Podcast

 The pace of change at credit unions is quickening.  That’s the central message from Doug Brown, senior vice president and GM of Digital Banking at NCR.

In a wide ranging conversation, Brown explores five key trends:

* Channels quickly collapsed in 2020 as digital and physical experiences merged; this is only expected to accelerate next year. Experiences were ‘de-channeled’ as physical and digital experiences converged.

Banks and credit unions are now operating in a more dynamic, distributed model, causing de-channeling to occur at a rate much faster than initially expected, in some cases three or more years ahead.

* Branch strategy will shift to accommodate the evolution of self-service. Branches will remain relevant, but they must adapt to become part of the larger ecosystem. There will be a continued evolution of self-service, one that includes leveraging technology to provide touchless alternatives and increased automation to enable continued access to cash.

*The ATM will remain a critical touchpoint and utilize expanded functionality. ATMs are not going away. They are just getting smarter, more capable, and more fully digital.

* An increased focus on end-to-end delivery and management. Consumer behaviors will be dynamic into 2021 and beyond. Being able to quickly modify digital experiences and business structures to accommodate customer needs and provide a consistent user experience regardless of channel will be a competitive imperative moving forward. This is all part of the profound shift toward digital first banking.

* Small business earns bigger focus. The pandemic disproportionately impacted small businesses and gig economy workers; they faced a drastic liquidity crisis. Small and micro businesses have experienced a heightened need for financial advice and guidance. This year, we saw many community and large regional banks step up and help businesses through PPP loans, even when the national institutions elected not to. This has caused the smaller and mid-tier institutions to win market share and gain new business accounts, a significant opportunity.

Listen up, Brown in this podcast offers a vivid picture of an existing credit union experience that blends digital with legacy banking.

Hear the Brown podcast here.

In this podcast, mention is made of the new digital bank, Lili. Story here.

A related podcast is with Octavio Marquez, a senior VP ar Diebold Nixdorf. Listen here.

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

We’re back.  After a hiatus we have resumed recording The Cooperators Podcast…drum roll…presenting the current podcast with Adam Trott, executive director of the Valley Alliance of Worker Cooperatives which aims to stimulate formation of new worker co-ops in western Massachusetts and southern Vermont.

VAWC also helps existing worker co-ops perform more successfully.

VAWC members include Collective Copies, a copy and print shop, Green Mountain Spinnery, which makes yarns,  Oxbow Design Build, which offers design and construction services, and Pedal People which is a human powered trash and recycling service in Northampton Mass.

Trott acknowledges that his geography is a fertile breeding ground for worker cooperatives: “They have been in this area since the 1970s.” So knowledge of them is high.

In this podcast Trott talks about the obstacles to starting a worker co-op, the benefits they bring to their community as well as to the worker owners, and why some worker co-ops succeed and others fail.

Consider this talk a primer on how to get this done – and know that in the current economic downturn interest is high in this alternative form of ownership.Listen in to hear the past, present and possible future of worker co-ops.

Fyi: The Cooperators Podcast has often focused on worker co-ops. Past episodes include Esteban Kelly,  Melissa Hoover, Frank Shipper, and Alex Stone.

Trott’s other gig is with Shared Capital and, earlier, we did a podcast with Christina Jennings, executive director of Shared Capital which helps finance co-ops.

Listen to the Trott podcast here.

 by Robert McGarvey

A dirty secret inside credit unions is that many frontline workers – and very possibly most senior staff – just do not use their institution’s digital banking tools. Why bother when you work in a branch?  Just walk up to a teller and, whoosh, task handled.

And then along comes a pandemic that closes many branches, and makes many members and employees leery of setting foot in the open ones, and suddenly there is a stampede to adopt digital.  A couple problems however.  A lot of the institution’s staff cannot adequately explain how to use the tools because of their own lack of familiarity and a lot of the members who are newly adopting digital are starting at ground zero and genuinely need help.

Enter John Findlay’s Digital Academy, a SaaS (software as a service) tool that aims to solve both problems for credit unions.

Better still: right now there is a 90 day free trial because, says Findlay, the company wanted to do its part in helping financial institutions and their members and customers meet the challenges posed by the Covid-19 pandemic.

What Digital Academy gives financial institutions is an automated way to create an instructional walkthrough that can be used by members and employees alike. How easy is it to create this? Often an institution can create a walkthrough for, say, Mobile Remote Deposit Capture in perhaps a half hour, says Findlay.

How can it be that easy? Remember, it’s automated.  Basically the credit union grabs perhaps a half dozen screen shots. How simple is that?

The cost? Findlay says the company’s tool kit is available for a fee correlated to asset size. An institution in the $100 million range might pay around $15,000 annually. An institution with $1 billion in assets might pay $100,000 annually.

He stresses that significant staff technical expertise is not required to create an instructional walkthrough.  The aim of the tools is to democratize the creation of learning tools.

You wish you already had it? Remember that 90 day free trial…and, says Findlay, so far every institution that has taken the trial has chosen to sign on as a customer.

Hear the podcast to find out why Findlay developed the Digital Academy tools and more details about exactly how easy they are to use.

In the podcast there is mention of a CUBroadcast show – here’s the link.

There’s also mention of a podcast about the CU2.0 Mastermind group – link here.

Listen here.

Get your FREE ticket to the December 9th CU2.0 Fintech Mastermind Presents Showcase Day 2020.  This is the first of its kind event where CU 2.0 has brought together the industries’ top leaders form well known Credit Unions and paired them up with top Fintech experts in one place! Our subject matter expert will help you and your organization tackle the top issues we face today with unique master classes, tailored for folks just like you.

Get your ticket at Eventbrite. Click here.

Read up to learn more about Mastermind groups here in this CU2.0 blog post.

Hear the first CU2.0 Mastermind podcast here.  In this episode Kirk Drake and Dr. Patty Ann Tublin, who facilitates the CU2.0 Mastermind groups, talk about why and how Mastermind groups work and who will benefit from them.

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

Is now the time to bury the ATM?

A few months ago the answer looked like a definite maybe but now, says Octavio Marquez, Senior Vice President and Managing Director, Global Banking, Diebold Nixdorf, ATM traffic is up across much of the US and oftentimes it is higher than pre-pandemic levels had been.

What’s happening, says Marquez, is that financial institutions – credit unions very much included – are rethinking their branch networks and in that process many are also rethinking the role of the ATM.  That new look at ATMs is accelerated by the reality that many of us are seeking to minimize person to person interactions.  And financial institutions are also beginning to look at the ATM as not just a piece of machinery but as a useful player in digital banking.

Along the way, Marquez talks about new uses for ATMs. They no longer are just about spitting out money and taking deposits. On many we can now pay utility bills.  Some can also perform KYC chores for a credit union. Some can print out and distribute a new debit card.

Clearly it’s no longer simply your father’s two note machine.

The podcast opens with a brief discussion of a new partnership of Truliant Credit Union and Diebold Nixdorf where DN All Connect Services are now available to Truliant members.  Said the press release, “The comprehensive service will increase branch and ATM channel efficiency, offer enhanced digital integration and provide members with modern and convenient self-service banking options.”

Rik Kielbasa, chief digital officer at Truliant, said: “Our expanded partnership with Diebold Nixdorf will help us anticipate future market needs and develop even stronger connections with our members. User expectations around ATM services are constantly evolving, and enhanced functionality allows us to exceed these expectations and increase service levels. Implementing DN Allconnect Managed Services offers opportunities to continuously optimize the member experience so we never miss a moment with them.”

In the same press release, Marquez said, “Together, we’re on a mission to amplify Truliant’s membership through a truly consumer-centric, highly-available ATM experience.”

Listen up.

Get your FREE ticket to the December 9th CU2.0 Fintech Mastermind Presents Showcase Day 2020.  This is the first of its kind event where CU 2.0 has brought together the industries’ top leaders form well known Credit Unions and paired them up with top Fintech experts in one place! Our subject matter expert will help you and your organization tackle the top issues we face today with unique master classes, tailored for folks just like you.

Get your ticket at Eventbrite. Click here.

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

Ask Larry Nichols, CEO of Member Driven Technologies, a Michigan based CUSO, what’s in the future for credit unions and he has a one word answer: Digital.

Actually, that oversimplifies the answer because in this podcast Nichols and I talk for about 40 minutes about what’s next and he in fact ticks off four basic themes:

* Digital banking – by which he means many, many things besides mobile and online banking. E-signatures for instance. Also digital account opening.  Digital is the future of banking.

* The evolution of the branch

* The new need for business continuity planning

* The need to find new ways credit unions can support their communities in this time of need.

Along the way, Nichols evangelizes for cloud based core systems, the central MDT focus.  Around 106 credit unions are MDT core customers and, Nichols says, this is a way to have the latest technologies – but to leave the hefty lifting to professionals.

He’s probably right. Many credit unions would benefit from turning their cores over to a third party to manage in the cloud.

There are explanations about why that is so in this podcast.

The podcast starts with the question: How many member owners are there for your CUSO? The answer will surprise you.

A technical matter: after the podcast was recorded, Nichols emailed to say he had misremembered the date when MDT first offered mobile banking.  That wrong date has been erased and, in my voice, you will hear the right date, 2008.  Larry’s voice did not inexplicably change.  It’s my voice.

Also for the record, the Apple iPhone was introduced in 2007.

Listen up.

Get your FREE ticket to the December 9th CU2.0 Fintech Mastermind Presents Showcase Day 2020.  This is the first of its kind event where CU 2.0 has brought together the industries’ top leaders form well known Credit Unions and paired them up with top Fintech experts in one place! Our subject matter expert will help you and your organization tackle the top issues we face today with unique master classes, tailored for folks just like you.

Get your ticket at Eventbrite. Click here.

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

Suddenly, the question for just about every startup is, “What’s the name of your podcast?” From janitorial companies to playwrights, a podcast has emerged as a must-have for small business success — maybe even survival — and pandemic realities have, if anything, accelerated and deepened that trend.

Continued at Startup Savant

This is a special CU 2.0 Podcast where the aim is to take listeners inside the CU2.0 Mastermind group where credit union executives and fintech executives join together to explore new ideas, to review problems, and together – by sharing wisdom and experiences – join in reaching higher levels of success.

In this episode Ray Crouse, CEO of Parsons Federal Credit Union and board chair of NACUSO, Darryl Hicks, CEO of fintech FlexPay, and Kirk Drake, founder of CU2.0 talk candidly about Mastermind groups and along the way you will get a sense of the flavor of what a Mastermind group really is and how it works.

Consider this a glimpse into how a group works.

In this podcast you will hear personal testimony from all three on what they are getting and have gotten out of Mastermind groups – and both Drake and Hicks, longtime members of Mastermind groups, offer vivid reports of exactly how Mastermind groups have benefited them, personally and professionally.

Listen here.

Get your FREE ticket to the December 9th CU2.0 Fintech Mastermind Presents Showcase Day 2020.  This is the first of its kind event where CU 2.0 has brought together the industries’ top leaders form well known Credit Unions and paired them up with top Fintech experts in one place! Our subject matter expert will help you and your organization tackle the top issues we face today with unique master classes, tailored for folks just like you.

Get your ticket at Eventbrite. Click here.

Read up to learn more about Mastermind groups here.  

Hear the first CU2.0 Mastermind podcast here.  In this episode Kirk Drake and Dr. Patty Ann Tublin, who facilitates the CU2.0 Mastermind groups, talk about why and how Mastermind groups work and who will benefit from them.

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

Branches are not going away.  That’s a firm belief of Nathan Rogers, a longtime financial services executive who has spent many years in shared branching – a feature he calls a significant credit union strategic advantage.

Yet now, amid the pandemic, many credit union executives are talking. about pulling out of the shared branching networks.  Why bother with it if nobody is using the branch?

Ask Rogers and he sees that thinking as short-sighted and in fact now is the optimum time to offer shared branching and thereby provide more member service without the expense of opening and staffing a branch that may in fact have an uncertain future.

Back up a step. Know that there are around 1850 credit unions participating in the CO-OP shared branching network.  They have around 6000 branches collectively and that is bigger than any branch network in the US.  Feast on that. The credit union shared branch network is the biggest in the country.

Along the way in this conversation we also explored the credit union shared ATM network – another industry advantage that often is inadequately explained to members and prospective members. And we discuss new trends in digital banking and the branch of the future.

Listen up here.

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

Go big or go home.  That’s the bold message from investment banker Peter Duffy of Piper Sandler and for some years he has been in the thick of credit union mergers.

And Duffy is here to say there’s a new trend.  Used to be, most credit union mergers involved a shoebox credit union getting devoured by a bigger one.  You know why that played out. Usually the small credit union had reached a point where its viability was questionable and the regulator, with winks and nods and maybe a shove, engineered a shotgun marriage with a bigger, healthier institution.

According to Duffy, that is changing and now very big credit unions – some with well over $1 billion in assets and healthy balance sheets – are talking “mergers of equals” with like sized institutions.

Why? It just is getting tough to compete with the money center banks who control an ever expanding piece of the financial pie. Add in the competition of fintechs and, suddenly, institutions with assets under, pick a number, $500 million? $1 billion? $5 billion? Are finding it ever tougher to thrive.

And $5 billion, by the way, often is the number that survival oriented big credit unions have their eye on, says Duffy.

Duffy also posits that what he calls Covid fatigue is wearing out many credit union senior managers and lots of board members. A merger to them may appear to be a great exit strategy.

 Along the way in this podcast Duffy throws out lots of Piper Sandler research findings on what it takes to succeed today.  Take notes. This is excellent stuff.

You won’t sleep well after listening to this – but you just may hear your path to institutional survival.

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

Do it for me. That is exactly what more and more credit union members expect from their financial institution. Especially around payments.

Amazon’s Alexa is smart enough to remind us that, based on our order history, it’s now time to re-order cat food.  Why can’t my credit union remind me to pay my car lease, my mortgage, and the Discover bill that is always due on the 15th?

The insight of Payrailz, a Connecticut based fintech, is that the credit union in fact probably has all the tools it needs to do those reminders – even to initiate the payments for members that choose.

Enter the world of AI powered payments.

Mickey Goldwasser, chief of staff at Payrailz, said we are entering into an era of “Do It For me” – and AI makes that a very possible reality.

A member forgot to pay his/her American Express card bill – but won’t that member welcome a nudge? “Usually you have paid American Express by now?  Is that bill due?”

Smart payment rails can also be called upon to actually make the payment.

The beauty is that drudgery is being taken off the member’s plate – and smart machines are running with it.

13 credit unions are in CU Railz, a CUSO that owns Payrailz. A few other credit unions, and a smattering of banks, also have adopted the technology. But, says Goldwasser, 90% of Payrailz business is with credit unions.

Size varies from small to the $12 billion Sun Coast.

Listen up. The time is now for smarter payments tools that anticipate what members want to pay and help them do it.

Do it for me is now a reality in payments.

This, clearly, is the next evolution in payments.

Hear the Payrailz podcast here.  

Dig deeper into AI and credit unions in earlier CU2.0 Podcasts – with Posh Development and Coalesce, both DCU Innovation Lab companies (our podcast with the Innovation Lab director Vasilios Roussos is here).

A recent podcast with Fahd, the CEO of Abaka, tells more about AI and how credit unions can sell smarter. 

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