Help Your Credit Union Take the Technology Leap

There’s much more expanding the divide between large and small credit unions than their asset size – there’s technology. There are numerous technology offerings that have become the norm for larger credit unions such as remote deposit capture, mobile banking and apps, online banking and online applications. But are these technology offerings out of reach for smaller credit unions? 

A recent study from Callahan & Associates discovered that only 21 small credit unions nationwide had the above technology offerings. The study also showed that these 21 credit unions routinely outpaced similarly sized credit unions in share draft, auto loan and credit card growth. The tech-savvy credit unions also had a higher average member relationship balance than credit unions with a similar asset size: $10, 439 compared to $8.966.

Affordable Technology

If you’re a smaller credit union that hasn’t kept up with larger ones, there’s good news – the cost of technology is becoming consistently more affordable. Online banking and online applications for membership, loans and credit cards have come down in price over the past couple of years. Plus, there are plenty of turnkey versions of these technology offerings out there that can fit even the smaller budgets, and could offer a sizable return on your investment.

The world of technology, especially finance technology, seems to be growing and morphing at a pace that’s too fast. Especially if you’re looking to catch up. But don’t let that intimidate you. Determine what technology would best benefit your credit union and start there.

Why Mobile Banking?

If you’re still not sure, then you might want to start with online and mobile banking. The recent Credit Union Satisfaction Index from CFI Group found that for members, online and mobile banking are the most important aspect of their credit union experience. Another report, this one from Monitise called The Mobile Money Landscape: Market Statistics and Expert Views, reveals that 51% of U.S. adults, or 61% of Internet users, bank online while over 50% of the U.S.’ 5,800 commercial banks now offer some form of mobile banking.

No matter what technology product or service you want to offer your members next, CU Solutions Group has affordable options for nearly any size budget. From online member applications and loan applications to mobile banking and more, we’ll make sure you’re making the best technology decision for your credit union.

Time to Rethink How Your Credit Union Grows its Mortgage Volume?

We always like when we can share good news with our credit union readers. A recent report from Inside Mortgage Finance shows that approximately $310 billion in mortgages were reported for the second quarter of 2014. That’s an impressive 32% increase.

There are numerous possible reasons for this increase: the Fed’s bond-buying program that’s helped to push mortgage rates to historic lows; the harsh winter delayed many homebuyers from actively searching and the current warmer weather is bringing them out; and the slowly improving economy and job market.   

Chances are your credit union has noticed an upswing in its mortgages. We advise that instead of waiting for the loans to roll in, now is the time – more than ever – to get proactive in growing your credit union’s mortgage volume.

Mortgages were already top-of-mind for many credit unions for 2014. In the Financial Brand’s annual “State of Marketing in Retail Banking” study, 67.3% of responding financial institutions ranked mortgage loans/refinancing as their second most important strategic goal, mobile banking solutions took the number one slot. The study included 300 financial institutions, about half of which were credit unions. You can effectively kill two birds with one stone by combining mobile banking and mortgages. That leads us to our first tip ...

Growing Mortgage Volume

1. Go Mobile
   Have a mobile app that not only lets members apply for a mortgage, but helps simplify their home search as well. Your members are getting more and more used to doing everything on their smartphones or tablets, and they’ll soon expect to be able to completely interact with your credit union that way.  Consider mobile capabilities that would let them electronically verify your receipt of their mortgage application, check their loan status and submit supporting documents if needed. Those financial institutions who can adapt to borrower behaviors the fastest will win.
   
2. Enhance the Process
   You might think your credit union’s process is nearly perfect, but there’s always room for improvement. Take another look into streamlining your loan approval and disbursement process. Offer online and/or mobile applications. Or you could team up with a CUSO to facilitate the process. Mortgage Center in Michigan is one example of a full-service mortgage company that’s credit union-specific.
   
3. Get Your Whole Credit Union Involved
   One of your credit union’s best marketing resources are its staff and members. Encourage them to bring in new mortgages with a referral reward program. Your tellers and loan officers are also your best advocates to grow loan volume, train them to cross-sell products at every touch point with your members. Also, position your credit union as “the” financial resource for your members and offer financial education/literacy classes, articles, calculators or other resources, linking them to your loan products.
   
   
4. Promote with Innovation
   If your old marketing strategies could use some sprucing up, we’ve got a few ideas.
   
   • Websites like Zillow lets credit unions and banks advertise in their Mortgage Marketplace or co-market with local listing agents.
   • Use your big data and identify members with mortgages at other financial institutions who meet your loan/credit criteria so you can target them specifically. This approach will help you conserve your marketing dollars and free up staff for qualified borrowers.
   • Use word of mouth by holding a Facebook contest or other social media platforms to ask members to talk about their experience getting a mortgage at your credit union. This not only encourages online interaction and creates positive PR, it also gives you a bank of member testimonials that you can use in all aspects of your marketing campaigns.
   
   
5. Be Prepared
   CUNA says credit union loan balances are expected to rise 9.6% in 2014 and 10% in 2015. When you consider that houses sell, on average, in about two months of being on the market, your credit union needs to be prepared to give borrowers the information they need immediately, anytime, anywhere. And keep in mind that most borrowers don’t consider PFI loyalty when shopping for a mortgage. Accenture found that only 40% of consumers took out a mortgage from their PRI last year.  

Finding new ways to grow your mortgage volume can seem a bit overwhelming at times. CU Solutions Group has loan growth experts, so feel free to contact us if you need assistance. 

The Ultimate Online Experience for Credit Union Members

One of the first impressions a current or potential member has of your credit union is devised through its website. It might be time to take a look at your website through fresh eyes and see it as your members or future members might see it. For current members, you want it to be more than just a bookmarked portal to your online banking site. For potential members, you need it to showcase your credit union’s personality and brand as well as quickly illustrate everything your credit union has to offer them. It’s all easier said than done, right? Maybe not …

A recent study from a financial industry research firm, Moebs Services, uncovered that financial institutions are either overlooking or underutilizing their websites. The study evaluated website information from 1,676 financial institutions nationwide. A major finding was that credit unions outshone banks with availability and consistency of website information. 

Apart from making product and service information easily accessible on your website, there are a few other ways your credit union can give members the most it can on its site. Online membership and loan applications as well as friendly member service with secure live chat can help ensure that you keep your members’ interest and loyalty. Finally, you want your members to see your website the way it was meant to be seen – regardless of how they’re accessing it. This can be accomplished by using responsive design when updating your site, enabling a positive and consistent online member experience on smartphones, tablets and laptops.