Improving Member Self-Service Options to Optimize the Digital Banking Experience
Consumer expectations are quickly transforming to fit the digital age in which we live that is marked by endless on-demand, self-service options. Today, we expect the ability to quickly and easily find answers to our questions, shop offers, complete transactions and more on our own terms by simply clicking a button at a time and place of our choosing – banking is no exception to this expectation. A Harvard Business Review study indicated that 81% of consumers often attempt to self-serve across industries before reaching out to representatives for assistance.
This rising demand for convenience means many members are asking for more modern digital self-service from their credit unions. However, meeting these demands often requires credit unions to implement considerable shifts in their communication styles and digital banking platforms.
Shifting the Credit Union Customer Experience
Historically, many credit unions have long relied on the strength of their human-centered services, often made possible with caring, attentive staff, to support their members. For some institutions, this has meant delays in embracing more advanced do-it-yourself banking technology in favor of placing greater importance on the reliability of person-to-person interactions to address each member’s banking needs.
The shift to increased digital interactions may seem to be a loss for credit unions, as it moves member focus away from the institution’s hallmark advantage – its personalized human approach to customer (member) service. However, credit union leaders must also consider what they stand to gain by offering members greater autonomy and reducing staff time spent assisting customers. Enabling members to complete simple tasks independently gives credit union staff additional time to devote to more concentrated banking activities to support members, such as individualized financial wellness consultations or financial guidance classes. Recent studies have found that 72% of customers rate personalization as a “highly important” element of the financial experience today.
Although human channels offer a personable touch to credit union communications, combining this offering with a strong digital channel is quickly becoming the key to creating a compelling value proposition that will retain and attract new members. An American Express study found that more than six in 10 consumers say that digital self-serve solutions (i.e., websites, mobile apps, voice response systems, online chats) are often their go-to channel for simple tasks and inquiries.
Consumers want to use digital banking channels for simple transactional activities. A survey indicated that they also crave hands-on interactions for more complex products and services, such as financial advice. Meeting consumers’ expectations for strong digital channels paired with reliable human resources when needed will prove to be a compelling differentiator for credit unions up for the task of embracing self-service channels and shifting the responsibilities of their in-person team.
How Credit Unions Can Focus on Self-Service Functionality
Once a credit union has resolved to focus its efforts on providing digital self-service opportunities, what tools should be implemented to transform the customer experience? It’s important that credit unions prioritize using features that directly support each member’s ability to have control over their banking experience and engage in financial interactions on their own terms. The answer to providing this control often lies in optimizing the credit union’s online and mobile self-service features and functions to offer members a single touchpoint to address their banking needs.
Troubleshooting Support
Customers want to solve their financial problems quickly and effectively, without the need to wait for answers based on staff availability. To meet this convenience expectation, credit unions can institute 24/7 automated chatbot support, available through both the website and mobile banking app, to readily connect with members. Providing this service helps ensure that members have an easily accessible resource to turn to for resolving requests as close to real-time as possible. Credit unions that offer this support are more likely to form stronger member relationships – in fact, 49% believe that receiving instant support is a key factor in building brand loyalty.
Account Management
Up-to-date account activity is also among the most fundamental digital banking features credit unions can offer their members, which enables them to easily keep track of their finances through regular reviews of their recent transactions. Members should have the ability to conduct comprehensive searches through their account activity based on dates, locations, amounts, etc.
Movement of Money
Being able to independently control the movement of account funds through a seamless digital experience has quickly become a primary expectation for many members today. Features related to this need include account-to-account transfers that allow customers to transfer money to multiple accounts within the same financial institution, as well as bank-to-bank transfers that enable members to transfer money between their different external accounts. Rather than requiring members to visit their credit union in person and fill out paperwork to make these funding transferences, many organizations are adopting convenient online signing capabilities to streamline the documentation process through the use of e-signatures.
Mobile deposits have also become an important differentiator for many credit unions as it gives members the freedom to place money within their account on their own terms. With this self-service feature, members are granted the autonomy to scan their checks through the mobile app to be deposited into their account, without the hassle of waiting to submit them during the credit union’s hours of business.
Security
Lastly, members’ ability to ensure their account is secure has come to the forefront in light of rising financial fraud instances. Real-time card control services enable members to disable the use of their card and restrict new transactions in the case that it is misplaced or stolen. With this feature, members feel confident and fully in control of their finances regardless of unexpected circumstances that may arise.
By offering members more self-service capabilities, credit unions can enhance and streamline lengthy banking processes. The more effortless members’ digital experience becomes, the easier it will be for credit unions to attract and retain new members, as well as improve their long-term loyalty.
Delivering the Self-Service Opportunities Members Want
South Carolina-based Carolina Foothills Federal Credit Union (Carolina Foothills) with $192 in assets and more than 18,000 members, was one of many credit unions with a more traditional banking experience that needed a modern refresh. Previously, its members had to speak to the credit union’s staff over the phone or in person to carry out several functions, from managing their financial activities to resetting their account passwords. After fielding numerous member requests for digital banking system enhancements and increased self-service options, the credit union recognized a need to modernize its traditional banking services. As Carolina Foothills sought a new provider, they intended to offer members greater autonomy in their account management and explore technology that could streamline their customer experience.
Terri Hendrix, Vice President of Engagement at Carolina Foothills, said, “We wanted to explore technology that could enable us to modernize our digital presence, match the capabilities of larger banking institutions and offer members the independence they wanted. We aimed to reduce the need for members to rely so heavily on staff for mundane tasks, knowing that the technology that could enable them to conduct these activities at their leisure was out there.”
The credit union ultimately selected Mahalo Banking to optimize its digital banking presence and enable greater self-service functionality for members. Since launching the digital banking platform, Carolina Foothills has been able to provide several new self-service capabilities including a streamlined login reset process, credit card lock options to ensure 24/7 protection and mobile access to loan and membership applications.
Hendrix added that while providing access to self-serve features allowed the credit union to grant members greater convenience, it also gave staff additional availability to assist in specialized interactions that strengthen members’ financial wellness. With the digital platform enabling members to independently address more of their banking needs, the Carolina Foothills staff activities have shifted to focus on member education, providing financial tools and offering more hands-on financial coaching to each member as needed.
Looking to the Future of Self-Service
Now is the time for credit unions to embrace new technology and forgo the traditional, now outdated means of servicing members. Self-service technology has the power to significantly expand credit union growth and transform members’ banking experience, as well as provide organizations with the distinct differentiator necessary to compete in the current market.
While self-service technology has an important role to play in granting members more banking autonomy, credit unions’ hallmark “human” touch will continue to be crucial for offering hands-on support needed during pivotal moments in members’ financial journeys. Rather than replacing the personable guidance credit unions are known for, self-service will enrich members’ customer experience and enable credit unions to better leverage their staffs for high-value services.
About Author:
Denny Howell, Co-founder and COO
Denny Howell is the co-founder and COO of Mahalo Banking, a CUSO that provides online and mobile banking solutions for credit unions. He is an experienced entrepreneurial industry leader with a demonstrated 20+ year history of working in technology, services, financial and fintech. Denny is also skilled in analytics, strategy, UX, online and mobile banking, agile and process improvements and project management.