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Financial Institution Archives - Page 3 of 6 - POPi/o

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Easy Social Distancing Ideas When Branch Lobbies Re-open

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Digital service providers are reporting explosive increases in user data over the past two months as shelter-in-place orders have forced consumers to go digital. Attitudes toward digital have seemingly changed overnight – what was once a user experience enhancement is now literally an essential service channel.

The term disruption had run its course before COVID-19, but this largely unexpected even is just that, a major disruption for nearly every sector. Now that we’re about three months into this global pandemic, financial institutions are no longer wondering if, but how much COVID-19 will change the way they deliver products and services.

The answer could mean shuttering even more branches and once again rethinking branch strategy. Consider this: increased digital adoption won’t be the only drain on branch traffic. Experts say the stay-at-home environment could be a way of life for a long time. Certain groups of people, including retirees, those with compromised immune systems, and those fearful of infectious disease may forever avoid in-person interactions.

There’s more. Experts say social distancing could be required by authorities well beyond 2020.

As long as someone in the world has COVID-19 and there is no vaccine or herd immunity, breakouts can and will keep recurring without stringent controls, wrote MIT Technology Review Editor-in-Chief Gideon Lichfield. Even if social distancing measures are only put into place every time ICU admissions begin to spike, research models predict that strategy would still require a schedule of roughly two months under quarantine and one-off.

Harvard disease experts agree, saying that some form of intermittent social distancing may need to be in place until 2022 and possibly longer.

Social distancing is beginning to be referred to as physical distancing, which is a more accurate description. Despite being physically separated by quarantine, people have still found ways to be social. Neighbors have entertained each other around the world with balcony musical performances. Friends and family have honored graduates and birthdays with car parades. We’ve turned video conferencing into virtual happy hours that even have their own signature drink, the Quarantini.

Those under COVID-19 quarantine have shown that while they are willing to adhere to physical distancing, they still require face-to-face contact, even if it’s via video. To maintain brand loyalty, financial institutions will need to find ways to provide that level of human service. Many of them will have to find ways to make branching work despite the challenges, which will likely include the need to keep everyone at least six feet away from each other, limiting people in the branch at one time and increased personal hygiene and cleaning standards.

The solution lies in using technology in new, creative ways to provide meaningful social interaction, just as parents have created virtual graduation and birthday parties for their children. We’ve seen credit unions and banks integrate video banking like POPi/o into their branches in creative ways that provide a superior user experience while also supporting the institution’s bottom line.

For example, one financial institution completely centralized its lending operations, even going as far as to restructure branch employee incentives to guarantee their support of video banking in lending. To ensure privacy, an office in each branch was reserved exclusively for video banking sessions. This institution already had a pandemic-friendly branch strategy that minimizes employee exposure and maintains excellent physical distancing between two groups of customers: those completing transactions and borrowers.

Another video banking institution has closed its branches to walk-up traffic, performing only select services for customers by appointment only. However, it had already installed personal video teller machines outside of the lobby, providing an on-demand way to accept check and cash deposits, make cash withdrawals, and, if needed, connect to a live video teller who can perform more robust transactions and problem-solving. Time will tell if this strategy will work long term, but because video tellers had already been integrated into the branch strategy – even if only intended to extend service hours, not perform essential services during a national emergency – this financial institution didn’t skip a beat providing full branch service while being a good corporate citizen.

Are you frustrated with what seems like no-win options to adjust your branching strategy to physical distancing and other measures that will keep your employees and customers safe? Let POPi/o help you brainstorm ways your financial institution can use video banking to quickly and effectively meet the needs of your customers and your bottom line.

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How COVID-19 Could Change Banking Forever

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Throughout history, major events have created permanent, unexpected shifts in human behavior. People have been forced into lockdown to stop the spread of disease before; the long-term psychological effects of those quarantines have been studied, so we have some idea of what to expect. However, the length and global reach of this isolation are unmatched, and there is no doubt this traumatic event will produce permanent changes. 

Here are three impacts of COVID-19 and their respective long-term outcome for community banks and credit unions.

Fear of public gatherings

After this pandemic has long passed, a generational shift will produce new preferences when it comes to public gatherings and face-to-face interactions.  Following previous outbreaks in Asia, face masks became a normal and expected day-to-day accessory. With the fear of contagions and mandatory stay-at-home orders, people are becoming more comfortable replacing physical interactions with digital visits.  The long-term shift will come as many start preferring it as a way to manage lingering fears of contracting a fatal disease. Perhaps you’ve already seen this fear play out on social media in emotional debates about whether or not a COVID-19 vaccine is required before reinstating sporting events, concerts, and other large public gatherings. In particular, subsets of the general population who are concerned about germs will be more sensitive to the risks involved. 

The effect on FIs: Traffic at branches has been decreasing for years; however, fear combined with increased digital channel adoption will send this trend into overdrive. After all, it’s mostly older consumers who still use branches, and this age group will be understandably shaken by losing friends to COVID-19. However, older generations also value face-to-face service and prefer doing business with specific employees. Not only will video banking fill that service gap for this market, but adoption will also be easier than ever because so many grandparents have been using video to communicate with family during the quarantine. 

We’ve said for years that consumers want to choose how they engage with their FI. If they can do it all digitally, more power to them. But in tumultuous times like now, people need more help from real people. Maybe they can’t pay their existing monthly loan payment due to reduced hours. Do they refinance the existing loan? Roll it into a HELOC? Find another solution? To solve this problem, they need a financial counselor, and that’s something credit unions and community banks can and should offer. Video banking supports that consultative relationship while still protecting the consumer and employees.

Economic shifts

I’m confident that the stock market and U.S. economy will survive and continue to lead the world; however, segments of the economy already affected by quarantine orders may not completely recover. Small restaurants, travel industries, commercial real estate, and auto industries are all likely to face a protracted slowdown. 

The effect on FIs: Financial institutions that serve these industries will suffer resultant impacts on their businesses as well.  Although markets shift and change every day, this change is so drastic and unexpected, we may see some financial institutions fail or merge for survival similar to the mortgage meltdown in the late 2000s.  Those looking to thrive must find ways to economically provide their services. Again, we see video banking as a possible solution for cost-conscious service delivery. 

Work from home

Now that a majority of U.S. workers are gaining remote work experience, a return to the office will be a tough sell. Let’s start with the dress code: sales figures from Walmart that report the chain selling out of tops but not pants. Americans have happily embraced new workplace standards that only require professionalism from the waist up and allow for interruptions from children during meetings.

The effect on FIs: Like everyone else in America, financial services employees will want to continue to work from home. Working from home and the schedule flexibility it will bring could create the need for, and ability to offer, longer service hours. While that might be possible from a technology standpoint, security will be an issue for FIs, because video conferencing apps like Zoom they weren’t built to handle secure financial information and workflows. We’ve helped our customers use the POPi/o platform to not only serve customers securely but also support employees who must now work from home and handle sensitive consumer information. 

Change isn’t easy for anyone.  Big external events (like a global pandemic) create new circumstances and could be the stimulus for permanent change.  Good luck to you and your financial institution as you navigate the new normal post-Covid-19.

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Video Banking Protects Employees and Consumers

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POPi/o Covid-19 Response

As I write this, the coronavirus death toll in the U.S. has risen to 6,574, and that number is sure to rise by the time you are reading this. Every state in the union has announced positive cases of Covid-19 and most have declared mandatory shelter in place orders. The financial markets have continued to tumble throughout the month of March and the Federal Reserve Board announced its first emergency rate cut since the 2008 financial crisis.

The fatality rate for Covid-19 isn’t as high as other viruses, but what seems to make Covid-19 frightening is how contagious it seems to be. Evidence that Covid-19 is more contagious than estimated lies in the numbers: the virus has reached 210 countries on six continents in a matter of weeks, and many of the infected report no contact with anyone known to be exposed to the virus.

At a time like this, how does a Financial Institution protect their staff and consumers? Most FI’s are choosing to close branches. During the month of March, I talked to hundreds of FI’s. In those meetings, I learned that most branch lobbies remained open on March 16th, but by the end of that week and early into the following week, the majority of branch lobbies had closed or restricted their access.

With this restricted access to physical locations, how can FI’s maintain business continuity? Amid the fear, there is some positive news: today’s technology allows financial institutions to provide essential services much easier than during previous pandemics. During the SARS outbreak of 2002, when most financial institutions last updated their business continuity plans, customers utilized call centers, ATMs and online banking services. These days, technology has enabled several additional tools such as mobile banking, mobile check deposit, video teller machines (ITMs), and video banking tools.

This transition to new technologies is happening already. Within 10 days of Covid-19 hitting the U.S. shores, our video banking company, POPi/o, saw video call volume jump 50%. We also saw a rapid shift from our in-branch video call volume to mobile and web video calls. Other financial services providers report digital channel traffic over the last few months to be equal to traffic during all of 2019. We expect traffic to continue growing.

During this pandemic, consumers need access to your FI resources more now than ever. Whether they need to discuss loan modifications or to apply for the government’s payroll protection program, consumer needs are just as high as their anxieties. Video Banking tools can assist financial institutions when they are forced to close branches, or when consumers are unable to leave their homes. FI’s can now deliver teller services from Interactive Teller Machines and with POPi/o Video Banking offer in-depth banking consultations and account services. Today’s Video banking is far more robust than basic communication via phone or video conferencing and allows for new accounts, loan origination, funding new accounts, exchanging documents, signing applications, and any number of account servicing needs.

Before today’s recent events, many of our credit union and bank clients have found POPi/o video banking to be useful in assisting customers who are homebound due to age, illness or disability. Others used it to assist professionals in medical, military or other circumstances that didn’t allow for quick trips to a branch. Now we see personal branch services being delivered to consumers in self-isolation, oftentimes with the staff member safely working from home.

If your credit union or bank is reviewing their business continuity plan and looking for additional ways to provide essential services using digital channels, request a demonstration or give us a call. We’d be glad to discuss how video banking can become an integral part of pandemic mitigation that protects your staff and consumers. Until then, stay safe, and healthy.

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Omnichannel ROI? Look For Insights Not Common Metrics

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It’s been nearly a decade since omnichannel became the go-to digital transformation buzzword, and organizations have worked hard to upgrade their consumer experience accordingly. According to the Aberdeen Group, between 2012 and 2017, the average company doubled the number of channels it uses to interact with consumers.

Omnichannel is a simple concept: increase convenience by offering a choice of access channels. If those new channels are digital, and they usually are, the consumer experience will improve. In turn, efficiencies will increase, costs will shrink and revenue will grow.

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Oh, if only omnichannel were that simple. For most organizations, the reality of offering additional access channels has been quite different.

For example, your financial institution probably invested significant resources in your mobile banking app, and even though you’ve met your adoption and rating goals, costs keep going up, not down. Or maybe you’ve added texting, online chat or social media messaging, but in some cases, they have created friction instead of streamlining your workflow by not delivering a seamless experience that meets the needs of the agent and the consumer.

If your bank or credit union is missing the return on investment that digital service channels were supposed to bring, you’re not alone. Many financial institutions struggle to effectively satisfy the needs of today’s demanding consumers while reducing costs and driving revenue.

Where’s the digital disconnect?

The problem lies in financial institutions using common metrics to measure omnichannel ROI, instead of tracking metrics that measure consumer engagement. Moneythor, a digital banking firm based in Singapore, uncovered this common error while researching how financial institutions track ROI earlier this year.

After analyzing annual reports and investor reports of 24 banks around the world, the fintech was able to divide digital metrics into two categories: common metrics and insightful metrics. Common metrics only report usage of digital channels. Insightful metrics, on the other hand, report engagement measures that allow financial institutions to measure how each digital channel contributes to financial success.

Common metrics like adoption rates are important, but the truth is they don’t add much value to your bottom line. To accurately measure ROI, you must instead measure digital engagement and digital users’ activities on each platform. For example, don’t base your success on how many times your digital banking app has been downloaded or how many logins you get each month. Instead, track average session time, number of monthly digital sessions per user, click-through rates, response to digital marketing campaigns, satisfaction ratings after digital channel use and how each digital channel generates revenue-producing activities like loan applications or new accounts compared to transactions.

Using these advanced metrics, financial institutions can then determine how and even why their consumers use each digital channel. Digitizing and automating operational processes won’t automatically deliver ROI. Financial institutions must also develop ways to measure, track and report the actual value generated by each digital channel. This holistic view will allow them to focus on the functions that deliver the most value, and prioritize optimization that reduces friction, improves the consumer experience and drives even more revenue.

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Quantitative vs. Qualitative: How Technological Innovation has Changed

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Bigger, better, faster, more. These uniquely American values, along with healthy dose of creativity, have been the driving force behind some of the world’s best innovations. Electric light bulbs, airplanes, skyscrapers, microwaves, credit cards, the internet, Google, wi-fi and even the Fitbit are all technological breakthroughs made in America that have fed our appetite for more.

There’s no limit to how much more we can achieve; and yet, it feels like we’ve reached a tipping point in our culture as it applies to innovation. The primary driver of new technology isn’t just about delivering more in a quantitative sense. We’re seeking a better quality of life, too.

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Microsoft CEO Bill Gates made a case for that shift earlier this year in MIT Technology Review, when he guest curated a list of 10 breakthrough technologies. While it’s true that technology still seeks to deliver more, Gates’ observed that his list included an equal number of innovations that primarily serve to improve quality of life.

He used cultured meat, one of the innovations he selected, as an example. There is more than enough livestock to feed the world, even as the human population grows and the demand for meat increases. Instead, cultured meat is about making the world a better place by reducing the rate of deforestation, reducing methane that contributes to climate change, and allowing those who oppose killing animals to still enjoy the taste of a hamburger.

The demand for innovation in financial services is experiencing this same shift. Today’s fintech buzzwords – friction, engagement, functionality, AI – all support consumer demand for qualitative improvements. We’re also focusing on technology that can improve our employees’ quality of life, from tools that help people work remotely to machine-based learning that eliminates mind-numbing repetitive task work.

Gates stressed that technology’s shift from quantity to quality isn’t going to happen overnight. In fact, he said we’ve only now reached a midpoint where we are considering both ideas at once.

However, Gates predicted that 20 years from now, the brilliant minds of the world will focus less on how to achieve more, and instead consider metaphysical questions such as how they can find ways to help people can live happier, more fulfilling lives and create more meaningful connections with each other.

How does your financial institution’s long-term technology strategy align with this notion? Are you focused primarily on implementing new technology that will grow your consumer base, generate more revenue and increase your outstanding loan balances? Or, are you equally seeking solutions that will optimize technology to make life easier and more rewarding for your consumers and staff?

The Financial Brand recently released a new study, Digital Banking Consumer Engagement, that details how community financial institutions are falling further behind big banks when it comes to using technology to increase engagement. The big banks aren’t using expensive, cutting edge strategies – the report tracked readily available technologies like mobile new account opening, online applications that take less than 5 minutes to complete and digital funding options.

Despite demand from consumers and ample supply from fintechs, the adoption rates for these tools was low. Only one-third of financial institutions that participated in the study allow consumers to open a new checking account using a mobile app. A staggering 39% require an in-person trip to a branch to complete that process. Only 18% say their online account opening process takes less than five minutes. Nearly half don’t allow consumers to stop and save the account opening process in one channel and continue using another channel.

This isn’t just a strategy to increase market share among millennials because they are lazy or softer than previous generations. This is a long-term, groundbreaking change in our approach to technology according to Bill Gates, the second richest man in the world. And the richest man in the world – Amazon CEO Jeff Bezos – is undoubtedly on board with the idea of using technology to improve our quality of life. Nearly every successful Amazon innovation, from free shipping to Alexa, has focused on finding ways to make our modern life easier.

Like the saying goes, it’s not the number of years in your life that matters, it’s the life in your years. What was true in simpler times is even more important in our modern, digital world. And for community financial institutions, technology that improves consumers’ quality of life could very well be the key to their survival.

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Four New Service Standards to Keep Your Eye On in 2020

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We all know what the Amazon effect is, right? That’s when your consumers expect you to offer digital service and delivery on par with the $178B retail and tech giant.

That’s why it’s crucial you make the most of every single penny allotted to your 2020 tech budget. It’s not enough to compare your service to the other community FI across town. You need to measure up to the general service standard consumers expect across all industries.

According to consumer service experts, here are four service standards American consumers will expect from all retail firms in 2020.

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Consumer-centric attitude

We’ve all heard the statistics about how it costs five times more to acquire a new consumer than it does to keep an existing one. So if consumers expect Amazonian digital service and experts call for a possible recession in 2020, you’d better believe successful firms will put more emphasis on retaining consumers next year than acquiring new ones.

Those digital channels that make product and service delivery so efficient can be your best friend and worst enemy when it comes to word-of-mouth referrals. How often do you see posts on social media from friends who are delighted with a product or company? Probably just as often as you see posts from those who are furious with poor service and exacting revenge.

Word of mouth has expanded exponentially from yesterday’s one-on-one friendly chats. Your consumers can share their service experience with hundreds or thousands of people (or millions, if it goes viral) just by pressing enter. It only takes one bad experience to wipe out the gains from an entire marketing campaign, which is a sobering thought during budget season.

You absolutely must prioritize providing your existing consumers with the very best service you can provide, whether it’s face-to-face or through digital channels.

Personalized service

If you’re in marketing, you’ve probably already heard of “a market of one.” Your consumers expect you to know which products and services they’re interested in and which ones they aren’t. How in the world can they expect such a thing? Because these days, most people – especially young adults – have a general understanding of big data and how it can be used to personalize the consumer experience. They know that as their financial institution, you have a lot of data at your disposal.

The days of “do you want fries with that” sales pitches are over. Studies have shown that young adults aren’t weirded out seeing auto loan ads pop up in their social media newsfeeds after researching new cars online. In fact, they expect it. They aren’t going to waste their time searching for financial services when your competitors make it so easy they don’t have to.

And even if your credit union or community bank provides a better deal, your consumers will never know about it.

Life moves quickly these days, and consumers don’t have much tolerance for organizations that waste their time. A 2020 budget priority should be providing personalized service that leverages consumer data across multiple touch points that include your website, call center, branches and mobile app.

Secure concierge

Speaking of not wasting consumers’ time, another service expectation in 2020 will be the ability to perform tasks on behalf of consumers. Don’t tell a consumer to go do something when your call center rep or even your systems could do it for them. For example, don’t ask a borrower for a copy of their paystub to verify income if you have been receiving their direct deposit for two years.

Consumers don’t care that your core system lacks functionality or your service reps aren’t authorized to perform the task they need. They just want you to help them be more efficient with their time, and they’ll go somewhere else if you can’t deliver.

Here’s an important part of concierge service that could give your community financial institution an edge over fintechs and big banks: yes, consumers want you to perform tasks for them, but not at the expense of data security. Make sure your systems and workflows are secure so you’re not the subject of the next data breach story in the news.

One and done

Centralizing your operations is a big trend these days, but if you make your consumers wander through the maze of your organization chart to find the right person to solve their problem, you’ll lose them. In fact, consumers today expect firms to resolve questions and issues with just one point of contact and in real time.

That’s one reason why chatbots have been more popular than expected. Spending a few seconds answering some questions that route the caller to the right place is much better than sitting on hold, waiting for help … only to find out they need to be transferred to another department.

While chatbots work well for simple questions and call routing, they don’t replace consumer service with a live person who can provide reassurance and problem solving skills. The key to a successful centralized operations team is both technology and face-to-face consumer service representatives who resolve issues efficiently and effectively.

Service standards are a very important part of your 2020 budget planning, but they aren’t everything. To learn more about the economy, a new operational trend, and how the continued challenge to remain relevant will impact your financial institution, your consumers and your 2020 budget, click here to download our new white paper, “3 trends that will drive your 2020 budget.”

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Is your Financial Institution loved?

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When community financial institutions compare themselves to big banks, they usually talk about great service.

“Our consumers love us,” they say.

But do they? Do they really?

Data has helped FIs more accurately measure performance boosting factors like market sensitivity to rates and fees, look-to-book ratios and digital marketing rate of return. Data has also helped improve the accuracy of net promoter scores and consumer satisfaction. This data might show that your financial institution is performing better than your competition; and yet, you’re still not meeting your organizational goals.

It seems like something is missing. That something is love.

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Back before technology quantified everything, financial institutions relied upon old fashioned human indicators to measure how much their consumers loved them. Things like word-of-mouth referrals and branch traffic may sound quaint today, but they represent one thing that’s missing in our digital, data-driven world: human interaction.

Research says today’s consumer wants 24/7 digital access, automatic loan decisioning, the latest P2P payments service, and of course, the best products and most competitive rates.

But do they? Do they really?

A recent J.D. Power Retail Banking study revealed something very interesting: the thing consumers said they want most from their financial institution is advice. Of those surveyed, an overwhelming 78% said they wanted financial advice, but only 28% said they received it. You might think you’re providing advice on your website when you explain your products and services, or in blog posts that teach financial literacy skills. But that’s not advice. Advice requires a two-way conversation that values listening as much as selling.

How survey participants said they received advice supports this fact. Of those who told J.D. Power they received advice, only 33% who received it via email said it met their needs. Compare that to the 58% who loved the advice they received face-to-face. Now here’s where it gets tricky: nearly 60% said they want to receive that face-to-face advice through their financial institution’s mobile app.

“The key takeaway from this study is that there is a huge opportunity to leverage a combination of in-person and digital interactions to provide advice and guidance that assist customers in their financial journey,” said Paul McAdam, J.D. Power senior director of banking practice.

We believe when a financial institution uses technology to make its consumers feel loved, it’s the best of both worlds. And we think your bottom line will show it.

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Centralizing Lending Delights Consumers and Lenders

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Only 26% of consumers prefer to conduct their financial business in a branch, according to a new study from global management consulting firm McKinsey & Company. That’s down from 38% in 2016.

This change in consumer behavior fueled an all-time record of nearly 2,000 branches closed in 2018, according to S&P Global.

Don’t assume this trend is only being driven by routine transactions. Lending is also experiencing a service shift, moving from loan officers in every branch to a focused, centralized effort. And we’re not just talking about credit card applications. Even mortgage lenders are centralizing their operations.

Last fall, the $123 billion BMO Harris Bank eliminated most of its branch mortgage officer positions and now sends borrowers to a centralized mortgage call center and an online mortgage application platform.

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Bankrate.com Chief Financial Analyst Greg McBride said mortgage loan officers simply aren’t being utilized in branches anymore. However, digital doesn’t necessarily mean an entirely online experience.

“The use of call centers or video conferencing centralizes the taking of applications and provides a human interaction in a more efficient manner than stationing someone in a branch,” he added.

That human interaction is key to a successful centralized lending effort. Loan officers are located in an efficient, single location, but are available to borrowers via phone or video. Consumers usually have the option to call in from home, work or while traveling … and, just in case a consumer visits a branch to apply for a loan, most financial institutions also offer video access from the branch, too.

Video-based lending teams also close the gap when it comes to online lending attrition rates. Community financial institutions have invested significant capital in online self-service account opening and loan application tools, only to be disappointed that 80% or more of applicants abandon the cart. Video Banking provides the engagement needed to identify a borrower who is struggling with the application process to assist them immediately with a click of a button…

Centralized lending also allows financial institutions to select the best employees for the job – those whose skill sets focus on the drive to sell and grow, rather than task-oriented branch responsibilities.

The more lenders can focus on just lending, the more skilled they become. Think about it – it’s difficult to be consistent when you only do something a couple of times a week. Due to low volume, in-branch lenders don’t have an opportunity to complete a variety of loans on a regular basis, which can sometimes lead to costly mistakes. A centralized team with higher volumes improves consistency, makes training easier, and allows for easier goal and improvement tracking.

Not only are loan officers more focused on their jobs, in many cases centralizing lending operations allows them to sit close to their underwriting and processing teams. Not only does this improve efficiency that allows for loan decisioning within 30 minutes or less, but it also provides a culture in which the entire team works together to achieve organizational loan growth goals.

FIs that have centralized their lending operations have the numbers to back up that concept. For example, one credit union on the east coast saw a huge productivity boost after centralizing its lending operations, seeing an average loan volume per employee increase by 80%. Brett Christensen of CU Lending Advice has been touting the benefits of centralized lending for a few years. In one of his recent presentations, he said a credit union in Texas centralized lending and in one month one of their centralized lenders sold 143 GAP policies, 47 extended warranties and funded $3.7M in new loans.

The entire organization is more efficient across the board, too. Centralized lending allows staffing decisions to be based on overall loan volume, not geography. The $730 million Tropical Financial Credit Union in Miramar, Florida, reduced its front-line lending staff by 77%, from 19 employees spread out across their branch network to just 9 centralized and highly productive staff.

POPi/o is a perfect system to build a successful centralized lending strategy because it provides face-to-face video interaction at the borrower’s convenience and it was created to support lending workflows. For example, POPi/o collaboration tools provide the ability for loan officers to educate consumers on their loan choices with screen sharing, slide sharing, and other engaging tech tools. Once a product selection has been made, the consumer can provide their photo ID, proof of income and other necessities, then review and sign the loan application in just one video chat session.

If you are interested in learning more about how POPi/o can help support your centralized lending strategy, please contact us for a POPi/o demo at www.POPio.com.

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Data Shows that Video Banking Generates Positive ROI

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They say you can’t put a price on great service but try convincing your boss of that when you’re pitching a new digital service channel. The bottom line is undeniable: ROI matters.

Video banking delivers ROI, and our users’ 2018 data proves it.

Most people think of video banking as just another way to process routine account transactions, but that’s not true. Last year, the most frequent use of POPi/o Video Banking was lending.

Let that sink in for a moment. More than one-third – 36% to be exact – of customers who contacted their credit union or bank using video banking did so to apply for or fund a loan. And these weren’t just consumer loans, either. Twenty-six percent of our financial institutions utilize video banking as a way to process business loans.

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All that consumer and business loan activity means a direct source of new interest and fee income, and a chance to grow your market share. And as rates continue to rise, your ROI and income will grow along with it.

Okay, so surely the second most common use of video banking was routine transactions, right? Yes, but just barely: 16% of consumers used video banking for account service. However, following right behind at 15% were consumers who opened new accounts.

When you put together the loans and new account activities more than half of all consumers using the video banking channel last year contributed a quantifiable business value to their financial institution. Why is video banking such a great channel for profitable account activity? Because it’s more than just a channel that supports face-to-face conversation. POPi/o Video Banking includes key workflow capabilities that provide a complete service experience. For example, consumers can use video banking to easily upload supporting documents to complete loan applications, like IDs and paystubs. Video banking even supports eSignatures, which means consumers can go from application to funding in just one call.

That level of video interaction delights consumers, and our data shows it. POPi/o Video Banking scored 4.7 stars out of 5 with our financial institutions’ customers, which include more than just millennials and Gen Z. Video banking is also popular with retirees who have limited mobility, customers who speak English as a second language and middle-aged executives who travel for work.

The most popular channel for video banking is mobile – 63% of POPi/o financial institutions have deployed video banking into the mobile channel because it gives them the greatest reach. However, surveys show that most consumers prefer to use more than one channel to access their financial accounts, so our financial institutions also work toward also implementing video banking online and/or in a branch.

Another interesting point revealed in our 2018 user data was that the average video banking call is only a little more than five minutes. That’s a perfect length that allows your representatives and your customers to have a complete, yet efficient, service experience.

If you’d like to learn more about our 2018 user data and how POPi/o Video Banking can produce positive ROI for your credit union or bank, please request a demonstration here.

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Video Conferencing vs. Video Banking

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Can’t we just use Skype?

What’s the difference between video conferencing and video banking? Can’t you just use Skype, FaceTime or Zoom to talk to consumers with less overhead?

If you’re in charge of operations and want to add video banking to your FI’s digital channels, you might get these questions from your boss, executive team or board. There are very distinct differences between video conferencing and video banking, and in order to deliver the experience your consumers expect and maintain your service standards, you definitely need to offer video banking.

However, if you’re not prepared for the question and caught off guard you might struggle to explain the differences, so here’s a quick rundown of the facts.

Woman agent at financial institution with other employees in background

Video Conferencing

Video communication apps allow two people in different locations to communicate face to face. As 3G and 4G technology availability has made connection faster and cheaper, video chat has become very popular across generations. Video conferencing is more than a Skype chat with Grandma. It also provides the ability to share educational information and provide a platform for business negotiations.

That’s one of the big differences between video conferencing and video banking – the former enables communication between businesses and is not addressing the consumer side of collaboration. Additionally, most video conferencing platforms require both parties to set a date and time to communicate, which creates service friction. How many times have you been the only one to show up for a video conference? It’s incredibly frustrating; imagine experiencing that as a consumer.

Video chat apps aren’t secure enough for banking transactions. You’ve probably heard the recent news about the iPhone FaceTime bug that allows users to eavesdrop on others before they even accept the call. The last thing your FI needs is bad publicity suggesting you don’t properly safeguard financial information because you used FaceTime to conduct financial transactions.

Finally, video conferencing’s main purpose is cost savings. It means you don’t have to fly your vendor or your remote team members into the main office for an in-person meeting. Free or low-cost video conferencing services might be cheaper than video banking, but when it comes to digital channels, cost savings isn’t the only factor to consider. Convenience, consumer experience, compliance, and workflow must be included in your due diligence.

Video Banking

Video banking, on the other hand, does more than allow face-to-face digital communication. It recreates an entire branch experience, with tellers, consumer service representatives, loan officers, and financial advisors.

That’s the biggest difference between the two channels – video banking was custom built to meet the needs of banking consumer needs and work with banking workflows. Unlike video conferencing, video banking usually includes the following features:

  • Document collection
  • Document signature
  • Screen sharing
  • Presentations
  • URL sharing
  • Standardized business workflows
  • Branch, web, and mobile deployments

A robust video banking app brings all of your products and services together, which increases your staff efficiency and racks up sales.

Unlike video conferencing, which requires everyone to show up at a specific date and time, video banking can be built into your call center queue. That makes it on demand for consumers, the way retail channels should be.

Video banking also allows you to record the call, produce logs and metrics to track performance and provide data to prove compliance. That’s important: video banking apps are compliant with security regulations that safeguard financial data. WebEx and FaceTime are great services, but they aren’t going to impress your executive team.

Financial regulators are expected to scrutinize technology even more in 2019, according to a recent American Banker article. It reported that because Democrats have regained control of the House, and Republicans only hold a slim majority in the Senate, banking regulation is expected to tighten. Additionally, banking regulators are still under pressure to protect consumers from data breaches. You should expect your examiner to review all of your fintech vendors and digital channels, searching for weak links. Now is not the time to skimp on security!

Finally, consumers value experience more than ever. In fact, surveys keep revealing that younger consumers are willing to pay more for a loan if the lender provides a superior digital experience. Even Grandma, who already knows how to use video chat technology, appreciates the convenience video banking provides – many banks and credit unions have found that video banking adoption rates across all generations have been higher than expected.

The differences between video conferencing and video banking are clear. Start providing better experiences, that will make your financial institution one your consumers love.

Person holding a piece of paper up to sky with cloud cut out

10 Reasons to Look to the Cloud

By | Blog, Video Banking | No Comments

Financial institutions have been wringing their hands for years, wondering when tech giants Amazon and Google will compete against them directly.

The answer might be never.

According to an article published in The Wall Street Journal, Amazon and Google aren’t as interested in banking as they once were. The reason is that as financial institutions increasingly transfer technology to the cloud, Amazon and Google are making more money offering cloud computing services to FIs than they could make competing against them offering banking services to consumers.

Business is booming for Amazon’s AWS, Alphabet’s Google Cloud and Microsoft’s Azure as financial institutions transfer infrastructure, platforms, software and recovery systems from on-site servers to the cloud.

POPi/o Mobile Video Cloud recently changed its name to reflect our Software as a Service structure (Saas). When it comes to leveraging everything the cloud has to offer technology, we’re all in.

Why has POPi/o and the financial services industry finally embraced the cloud? Here are 10 reasons.

  • Disaster recovery
    • We’ve all seen the horrific damage to buildings that Hurricane Michael caused. I’m sure there were plenty of bank and credit union executives who watched nervously as the hurricane veered dangerously close to their service bureau or backup facilities. Don’t let natural disasters – from which you’re protecting your systems – be the weak link that causes disaster recovery failure. Cloud-based disaster recovery services will keep you up and running and allow you to focus on serving victims of natural disasters who need your help.
  • Faster updates
    • The policy of prevention over cure rules today’s digital-first marketplace. The cloud allows you to automatically fix bugs, update customization and make other updates without having to individually upload to each workstation.
  • Quicker deployments
    • The cloud allows you to deploy new technology and services in hours instead of days … or weeks … or even months. All you need is a browser and a bit of training.
  • Serious cost savings
    • This is a biggie. Not only do on-premises hardware and the required software upgrades cost big bucks, but you also have to pay for someone to install and update software, install and manage servers and run backups. With the cloud, those expenses are the responsibility of the vendor; you only pay for what you need.
  • Security
    • For too long, financial institutions were afraid the cloud posed a security threat. Yet research has consistently shown that human error is a greater risk. The cloud doesn’t require in-house physical access security and deployed security protocols. Encryption can be deployed across a wider network quickly, and cloud servers are located at secure locations that are rigorously tested and have multi-factor security.
  • Ongoing education
    • Cloud service providers take the guessing out of getting a new solution to work for you. Rather than relying on in-house expertise, which will require you to pay for educational courses and conference to keep current, your vendor will be your expert.
  • Flexible scalability
    • The cloud is scalable as you grow. If you need more licenses, you can get more licenses. If you need to take some away, go right ahead. As your business grows or slows, the cloud will adapt with you.
  • Mobility
    • Cloud-based services are internet based, so you can access your systems from wherever you or your remotely-based staff have an internet connection.
  • Competitive
    • The cloud allows you to disrupt your market with enterprise-class technology and speed while staying lean and nimble.
  • Environmentally friendly
    • Not only will you reduce the space required in branches and your headquarters to store and access servers, but cloud protocol is also greener than onsite technology because you only use as much as you need.