day one my manager took responsibility for

my development. He taught me the basics of selling and gave me the information I needed so I wouldn’t crash and burn on my first call. Then he handed me the phone and told me to make my very first sales call ever. To say the least, I was a bundle of nervous energy. I

remember he looked at me and said “Nick, I believe

in you. You are going to do just fine.” I made the call and I made the sale.

With continued coaching from my manager, I learned

to overcome objections, sell a wide range of products

and services, and even recapture mortgages, of which

I was quite leery. Within a few months I was a top

producing agent amongst others who had much more

experience than I. This happened because I was

trained, not just on operation, not just on processes and

regulations, but continually on sales.

Hal probably doesn’t understand how much of an impact he made in my life. His coaching and belief in me, the time he spent with our team at practice and

games, and his interest as me as an individual inspired

me to be a better soccer player. One day after practice,

I remember Hal talking with my Mom about tryouts for a competition league. I asked, “What is competition

league?”. I don’t remember his exact words, but he turned to me and said something like this, “It’s the next level, and it’s time”. As a sales leader you have the opportunity to coach

your team up to that next level, whatever it may be.

Just don’t be upset when the time comes for them to move up.

http://abcnews.go.com/Sports/ranking-129-college-coaches-players/story?id=37518988





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Nick Brown Consulting, established and founded by Nick Brown in 2015, is a credit union–specific sales training group dedicated to bringing a proactive sales approach to every credit union. Nick Brown Consulting accomplishes this aim by providing sales consulting and training to enhance branch sales, outbound sales and lending center sales. With an emphasis on lending and cross-sales, Nick’s goal is empowering credit unions to add value in the life of every member in every interaction. Engage Nick Brown directly at 801-860-5807 or [email protected]. Ask about his credit union–specific workshops and online sales training, featured at www.nickbrownconsulting.com.

http://www.nickbrownconsulting.com

http://salescu.com/


16

BY CHAD DAVIS

Branch Robots and the Hype ofTomorrow Can Hold You Back! The raised concerns over a possible downturn in jobs, caused by robots taking jobs in the branch, has thus far proven to be more hype than reality. Empty clickbait headlines are the only thing real about tellers being replaced by robots anytime soon. Instead, people—not machines—dominate frontline and back-office functions of credit unions.

BRANCH STRATEGIES

M any great advancements, available

today, serve not as a replacement

for the human component, but as an

enhancement. These innovations are

highlighted in a new white paper

from Kronos, titled, Robots vs. Reality: Innovative

Technology for Today, Not Tomorrow.

Combining people and technologyIt’s true that robotic and intelligent process automation (IPA) is a rapidly advancing field, but relatively few financial institutions have ventured into this form of technology thus far. According to a recent PwC

Financial Services IPA survey, only 9 percent of

respondents reported having IPA bots in production.

Some firms encountered unexpected risk and control issues that have tempered adoption of this technology.

Quelling concerns about industry job loss is the growing realization that financial institutions need not choose between embracing technology and supporting

their workforce. As the white paper points out, the

organizations that are likely to do best in the financial services industry are those that successfully combine

people and technology. The competitive advantage

goes to those companies that use their technological

strengths to empower their people by leveraging

technology to optimize their workforce, improve the

customer experience, and ultimately boost their bottom

line.

Committing to breakthrough advancementsMaking the financial commitment for breakthrough technologies can be difficult, given how rapidly the tech world advances. It’s like trying to jump on a fast-moving train. Some financial institutions may be tempted to wait for “the next big thing,” but that

hesitation imposes an inherent risk in falling behind

competitors that have caught the train and are

integrating advanced solutions into their organizations



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BRANCH STRATEGIES

today. Forward-thinking companies figure out how to integrate digital innovations into their physical

channels as a way to enhance the customer experience,

deploying cutting-edge technologies that allow them to

gain competitive advantage in their markets.

Financial institutions looking to upgrade their

technology should begin by creating a flexible information technology platform. This will help

them shrink development and integration cycles

when implementing new applications or onboarding

third-party services. A flexible platform enhances the ability to integrate core business systems with an

ever-expanding digital ecosystem using a convenient

software-as-a-service (SaaS) model.

Using open application programming interfaces

(APIs) allows credit unions to keep pace with the

latest innovations in their quest to create new revenue

streams and take on the role of disruptor. A robust

API and integration platform offers virtually unlimited

extensibility while also simplifying integration.

Growing capabilitiesOther up-and-coming technologies hold the promise

to enhance efficiencies and customer service. Artificial intelligence (AI), coupled with machine learning,

will likely become more important in relatively short

order. More than half of those responding to PwC’s 2017 Digital IQ Survey report that they are making substantial investments in AI, and nearly two-thirds

said they will be doing so in the next three years.

AI includes such capabilities as advanced

forecasting, proactive labor compliance solutions,

and personal digital consultants to help frontline

managers work smarter and more efficiently. One bit of good news about AI, in comparison to robotics, is

that financial service employees don’t feel particularly threatened by it. According to a 2018 Coleman Parkes

Research, Automation and New Technology Study

conducted on behalf of Kronos, about two-thirds of

respondents view AI as a means to simplify processes

and ease their workload.

Any discussion of leading-edge technologies must

encompass the continuing need for state-of-the-art

mobile solutions, which are a big factor for today’s on-the-go workforce. Younger workers are especially

likely to choose their employers based on the quality

and quantity of the mobile tools they offer.

Consumers are likewise on the go, so financial institutions need to deliver personalized services

promptly and efficiently. For example, next-generation appointment-setting solutions enable customers to

book appointments in a matter of seconds, using

geolocation technology right from their smartphones,

tablets, or computers.

Another major technological innovation is the

use of advanced analytics to guide strategic decisions.

Implementing an advanced analytics strategy involves

collecting and crunching data and using the resulting

insights to build business processes that allow

organizations to improve their operations, enhance

productivity, accelerate growth, and improve risk

control.


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BRANCH STRATEGIES

Getting beyond the hypeAdvanced technologies in the financial services sector are making a difference today, even as the hype swirls

about robots, quantum hardware, and the Internet of

Things. These concepts have yet to hit the mainstream,

and it could be years before they reach their full

potential. In the meantime, savvy credit unions would

do well to focus their technology dollars on solutions

that are already delivering results. Empowering

managers and employees with flexibility, convenience, and guided decision making, these commercially

available solutions can help businesses stay ahead of

the competition.

Chad Davis is senior industry marketing manager, Financial Services Practice Group, Kronos, which is a leading provider

of workforce management and human capital management cloud solutions. Kronos’s industry-centric workforce applications are purpose-built for financial institutions of all sizes. Chad can be reached at [email protected].


https://www.kronos.com/resources?industry=banking


BY KAITLIN MORRISON

Indirect Auto Lending Best Practices One credit union has found prosperity in auto lending by keeping its members informed and engaged. Discover what this CU’s Top 3 best practices are and how to apply these secrets to success to your indirect lending program at both the corporate and branch level.

BRANCHBUSINESS

19

At the start of 2017, we talked about

automotive lending and shared some ideas

for creating an effective indirect lending

program.

For this issue, we spoke with two

leaders at Greater Nevada Credit Union about their

auto loan program and how they serve their members

by helping them get the financing they need. This credit union emphasizes financial education right at the start and keeps members informed and

engaged so they do not feel lost during the process.

Greater Nevada shared their best practices with

us and we have three great takeaways from our

conversation. From there, we will talk more about

branch best practices, including compliance and

training issues at the branch.

Best Practice #1: Reassure your members and avoid

making assumptions. The start of every lending

conversation is your opportunity to encourage your

members, begin arming them with knowledge and help

them feel confident. Your members should “not be frightened of the process. Ask for clarification on anything that you don’t fully understand – there are no dumb questions!” says Tom Wambaugh, VP of Member Services at Greater Nevada Credit Union.

If your member needs a little reassurance, that is

okay. Remember, not everyone has the same level of

experience with auto buying. A big part of the loan

consultant’s job starts with finding out where the buyeris in terms of his or her loan and financial knowledge.

Not everyone needs a detailed play-by-play of the

lending process, but some of your members are also

beginning with very little or no loan know-how at all.

This is the moment for your consultant to triage the

member’s experience and research level. Wambaugh suggests that loan consultants

prep for every new loan conversation by avoiding

assumptions about the buyer. Each member is bringing

a different level of experience, confidence and financial preparedness.

Tom Wambaugh, VPof Member Services atGreater Nevada CreditUnion

4 BRANCHBUSINESS

TURN ON YOUR BRANCH SUPERVISORS & MANAGERSwithTEAMBUILDER.

www.cubusiness.com/teambuilder/buy



20

Best Practice #2: Bring the right education to every

loan conversation. After pre-approval, your member’s financial picture will guide the way through the education, budgeting and shopping steps.

“Having your financing in order prior to shopping for your next vehicle eliminates some anxiety and lets

you focus on making sure you make a great vehicle

choice,” Wambaugh adds.

By having every member get pre-approval at the

start, Greater Nevada is able to identify members who

may want or need additional help before they make

the purchase. The credit union’s member consultants know which financial education programs to suggest and how to help applicants who do not feel ready for a

loan right now. From there, members can get a personal

plan to shape up their finances for a loan or to prep for better loan options in the future if they are looking

for lower rates than what they currently qualify for.

Maybe a loan is not right for the moment, but that does

not necessarily mean applicants are far away from the

right car.

Best Practice #3: You don’t have to choose between member service and following metrics. Your success

requires that members get the service they need and

that your lending program remains viable. Embrace the

challenge and hold these two benchmarks in tension.

If your program is working, your members will

get the services they need and buy the cars they are

looking for. Along the way, your credit union also

needs to promote the long-term viability of your auto

lending program.

“Auto lending success can be defined by market share, portfolio performance and member-to-loan

ratios. Ultimately, a successful program should

provide our members with flexible loan options that are priced competitively,” says Marcus Wertz, VP of consumer lending at Greater Nevada Credit Union.

Using performance benchmarks is not inconsistent with

member service. Your members need a competitive

program that will be around whenever they need a

loan. Keeping the program strong requires solid, stable

planning along the way.

Applying Best Practices to Your Indirect LendingProgram – at the BranchConsumers are increasingly turning to credit unions for

financing. According to the Federal Reserve’s March 2017 report on consumer credit, credit unions have

seen several years of fairly consistent consumer credit

growth.¹ How your credit union manages and guides this growth is important. Effective staff training, strong

relationships with dealers and effective benchmarks to

help you navigate market changes are particularly key.

Working closely with the dealerships, develop contracts

that protect your organization and your members.

Know how to grow these dealer partnerships over time

and protect your lending program by managing risk

and compliance issues.

At the branch level, there are specific steps you can take to advance these goals. In addition to Greater

Nevada’s insights on auto lending, consider how yourbranch is doing in each of these areas:

Preventing Fraud – At the branch level, all staff should

know your credit union’s policies and consistently apply them. Data should be secured appropriately and

access to information should be restricted. This is a vital

part of your organization’s due diligence in protecting your lending program. Any potential source of fraud

should be watched carefully and your organization

should take steps to safeguard itself.

Staffing Levels – Your program needs enough staff

to reasonably divide the loan responsibilities if your

lending is done in-house. No one person should be

responsible for every aspect of the program. This

division of duties may help reduce your liability and

ensure that your policies are appropriately applied.

Fair Lending – Even if your credit union applies fair

lending policies very carefully as a whole, every person

at every branch should know where your organization

stands on these issues. This is a very important area

for lending. Discrimination against borrowers for

protected characteristics is inappropriate and may

jeopardize your entire loan program.

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BRANCH BUSINESS

Branch-level associates are a strong asset to auto

lending, so make sure they regularly review your

policies and understand their roles. Compliance issues

may occur at any point in the lending process without

appropriate policies, guidance and planning. Your

branch may need a self-audit to identify weak areas

and to look for ways to improve.

Prepare for Responsible GrowthAs you train employees, build your auto lending

program and educate your members, be prepared

to manage this next phase of growth carefully. Best

practices may help as you carefully plan how your

branches will help you serve your members better.

Balancing the right metrics, watching compliance

issues and conducting audits of your lending programs

may help you keep these loans available without

sacrificing competitive rates. However you manage your lending, strong communication with branch employees and thorough

training will help them provide members with the right

information and options. Loan consultants, whether

or not they are at the local branch, must know what

resources to offer members and how to provide the right

financial education. Branch managers have a significant role to play in this process and can demonstrate best

practices to their teams. If a particular practice is a

struggle for their branch, they can also reach out to

upper management for guidance and suggestions.

Your organization and your members rely on every

aspect of your lending program. Consistency and care

will help your leaders and team members find their next goals and appropriately follow them. At every

stage of the process, your willingness to reconsider

your choices and watch your environment will helpyou

stay prepared for new opportunities.

In addition to covering Branch BUSINESS for CU Business, Kaitlin is a freelance business writer based in Central Washington State. She is passionate about educating her readers and is a proud credit union member and supporter of credit unions. You can read more of her writing at www.kaitlinmorrison.com

Sources:1. https://www.federalreserve.gov/releases/g19/current/2. https://www.ncua.gov/Resources/Documents/LCU2010-15.pdf3. https://www.cues.org/article/view/id/Loan-zone-indirect%E2%80%93lending

http://www.kaitlinmorrison.com

https://www.federalreserve.gov/releases/g19/current/

https://www.ncua.gov/Resources/Documents/LCU2010-15.pdf

https://www.cues.org/article/view/id/Loan-zone-indirect%E2%80%93lending




OPINION

22

BY GABE KRAJICEK

Why Bank of America’s Fee Hike is Bad for Communities, Consumers and the Economy

B ank of America’s recent decision to slap a $12 monthly fee on all accounts with

less than a $1,500 balance is an insult to

consumers across the nation. The charge

applies to customers with an “eBanking”

account, which up until recently, was free for anyone

who didn’t receive paper statements or use bank tellers. Bank of America has now phased out eBanking

and transferred all its customers to “core checking

accounts” that require them to contribute a direct

deposit of at least $250 a month ($3,000 a year) or keep

a minimum daily balance of at least $1,500 to avoid the

$12 fee.

This greed-driven tactic attacks some of the hardest

working and most vulnerable people in the country.

In fact, a new survey suggests that nearly 70 percent

of Americans maintain an average checking balance

of less than $1,000. Making this decision even more

insulting is the fact that Bank of America is upping

fees after having recorded a record-high profit of $5.6 billion last year.

But it’s not just Bank of America. Over the past seven years, we have seen megabanks make

irresponsible lending decisions, get bailed out by

the government, and then turn around and charge

consumers more for services and products. As her

last parting shot, Janet Yellen, the exiting chair of the

Federal Reserve board of governors, basically said that

the actions being witnessed at Wells Fargo indicate

that there is such top-down lack of management

oversight that in order to protect consumers, the Fed

needed to force Wells Fargo to restructure its top-level

leadership. But interestingly, the megabanks are so

strong that even the Fed Chair didn’t challenge them while still a sitting member of the committee.

So it’s not just BofA; it’s not just Wells Fargo. Megabanks do not put consumers first. They are not committed to the communities they serve. They are not

committed to the customers that bank with them. They

are only committed to the stock price and the profit needed to drive it higher. Now I’m not saying that profit is bad, but banking is a trust-based business first. There has to be a balance between profit and good ethics…especially since the five biggest financial institutions currently hold 44% of all the industry assets in the

United States according to recent data.

There is a dire need to put a stop to the bad behavior

of megabanks now, as it severely impacts consumers

and the communities they live in. Unlike megabanks,


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OPINION

community banks and credit unions are committed

to their communities, and Bank of America’s blatant disregard for consumer well-being has made this the

perfect time to highlight the stark contrast between

the consumer-friendly policies of credit unions and

community banks compared to the predatory practices

of the big banks.

Here are just a handful of advantages:First, community banking is an investment in that

community. Studies show that small banks actually

make up 54 percent of small business lending. And as

we all know, small businesses are critical to driving

innovation, creating thriving local economies and

significantly reducing wealth inequality. Second, consumers get better service, plain and

simple. Sixty-four percent of people surveyed in the

Consumer Banking Insights Study believe community

banks and credit unions provide better personal service

in any kind of interaction — be it face-to-face, over the

phone, or online — than big national banks.

Last, consumers are more likely to get rewarded for

their business rather than penalized, as in the case

with Bank of America or any other megabank. Let’s face it, this concept is just too consumer-friendly for

megabanks’ taste. In general, community banks offer lower fees than big banks, with 63 percent offering

free checking. They also have lower overdraft fees,

and some community banks are even reimbursing

several, if not all, surcharges at out-of-network ATMs.

Additionally, studies show that community financial institutions also offer, on average, better interest rates

on savings and better terms on credit cards and other

loans.

In contrast, the kind of behavior we’ve seen from megabanks time and time again is unacceptable,

and we – as a collective industry – need to send a message that the blatant abuse of power just won’t be tolerated. These banks have a long-standing history of

consistently acting in their own self-interest regardless

of the impact on account holders or the economy at

large. If you are an investor, they are in your corner. If

https://kasasa.com/


24

OPINION

not, then they really seem to care less about your well-

being.

There is a petition in response to BofA’s fee hike, and it is getting some traction. But it won’t work, as we’ve seen from the past, because BofA will ignore it long enough to outlast the consumer distaste for their

actions. You can see the petition for yourself at www.

change.org. It’s time to send a real message. We must hold our financial partners to a higher standard – and that standard has to indicate that consumers have the

right to expect a fair exchange. When a consumer trusts

a financial institution with their income and savings, that institution should honor them by respecting how

hard it is to earn every nickel that goes into the account.

It is time to take back banking.

Gabe Krajicek is Chief Executive Officer of Kasasa, an award-winning financial technology and marketing technology provider. For more information on Kasasa, visit www.kasasa.com, or visit them on Twitter @Kasasa, @KasasaNews, Facebook, or LinkedIn.

http://www.change.org

http://www.change.org

http://www.kasasa.com



BY JIM ROMEO

Network VisibilityA conversation with Jay Botelho of Savvius Jay Botelho is the Head of Products at Savvius Inc. based in Walnut Creek, CA. Savvius is a technology company that provides network visibility to monitor performance of crucial networks and insure their reliability to support the business operations they serve.

BRANCHTECHNOLOGY

26

S avvius’ products are used by bank and credit union branches. We spoke to Jay

Bothelo to gain insight into this topic of

network visibility and what it means for

the branch of today and tomorrow. Here’s how our conversation went.

Branch Business: What is network visibility and how

can it be used at the branch level?

Jay Botelho: Because of the size and number of bank

and credit union branches, network visibility is often

limited, or non-existent until an actual problem presents

itself. Then, and only then, does a network engineer or

IT organization set up, on a temporary basis, the tools

needed to troubleshoot the situation. The real solution

is to have a 24x7 network visibility solution in place.

Such a solution provides a headquarters-based IT

organization or network engineer(s) visibility into all

network traffic at the bank, whether or not that traffic is routed back through a centralized data center. A well-

designed solution provides both overall monitoring

dashboards for long-term trending and reporting, and

detailed information, like the network traffic itself, for immediate root-cause analysis of problems. And

all of this can be done immediately, and remotely,

eliminating costly travel to branch offices and enabling problems to be solved quickly. Small-footprint, low-

cost hardware solutions now exist that makes network

visibility feasible even for banks with thousands of

branch offices.

Branch Business: For a branch manager, will it make

their life easier?

Jay Botelho: Network visibility is not something

your typical bank branch manager thinks about on

a daily basis, but when network issues interrupt

branch services, it becomes top of mind. If the branch

manager can have a network expert immediately

access the network traffic and begin troubleshooting the instant a problem presents itself, or better yet, if

a remote network engineer can see problems brewing

with network visibility and address them before they

Jay Botelho, Savvias, Inc.

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BRANCH TECHNOLOGY

present themselves to tellers and customers, the branch

manager’s life will indeed be easier.

Branch Business: How about for customers within the branch, will network visibility dashboards be able

to benefit them? Perhaps indirectly?

Jay Botelho: All a customer in a bank branch wants

to do is get in and get out, finishing their transaction as quickly as possible. Although the customer has little

concern for how the branch’s network is configured or monitored, they never want to be inconvenienced

by a slow, or unresponsive, network. So, although a

customer may never see the benefits, they’ll also never suffer the consequences of poor network performance

if proper network visibility is in place.

Branch Business: For branch managers, what advice

would you give them with regard to the security of

applications in the cloud? There’s a high degree of concern that data could be compromised, yet many

believe that the cloud is actually much more secure

than an on-premise software installation? Would you

agree and what can you tell us about this from the bank

and credit union branch perspective?

Jay Botelho: The “cloud” is a very broad term.

Breaking it down a bit should help provide at least some

assurances. There are three broad categories to consider

– private cloud, public cloud, and SaaS applications. In private cloud, the bank utilizes virtualization

technology for its servers and applications but remains

in control of these assets. Key applications are run in

this private cloud versus on premises at the branch. In

many ways this is similar to the centralized data center

model many financial institutions have followed for decades. The risk is very low, but it’s still “cloud.” In public cloud the bank makes a decision to leverage the

hardware assets of a third-party provider, like Amazon,

while still running their own applications. There can

be (but not always is) a financial benefit in making this transition, but significant trust must be placed in the third party. It is assumed the public cloud provider

implements security at least as well as the customer

since they can afford to hire the best team possible and

amortize it over many, many customers, but security is

always a risk. When it comes to Software-as-a-Service

(SaaS), the bank is putting substantial faith in the SaaS

provider, since the third-party controls everything

about the application – hardware, software, data, security, etc. It is at this point that extreme caution

should be employed. Non-critical applications may be

candidates for SaaS, but it’s unlikely banks are ready to let their core banking applications be managed by

third parties.

Branch Business: Any useful lessons learned about

network visibility and activity within branch operations

- or advice that may be useful to a branch manager?

Jay Botelho: The takeaway for branch managers is to

make sure they’re informed about and involved in the deployment of proper network visibility within their

branch(es), visibility that provides skilled network

engineers remote access to the branch 24 hours a day. If

told that visibility at each branch is too expensive, they

need to be educated and confident enough to challenge the IT organization to find an appropriate solution, because cost-effective solutions, both hardware and

software, do exist that will help to eliminate just about

any network issue a branch can face.




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BY RANDI MARMER

“Member Banking is Better Banking®” Captures the Theme of Brand Initiative

I n a highly competitive and saturated market,

financial institutions often look for ways to distinguish themselves from the competition.

When TruMark Financial® Credit Union, one of

the strongest, most progressive credit unions in

Southeastern Pennsylvania set out to create a branding

initiative, its mission was to do just that --- distinguish

itself from the competition.

Founded in 1939, TruMark Financial is

headquartered in Fort Washington, Pa., and has

approximately $2 billion in assets through its 22

branches, Member Service Center, and a suite of

innovative online and mobile banking services.

Offering a full range of banking, investing, and

insurance services to more than 115,000 members in

Southeastern Pennsylvania the credit union receives

high praise from its members on member surveys.

TruMark Financial was performing well, member

satisfaction was high, and the business was growing.

Despite that, management realized there were so many

people living within the credit union’s footprint that were unaware of the financial services and benefits it offered. The branding initiated presented an opportunity

to heighten awareness.

TruMark Financial hired branding experts, Van Deusen & Levitt Associates (VDLA), to conduct employee interviews, member focus groups, and an

Emotional Brand Analysis® (EBA) – a proprietary quantitative research technique that uncovers emotional

and rational factors that drive member behavior.

Thirty-two distinct brand attributes were identified and then measured against actual marketplace performance

to quantify how each attribute could impact members

and the organization.

EBA® Analysis revealed TruMark Financial

already had a very specific emotional brand advantage over competitors that could be used to effectively attract

new members. Using this insight, the credit union

marketing team worked with VDLA and developed a new brand positioning, target audience profile, and a simple yet powerful brand promise: “Member banking

is better banking®.” The advantage the credit union

had was it already possessed the emotional brand

among its members. The components were already in

place. The next step was to design a strategic plan to

communicate the message through the media and other

delivery channels.

The new branding initiative aligns with the credit

union’s member-focused philosophy and aims to strengthen the credit union’s visibility in Southeastern Pennsylvania. Everyone knows membership has its

privileges and “Member banking is better banking®”

captures the theme of the initiative, said Elizabeth

Kaspern, TruMark Financial’s senior vice-president, chief retail services officer.

BRANDINGINITIATIVES

pscu.com

844.367.7728

Member Insight: Advanced Analytics Reporting Tools

Uncover a wealth of knowledge in your data with easy,

point-and-click, ad-hoc reporting. Member Insight solutions

empower credit unions with actionable intelligence that

drives cardholder engagement, satisfaction, and retention.

Understand Your Market Our Venture. Your Gain.


pscu.com

844.367.7728

Member Insight: Advanced Analytics Reporting Tools

Uncover a wealth of knowledge in your data with easy,

point-and-click, ad-hoc reporting. Member Insight solutions

empower credit unions with actionable intelligence that

drives cardholder engagement, satisfaction, and retention.

Understand Your Market Our Venture. Your Gain.

http://www.pscu.com/


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“Consumers that bank with TruMark Financial are

more than customers, they are members,” said Kaspern.

The frontline staff addresses members by name;

they are not just an account number. The branding

initiative communicates what it means to belong to

a credit union and the benefits that come along with membership. Delivery channels to heighten awareness

include television and radio commercials, billboards,

and an updated easy-to-navigate website. The branding

initiative reaffirms the credit union’s commitment to its members. Humor and a catchy tune set the commercials apart from the usual financial institutions’ messages and boast TruMark Financial not only likes

a little competition but offers better products than its

competitors.

The credit union’s senior management team views the branding effort as a way to stand apart from the

competition and better reflect the value the credit union provides to its members. “It’s an opportunity to educate consumers about the credit union, its purpose, its

visionary goals, and the benefits of membership,” said Richard F. Stipa, TruMark Financial’s chief executive officer. Working with supervisors and team leaders

at TruMark Financial, VDLA also created a comprehensive brand training curriculum to ensure

that all employees could easily and consistently live

the new brand promise every day, with every member.

At every member touch point, TruMark Financial uses

its emotional brand advantage to attract new members,

deepen existing relationships, and inspire employees

to outperform.

The management team realized the employees

had to be engaged before rolling out the brand to the

public. To create excitement and increase engagement

among employees, the marketing team created posters

that were displayed on easels on each floor at its headquarters as well as in the branch work rooms. One

message said, “Watch for the commercials on April 2.”

Another said “Member banking is better banking®.”

Before long employees found themselves walking

around saying “Member banking is better banking®,”

embracing the branding initiative.

On April 2, the brand initiative was officially introduced. At 6:30 a.m. bright-eyed and full of

enthusiasm, the senior management team greeted the

first employee as she entered the building and offered her a sweet treat. Each employee was personally greeted

and the stage was set for the rest of the day. “Member

banking is better banking” resonated throughout the

building as employees donned their new TruMark

Financial polo shirts with “Member banking is better

banking®” embroidered on the sleeve.

When employees turned on their computers, the

portal page displayed a graphic with the message, “Our

enduring idea: Member banking.” There was a wave of

Mom spot Dad spot

BRANDING INITIATIVES


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BRANDING INITIATIVES

excitement in the air throughout the day as employees

talked about the radio and the television commercials

they heard and saw as they got ready for work that

morning.

To keep the momentum and enthusiasm going,

front-line employees in TruMark Financial’s 22 branches distributed slices of cake decorated with

the message “Member banking is better banking®.”

Members happily shared in the celebration and

expressed their appreciation for the credit union’s continued commitment.

In conjunction with the branding initiative to

increase visibility, the credit union continues to

support its community partners and consumers in

Southeastern Pennsylvania, demonstrating the credit

union philosophy, “People Helping People.” Some of the community outreach projects the credit union has

End title Please note: Click here to view the television

commercials: www.trumark.com/better

sponsored include a clothing drive for women returning

to the workplace, a book collection for school-aged

students, and a food drive for local pantries.

As the credit union continues to thrive, it’s important its members realize “Member banking is

better banking®” because the member belongs to a

financial not-for-profit cooperative. TruMark Financial continues to grow and has become one of the most

progressive credit unions in the country where its

employees live the brand and “Member banking is

better banking® “resonates.

Randi Marmer is the Assistant Vice President of Public Relations at TruMark Financial® Credit Union in fort Washington, Pa. A seasoned communications and marketing professional, she has more than 25 years of experience in the credit union industry.

http://www.trumark.com/better

Virtual TellersTwo Managers Tell Us How They Keep Branches Personal Virtual teller platforms may offer opportunities for credit unions to extend their reach but they also pose the risk of impersonality. How can you take advantage of all this technology has to offer without alienating your members? Listen is as two CU branch managers share their top three secrets to success.


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BY KAITLIN MORRISON

4 BRANCHBUSINESS



V irtual teller technology is reshaping many

credit union branches across the country

and the world. A virtual teller platform

allows members to interact with a remote,

live person to conduct their banking

transactions. This capability allows tellers to be offsite,

in a centralized location for multiple branches or

elsewhere. For branch managers, it represents another

tool to connect with members and improve their

experiences at their credit unions.

Rather than alienating your members with such

technology, you can implement it in the right way

and actually enhance the experience at your branch.

Your branch staff and other support staff are already

the backbone of your credit union. When you add new

technology, giving them the starring role will help

make the transition successful for everyone.

For this month’s column, we asked two credit unions to share with us how they successfully use this

technology and still maintain the quality, personal

connection members crave when they visit physical

branches. Their answers show how your branch can

add a personal touch and still extend your reach through

the power of virtual tellers.

Learn from their tech tips and help your members

have a top-notch experience with technology at your

branch.

Tech Tip #1: Plan for the learning curve by engaging

your staff and your members. Choose to deliberately

make the technology more human and personal.

While these systems do use technology, the

transactions are still fundamentally driven by human

beings on both sides of the machine. This may seem

very straightforward, but branches ignore this tip at

their own peril. Your members will likely need plenty

of time and help adjusting to your new system. Your

employees will, too.

At the Bay Shore Branch of New England Federal

Credit Union (NEFCU) in Long Island, NY, branch

manager Amy Williams-Carmella suggests accounting

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BRANCH BUSINESS

for plenty of time to assist members and help them feel

comfortable. This is also an opportunity for both your

in-branch and remote staff to shine.

“The two teams work cohesively as our member

service representatives spend a significant amount

of time at the ITMs (Interactive Teller Machines)

demonstrating and introducing members to the new

technology to ensure a positive member experience,”

Williams-Carmella says.

She also suggests testing how members use and

interact with your technology. Everything from camera

angles to lighting to how keyboards are positioned and

how responsive the touchscreens are all factor in to how

users interact with the technology. Technology that is

perceived as difficult, unfamiliar, strange or somehow

wrong can be off-putting or uncomfortable to some

members. User experience of technology should be an

important factor in how and what your branch presents

to the membership.

David Perry, vice president of branch operations at

Mid-Hudson Valley Federal Credit Union (MHVFCU), recommends preparing staff members for the time and

effort necessary to assist members during the transition

to virtual teller technology. This is also the right time

to employ creative strategies to make your members

more comfortable trying the new technology, he says.

“During our initial roll-out, we stationed staff on the

floor with dollar bills. We offered each member the

opportunity to deposit a dollar into their account as a

means of demonstrating the technology,” Perry said.

With a bit of planning and learning, you can even

build these new technologies into your branch team’s strategy. Be sure to include your offsite, virtual staff,

who are a valuable part of the success of your branch.

Tech Tip #2: Regard your offsite staff as essential

members of your branch team.

Whenever possible, try to include your branch’s offsite staff in team meetings or find other ways to keep

them informed and involved in the life of the branch. A

cohesive credit union team will help you provide better

member service. Your tellers understand your members

and are close to the needs of your membership, even if

they are remote, Williams-Cardella points out.

“I make sure to personally include our remote

tellers on anything affecting or related to the branch,”

she says.

Because remote tellers help members with their

financial transactions, they also have opportunities to

upsell and cross-sell.

“Our ITM tellers are a rich source of cross-sell and

sales referrals as they are the first line of communication

with our members,” she says. “The tellers act as an

extension of the branch and we consider them an

integral part of the branch team.”

Williams-Cardella’s branch has no onsite tellers. She claims this model is more efficient and allows tellers to

quickly help members with fewer errors and a greater

level of member engagement during transactions.

NEFCU’s headquarters in Westbury, NY has onsite staff and branch management to help members use the

machines and ensure that operations run smoothly.

“Our staff is excited about the new technology as it

represents the future of banking.” Both teams really do

work as one when they are serving members, she says.

At MHVFCU, Perry says the virtual tellers (whom the credit union refers to as “personal tellers”) are basically

their own branch and are valued for what they do for

the entire credit union. The personal tellers work at a

centralized location and function together as a single

team.

4 CFOCURRENCY

TURN ON YOUR CFO and CEO withTEAMBUILDER.




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“We consider them their own branch, a branch which

supports the entire physical branch network,” he says.

“The retail branch management team members consider

and refer to the personal tellers as ‘their’ tellers.”

Tech Tip #3: Boost your branch by taking advantage

of the best technology has to offer.

As Perry claims, technology offers some significant

advantages for your members that make the transition

to virtual teller systems worthwhile for many credit

unions. These systems allow your branches to scale

staffing levels to meet demand and to provide better

service during peak hours. Branches that see variable

traffic throughout the day can benefit from this boon.

You can seasonally adjust your staffing based on past

transaction data and expected future traffic, allowing

for flexible scheduling across multiple branches.

Even with these advantages for the credit union,

members also stand to benefit from improved service

during peak hours.

“The personal teller channel allows for the delivery

of personalized member contact over a broad network

during extended service hours,” Perry notes. “In these

days of commuting, working multiple jobs and such,

many members simply cannot make it in to the branch

during traditional business hours. The availability of

the extended service house the personal tellers offer is

a convenience many members need and desire.”

Williams-Carmella agrees. “It also eliminates a

lot of common errors as members are engaged and

can see on screen everything the teller is processing.

It improves the member interaction, which leads to

[fewer] transactional discrepancies. It’s a win-win situation for the credit union and our members.”

Making Technology Personal In Branch BUSINESS, we frequently talk about the

role of member experience in the life of your branch. If

you do choose to embrace remote teller technologies,

use them to enhance the personality of your branch and

its connection to the membership. Make the technology

fit the people, not the other way around.

As future credit union branches become more

digitally connected, it is this traditional value that

may just save branches from becoming irrelevant.

Your branch is only as relevant as it is to credit

union members, so make them the architects of your

technological experience as you create your branch’s future.

In addition to covering Branch BUSINESS for CUBusiness, Kaitlin is a freelance business writer basedin Central Washington State. She is passionate abouteducating her readers and is a proud credit unionmember and supporter of credit unions. You can readmore of her writing at www.kaitlinmorrison.com.

BRANCH BUSINESS

http://www.kaitlinmorrison.com


BY MURTHY VEERAGHANTA

Modernizing the Branch Experience Starts with Core

BRANCH BUSINESS

35

F inancial institutions all over the country

are welcoming account holders into a

modernized branch experience. This effort

is fueled by a desire to create a seamless

customer experience by evolving the branch

experience to be an intersection between the online

banking world and the physical branch. Embracing

these changing expectations is inevitable, but updating

the branch experience goes far beyond a fresh coat

of paint on a feature wall. To create a ‘branch of the

future,’ financial institutions need to create a foundation to build on, which means starting at the core. Choosing

a core processor that cuts costs, increases usability,

and enables them to hire and train talent easily, ensures

financial institutions are positioned for sustainable

success.

Your Legacy Core is Holding You BackLegacy systems are slow, stagnant and often sorely

overdue for a total transformation. For decades,

core providers have used symptomatic treatment as

problems arise rather than addressing the root issue

within their systems: lack of adaptability. A recent

survey by NTT DATA consulting showed that more

than 70 percent of banking executives felt that existing

tools and processes within their core system couldn’t adapt quickly enough to change.

However, financial technology is changing quickly, and financial institutions are spending a lot of money to keep up. In fact, a study from Opimas

estimated that financial institutions spent $127 billion on financial technology in 2017. The question is, with many core systems being more than 20 or 30 years old

and difficult to integrate with today’s technology, is this money well spent?

It’s time for financial institutions to seriously consider a core conversion. Archaic legacy systems are inhibiting

financial institutions’ capacity to pursue growth opportunities and enhance in-branch experiences.

A Flexible Core Cuts CostsFinancial institutions spend heavily on merely

maintaining their legacy systems. According to the

study by NTT DATA, banks allocate more than 70

percent of their IT budgets to maintaining their legacy

core deposit systems. Realistically, this cost is not going

to decrease as technological innovation continues, and

the majority of institutions agree that they anticipate

investments in their legacy core to either increase or

stay the same. Upgrading to a flexible core system can cut these costs significantly. In addition to sustaining their core to match

updated offerings, financial institutions often work with third-party vendors to handle regulatory and

compliance issues. When converting to a new core,

financial institutions can make this process easier and less expensive by selecting a core with APIs that allow

third-party vendors to build on the software easily.

Financial institutions can also seek a core system with

a variable structure.

Most executives think that a core conversion

could never save money and time because of the

headache involved with converting; however, the best

modern cores are database independent. They work

with whatever database the institution currently uses,

making the transition simple and cost-effective.


36

A Responsive Core Increases AccessibilityLegacy cores have long tied associates down, requiring

them to sit at a desk. Financial institutions should look

for an open, responsive and browser-based core system

that can increase employees’ mobility. Browser-based systems arm associates with the flexibility to open the software on any device, and highly responsive cores

look the same no matter which browser or device

they are using, creating a cohesive experience for the

employees that use them.

Not only does a flexible core system free up time on behalf of branch employees, but it relieves executives

from holding back on implementing innovative

products for fear of their legacy core not being able

to accommodate new products easily. Go-to-market

time can significantly impact consumers’ response to

a financial institution’s latest offering. For best results, financial institutions should bring an innovative product to consumers as soon as possible, but legacy

systems make this difficult. Many cores are so closed off that they require the core provider themselves to

add a new product or update to the system, slowing

down the financial institution’s ability to offer a new service. Open architecture cores that are parameter

driven are more accessible because they empower

financial institutions to add new products to the system easily. This saves financial institutions both time and money.

A Modern Core Raises the Bar for EmployeesAn updated core system can even enable financial institutions to hire younger, tech-savvy employees of

BRANCH BUSINESS

http://marketmatch.com/


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a higher caliber. Legacy systems are clunky to use,

and many younger professionals or technologically

experienced job seekers prefer to work in an

environment that uses systems with a level of

technology comparable to what they use in their

personal life. Millennials, especially, no longer request

adequate technology at their jobs; they demand it.

These employees also understand the value of data

and analytics. When financial institutions are looking for a core system that will allow them to hire well, it’s important to consider a robust reporting module that

permits employees to pull reports whenever they need

to as well as automatically.

When financial institutions become serious about overhauling their branch experience, they need first to take a look at their core and ask if it is hindering

them or enabling them to create success. Dated legacy

systems will continue to prevent financial institutions from delivering innovative products and quick, modern

service to their customers and members. Financial

institutions can’t expect to survive the age of Apple and Amazon if they insist on using archaic systems

that require huge costs and time to upkeep. Instead,

they must search for a core provider that will bring a

new level of efficiency and service to their branches.

Murthy Veeraghanta is chairman and CEO of VSoft Corporation, a global provider of information and technology solutions for financial institutions. Veeraghanta has more than 30 years’ experience in the financial services technology industry. He co-founded VSoft in 1996 and has grown the company from inception to a global company serving financial institutions that range in diversity from large, international banks, corporate credit unions and service bureaus, to small community banks and credit unions.

BRANCH BUSINESS


BY JIM ROMEO

Alexa, How Much Is in My Checking Account?

BRANCHTECHNOLOGY

38

I n early 2016, Capital One Financial blazed the

trail of using smart voice activation technology

for personal banking. A patron could simply ask

Alexa, the Amazon smart device: “Alexa, what’s my savings account balance?”

With all the courtesy and responsiveness that a live

human could provide, Alexa—an electronic device—

could audibly reply with the customer’s account balance. Adoption of this technology is growing in

the financial services sector. Credit unions are now on the cusp of adopting this and related technology for

their members, who increasingly expect their banks to

bloom with technology, automation, and ways for the

tech-savvy member to embrace digital technology. This

includes the voice movement—the same technology

customers can use in their smart homes.

The Voice Movement “The voice movement is

already well-entrenched

in a large segment of

the population,” says

Elizabeth Robins,

Product Director of the

Best Innovation Group

in Tampa, Florida.

“ V o i c e - a c t i v a t e d lighting, appliances, and

environment controls

make up today’s ‘smart home’ functionality. It is only natural that

activities like ordering

a car service, a pizza,

or a latte are becoming incredibly popular because

companies building voice apps for these services

are creating a frictionless ordering process. Voice-interactive financial operations are a natural step in this progression. As the systems that underlie this

functionality get smarter, and the data that fuels these

interactions becomes more widely available, we can

increase the breadth of features that voice services can

provide. Imagine what a Hall of Fame, a museum, or even a monument could be and do with this technology.

Instead of being defined by the past, we invest in the future. We continue to push the limits and challenge

ourselves to be a dynamic organization that comes

to life in classrooms, curricula, and competitions

throughout the country. In partnership with more than

1,400 schools and districts nationwide, we connect


39

BRANCH TECHNOLOGY

inventors with creative minds of all ages to provide

these future leaders with the experiences and tools they

need to help them realize their innovative potential.”

Banking in the Age of AmazonSmart home devices are available for retail purchase

and are affordable. As consumers become accustomed

to using these devices, institutions such as banks and

credit unions are opening the door to such technology.

Consumers are used to Amazon and the many

conveniences that the online behemoth brings, so

incorporating its technology in credit union branches

is a natural fit. “Customers interact with brands through artificial intelligence-powered natural-language conversational

interactions,” says Alex Chan, Senior Product Manager

with Central 1 Credit Union in Vancouver, Canada. “We’re already seeing large financial institutions in Canada and in other countries release applications

where the user interacts conversationally with Amazon

chatbots. Big technology industry leaders such as

Amazon, Google, Apple,

Microsoft, Facebook, and

Samsung are continuing to

invest in this technology at

price points that are attainable

by the masses. It’s interesting to note that by 2020, 30% of

web-browsing sessions will be

performed without a screen.

Many teens already use voice-

search technology daily, and

new audio-centric technologies

such as Apple’s AirPods, Google Home, and Amazon’s Echo are turning ‘voice first’ interactions into ubiquitous

experiences. By eliminating

the need to use your hands and eyes for browsing, vocal

interactions extend the web experience to multiple

activities such as driving, cooking, waking, socializing,

exercising, operating machinery, and more. By the end

of 2017, watch for room-based screen-less devices to

be in more than 10 million homes.”

Voice Activation in the Mainstream?Voice activation technology is not mature by any means, particularly in today’s credit unions. But this technology is attuned to the credit union member who

still wants to visit the branch to conduct his or her

financial business. Will this technology become mainstream? Some

think that it’s only a matter of time. “As credit unions seek to continually make life

easier and add value for their members, the use of

voice-enabled technology will play a key role,” says

Mickey Goldwasser, VP of Marketing for Payrailz, a digital payment company located in Glastonbury,

CT. “Voice is certainly not new, with voice response (VRU) still in use at many credit unions, but what is


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BRANCH TECHNOLOGY

exciting is the emergence

of voice-activated smart

devices such as Amazon

Echo, Google Home, and even Apple’s Siri. The question is not if we will

see this technology go

mainstream, but when?

The answer is ‘sooner

than we think.’ We are entering a new technological era driven by the ‘do it

for me’ phenomenon, or automation services driven by advances in machine learning, that has seen the

advent of self-driving cars, self-setting thermostats,

self-driven vacuums, robo-investors, digital personal

assistants, and the list continues to grow. There is

nothing easier than using our voices to make requests,

and this certainly applies to banking and payments.

Providing conversational banking and payments will

help address the demand for easy-to-use ways for

members to interact with

their credit unions and

access their accounts.”

“Once a credit union’s IT systems are equipped

with the interfaces that

allow mobile and voice

services, it becomes

possible for a wider range

of smart devices to provide

a ‘front end’ or enhance data interactions with the credit union,” says Ted

Bissell, Global Head of Digital Consulting at Axis Corporate. “Members might opt to share their current

location and designate where they prefer to be when

conducting sensitive transactions. Sensors on the farm

or equipment measuring the expected or actual yield

of a harvest, for example, can predict financing needs. Deliveries of raw materials to a manufacturing facility

can anticipate cash flows. For credit unions in places

where members spend a lot of time at the wheel of

their cars, a range of voice services optimized for the

constraints of the driver has yet to be developed.”

The full adoption of voice activation technology

will require good IT security hygiene to ensure that the

technology complies with security measures. Credit

unions and their staff must work to ensure that member

conveniences are at the center of these efforts in a

trusted environment.

“With the introduction of any technology, best

practices, security, and privacy must be in place before

the technology is implemented,” says Chen. “When

it comes to the implementation of voice activation

with smart devices, at Central 1, we have an entire

compliance team working behind the scenes to ensure

that best practices, security, and privacy are at front of

our minds with the implementation of voice-activated

transactions. Our team puts our innovative platforms

through industry best practices and rigor to ensure our

members are able to have convenience balanced with

security.”


4 BRANCHBUSINESS



Ted Bissell, Global Head of Digital Consulting at Axis Corporate.

Mickey Goldwasser, VP of Marketing for Payrailz



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A cold-pressed dilemma.A hot date for dinner.Every transaction has a story.

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http://www.pscu.com/credit