Podcast

How many loan applications does your credit union reject because of the applicant’s credit score?

Harder question: how many times are those credit scores erroneously lowered due to faulty information in credit reports?

Listen to Clint Lotz, ceo of TrackStar AI, and the answer is that plenty of loan apps are rejected for exactly those reasons.

What if your institution could harness machine learning tools to swiftly analyze a credit report and identity probable errors that when fixed would result in a 50 to 100 point jump in the credit score?

Sound good? That’s why you want to listen to Lotz as he talks about contemporary, cutting edge credit repair tools that will enable a credit union to empower a loan applicant to quickly initiate repair of his/her credit report and, in the process, position the credit union to comfortably grant the credit the applicant seeks.

How good does that sound?

Why haven’t you heard of similar before? Probably, says Lotz, because it is all new, enabled by the emergence of inexpensive cloud based computing (think AWS, Amazon Web Services).  But powerful cloud on demand computing is here and that has made it possible to analyze loan apps and credit reports in wholly new ways, says Lotz.

Along the way you want to hear what Lotz has to say about FICO.  No hints here as to what he says. But buckle up when this moment arrives.

Listen up.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

 NSF has become the new four letter within the financial industry.  While many institutions have grown dependent upon the $30 or so they charge a customer/member for an NSF, Washington DC is revving up to throw shame at FIs that impose those fees.

What’s a credit union to do?

A year ago we did a podcast with Joel Schwartz, founder of the then fledgling DoubleCheck, a company created to help consumers – and their FIs – better navigate NSFs. You are going to want to listen to that podcast – link here.

A lot has happened since that podcast. Washington DC has gotten more vocal about NSFs – you aren’t the only one having nightmares about the CFPB and Elizabeth Warren.

A lot of FIs – from Chase to B of A to many credit unions have slashed or eliminated NSF fees. You might think that this is curtains for Schwartz and DoubleCheck.

Think again.

There is the NSF and then there are the ripple effects such as late fees imposed by merchants and credit card companies. Often the late fees can add up to lots of money that inflicts still more damage and pain on a consumer struggling to stay afloat. That’s where DoubleCheck’s patented technology comes in. It gives an early warning to the consumer about late fees heading his/her way and it also offers alternatives (such as putting some charges on a credit card).

This is win-win. It’s good for the consumer and good for the FI (and it does not create bad press which doing nothing can).

You might think this will be a somber podcast, talking about bounced checks and fees and cranky politicians.  Be prepared instead to laugh. Schwartz knows what he is dealing with is serious stuff but he is a man who can see the lighter side too.

Listen up.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

 To start the podcast we asked NCR executive Doug Brown the hard question: exactly what can mid-size and small credit unions do to stay alive in the face of relentless competition from fintechs who increasingly are gobbling up home mortgages, p2p payments and a lot more – and what can NCR do to help them.

The questions only got harder from there.

In the podcast Brown tells about how to beat fintechs by achieving better member engagement.

We also talk at length about BNPL, where credit unions may find a piece of this action, and questions to ponder about BNPL. Does it make even a tiny bit of sense to pay for a $100 gourmet sandwich in four easy payments – and by the time you’ve paid it off do you even remember what you ate.

In this podcast you will also hear crypto currency brought very much to earth.  Brown tells how NCR is planning to use crypto and blockchain to revolutionize international remittances and how cool is that?  This may also be a fast track to bringing many under- and unbanked into the credit union universe if crypto helps them move money to relatives and friends faster and at much reduced expense.

Blockchain, maybe it’s not just for geeks anymore.

Listen up.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

 Brynn Ammon is on the podcast to tell us that it just isn’t true that old cores can’t learn new tricks – and she has plenty of examples of integration of new skills into core systems to enable credit unions to offer more and more useful tools to their members.

Reports of the death of the core have been greatly exaggerated suggests Ammon and in this podcast she offers an arsenal of evidence to show the contrary.

She even tells about Symitar’s work to integrate a Fiserv tool and, yes, that sounds like the Hatfields and McCoys making nice – but she insists it is true and it is part of Symitar’s push to integrate into its cores the tools that will enable credit unions to compete more effectively.  Even if that means cooperating with a competitor.

I will be honest, I went into this session thinking it would be as captivating as a talk on what makes a classic Singer sewing machine special.

Ammon proved my preconceptions wrong.

Listen up to find ways to get more value out of that core system in your institution.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

 Can AI – artificial intelligence – be harnessed to build and strength member relations, indeed to know what this member is likely to do right now?

That is the guiding belief at Senso, a Canada based AI company that now is expanding into the US market with a specific focus on credit unions.

It is no secret. The credit union share of the home mortgage market has steadily eroded, as nimble fintechs grab more business. Smart AI just may give credit unions an edge in recapturing marketshare.

The Senso promise is intriguing. When an institution has the right data it can predict with significant accuracy when a member is about to shift from being a home looker to a buyer.

The answer is in the data, says Saroop Bharwani, Senso’s founder/CEO.

Right now the Senso focus is on home mortgages but, he says, the same tools will work on car loans, credit card balance transfers and more.

Here is how Senso describes its approach: “Senso creates connected and contextual lending experiences, powered by predictive intelligence.

We enable enterprise customers to identify and engage borrowers with personalized proactive experiences.

We empower consumers with rich insights & experiences to help them make smart decisions through their home finance journey.”

Integration of Senso tools – which are available white labeled – is comparatively quick and easy through the leading online banking platforms. 

Right now, the primary Senso aim is at institutions with a billion in assets – but if a smaller institution is using an online banking platform that Senso already has integration tools for, the company wants to talk, says Bharwani.

Listen up.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

 

by Robert McGarvey

The name is pronounced CU Soul and know that the CUSO’s focus under CEO Jonathan Taylor is indeed on soulful solutions to member problems.

You almost want to cue up “Soul Man” and break out in song.  

But these are very serious, thoughtful and – yes – quirky solutions that are getting cooked up at the Albuquerque-based CUSO, formed in 2019 and owned by four credit unions located in New Mexico, Washington DC and Guam. They range in size from well over $1 billion to around $30 millon.

The owners did not create CU Sol to provide cookie cutter products.

Nope.

These are products that are unique and they also are laser focused.  

Consider CU SAFE: “CU SAFE is an indirect lending solution created by CU Sol that supports survivors of domestic violence. Its mission is to provide a hand up for survivors of domestic violence in providing both credit and financial counselling as well as lending options by pairing organizations that support survivors of domestic violence with partnering credit unions,”spells out a press release.  

Another product is Accelewage which starts with the building block that each day an employee works he/she has earned money. Now what if that employee needs a fast $300 – perhaps for an emergency car repair – but doesn’t have available credit?  He could go to a payday lender.

But isn’t the better choice simply to make the employee a cash advance against accrued earnings?

Taylor sees Accelewage rolling out initially to credit unions themselves where many employees live paycheck to paycheck.

But then the tool can also be offered to business members too and that could be a powerful persuader in getting new business accounts.

Taylor also has a range of ideas about innovative insurance products to be offered through the CUSO.

Nowadays the talk is how CUSOs have to be highly focused – and, yes, original – to survive.  CU Soul is definitely both

Listen up.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

by Robert McGarvey

Crypto is now, it is happening.

Happy New Year!

Our first show in 2022 is about a topic that you will likely will be hearing a lot about this year: Crypto currencies. And what you may not realize is that with crypto in play the financial institution stranglehold on wire transfers may slip. Even worse, credit card interchange may vanish.

Now do we have your attention?

Crypto brings risks but also possible rewards for smart players.

On today’s show is Larry Pruss, crypto lead at consulting firm SRM (Strategic Resource Management). and, says Pruss, crypto is streaming at you at full speed

Proof is that NCUA in December offered guidance about how credit unions should interact with crypto vendors.

Maybe the biggest risk to credit unions is that evidence mounts that many members will leave a financial institution that doesn’t offer crypto related services for one that does.  At the very least they will move money out of your credit union into an institution that trades in crypto.

We may well be at a perilous moment for traditional FIs as DeFi (decentralized finance) moves onto center stage.

How to get involved in crypto with minimal risk? Pruss offers suggestions in the podcast and, from my perspective, the easiest way to stick a toe into these digital waters is by offering crypto rewards.  More institutions – Venmo for instance – already are on this but there remains running room for credit unions that want to play.

And Pruss has other suggestions.

This is a fast paced podcast. Inside 40 minutes you will hear what you need to know to play in crypto. Smartly.

Listen up.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

by Robert McGarvey

 Walt Agius knows credit union lending.  And he especially knows what credit unions need to to stay competitive in the 21st century.

Consider this podcast a deep dive into today’s lending.

The guest is Walt Agius, CEO of Lendsys, a fintech, and also CU Lending Edge, a CUSO that today focuses on car loans but, says Agius, he is looking to extend the portfolio. 

In the past he was CEO of CU Sol, a CUSO, and also CEO of California Bear Credit Union.

He really knows lending, especially car loans.  

In this podcast Agius offers tips about how to make indirect auto lending work for the credit union (and, yes, he knows many credit unions have grumbles about indirect lending).

He also throws out the idea that every credit union should be looking hard at syndicating every loan that comes in the door.  That strategy dramatically limits risk.  He said he would want to keep perhaps 10% of most loans but he would want to sell the other 90% of other participants – and this collaborative way is a particularly credit union mindset.  

Listen up.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

 Put your brainstorming hat on. You’ll want it as you listen to this podcast that serves as a preview of the January 20, 2022 CU 2.0 Brainstorm event that will gather together fintech leaders and credit union executives for a day of lively presentations (topics to be chosen by the attendees) and conversation.

 Consider this podcast a mini preview of what the Brainstorm event will feel like.

Joe Cianciolo talks about how HomePace – a fintech that makes home equity investments that may be tapped by homeowners and buyers without taking on debt.  

Chief information officer Kenzie tells about the tech priorities at Patriot Federal Credit Union, a $900 million institution – and he tells what he looks for in the fintechs he works with

Drake tells about the urgency of matching up credit unions and the right fintechs and the challenges of making it happen.

It’s a show that will leave you more informed and also energized.

Listen up.

Want more info on the Brainstorm event? Click here.  There’s a sign up tool at the same site.

Want more from Cianciolo? You  got it.  Here’s an earlier CU 2.0 podcast with him from June 2021.

Want more on the CU 2.0 Mastermind group? Here’s a November 2020 podcast on it.  

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

By Robert McGarvey

 BNPL.  Remember that because you soon will be using that abbreviation often.

It stands for Buy Now, Pay Later and it is just about the hottest trend in payments at retail.

Today’s US market is small, maybe $50 billion but forecasts show the BNPL market crashing into the many hundreds of billions of dollars by the middle of the present decade.  And then the numbers start to get dizzily huge.

Why so much interest?  Oldtimers will recall that BNPL was a staple of 1950s retail but as credit cards proliferated it receded into the background.  But now it is again hot and that’s because it speaks to the purchasing needs and desires of Gen Z and young Millennials.  Why don’t they just slap down a Visa card and put it on credit? The advantage of BNPL to them is that they know the total cost of purchase when they make it.  The full payments amount, spread out over an agreed upon number of months, is there to see.

Pay the minimum on a credit card purchase and suddenly the total amount paid can vault much, much higher.

So the younger generations are hopping aboard BNPL which, right now, is largely used for consumer purchases of a few hundred dollars to maybe a few thousand.

Right now it’s mainly fintechs that are playing hard in this space.

But Scottsdale AZ based equipifi is a fintech that wants to enable credit unions in particular along with some banks to play in this space.

In this podcast with co-founder and CEO Bryce Deeney you will hear about equipifi’s secret sauce which is software that can approve and fund a BNPL loan at retail in under a minute.

No application is required. No FICO score is checked.

The basis for the loan is knowledge of the history of the member’s checking (sharedraft) account and insight into how much surplus money generally is in the account.  So that’s a solid basis for forecasting that this consumer can in fact handle this monthly payment.

In the podcast Deeney tells in detail exactly how equipifi works along with how it is integrated into the core.

Any credit union that wants more members under, say, thirty years of age needs to listen and take notes.  

Keep listening and you will hear the equipifi has plans to roll out a BNPL service for SMBs too.  How cool is that?

Listen up.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto