This week, CreditUnions.com finds two credit unions with robust journey mapping strategies as well as a cadre of executives who offer advice for analytics programs, profiles another who converted some 16 systems in a single year, and more.
Here are five can’t-miss data points:
Journey mapping has become a go-to way for a growing coterie of credit unions working to reduce process friction and improve the member experience by examining how that service is delivered every step of the way. United Nations Federal Credit Union and All In Federal Credit Union are but two examples of financial cooperatives who have taken that trip, going beyond the flip charts to make the journey an iterative process that learns as it goes. Each took its own path: UNFCU initially used a consultant to help facilitate the work, while All In has a manager who leads each journey while making it part of the training regimen.
Read: Beyond the Flip Chart. 2 Credit Unions Approach To Journey Mapping The Member Experience.
Callahan & Associates premiered its Executive Roundtable program in 2011, gathering small groups of credit union leaders to network, brainstorm, and commiserate with peers during two-day getaways held throughout the country. Since then, these gatherings have evolved into true cooperative events. Participants drive the agenda via pre-event interviews and on-site input. There are no guest speakers or sales pitches, just peers from the same area of their cooperatives e.g., CEOs, chief lending officers, chief financial officers, etc. talking shop and learning from one another. The conversations that take place during Callahan’s Executive Roundtables are strictly confidential; however, a five participants agreed to talk on the record about their analytics journey.
Read: Expert Advice From Analytics Debuts And Do-Overs
In 2018, Sandia Laboratory Federal Credit Union underwent two major conversions that were both years in the making. The credit union, which serves high-tech and professional communities in Albuquerque, NM and Livermore, CA, converted its online and mobile banking in March and then its core system in November, to say nothing of the ancillary systems that needed updating in the change. Although the two projects shared several aspects including motivation, project team members, and timelines the underlying story of the core conversion dates back nearly 40 years.
Read: A 16-System Conversion Success Story
Member experience has been important to credit unions since the beginning of the movement, but evolving technology necessitates a stronger game when it comes to stellar service. Fortunately, credit unions have historically scored well in consumer satisfaction results. Temkin Experience Rating, which ranks customer experience based on thousands of consumer surveys, gave credit unions an 83% in its 2018 rankings. By contrast Chase, PNC, and U.S. Bank, all earned a ranking of 75%. Despite that difference, credit unions can’t rest on their laurels. Competition from banks as well as fintechs is fierce and getting fiercer.
Read: 5 Ways To Provide A Winning Member Experience
Asset quality at U.S. credit unions improved across the industry in the first quarter of 2019. Total delinquency decreased 8 basis points year-over-year to 0.58%. This represents the third consecutive year of annual decreases, and credit union delinquency is now at its lowest level since 2007. Banks insured by the FDIC reported an average delinquency rate of 0.99% a full 41 basis points higher than the credit union average. This is all the more notable given that banks report delinquency after 90 days of nonpayment whereas credit unions report after 60 days. Also notable at credit unions is the fact delinquency is lower than one year ago in all loan products save credit cards.
Read: First Quarter Trends In Asset Quality