THRIVE Strategic Services: The average credit union has 60-100 data systems collecting abundant data, but 92% of credit unions are not effectively leveraging their available data. To help credit unions leverage their data, THRIVE Strategic Services has created and launched a CPE-accredited data training course for credit unions of all sizes that can help them accelerate their use of data and get more out of it. left to help the members. Key deliverables include enterprise data vision, member-centric data use cases, understanding and defining data maturity, data governance essentials, creative data consumption by enterprise talent, workplace adoption, and building data roadmaps. Led by Founder Anne Legg, THRIVE’s mission is to educate at least 25% of the industry over the next five years. Since its launch in 2021, the seven-class series has trained 200 students who have created 97 data use cases, produced 80 data roadmaps, and developed 125 data vision statements.
4Front Credit Union: Americans have to deal with complicated 401(k) plans, increasingly sophisticated investments, and new credit products, all of which put the average consumer at financial risk. A lack of personal finance knowledge costs about $352 billion each year in the United States. 4Front Credit Union ($963 million in assets; 95,995 members) saw an opportunity to help its members build financial literacy to achieve long-term financial well-being by encouraging them to adopt savings habits practices and helping them achieve their personal financial goals. The credit union, led by Senior Vice President of Technology Zach Eychaner, has partnered with Plinqit to provide a savings platform that pays members to learn about finances by watching a video or reading an article from the Plinqit library, then answering a short questionnaire. Upon completion, members earn a reward. Since partnering with Plinqit, 4Front members have saved $818,997 and taken over 775 financial education courses. Over 1,200 members are actively using Plinqit’s tools.
Commonwealth Credit Union: As more members engage with the Commonwealth Credit Union ($1.98 billion in assets; 115,645 members) through digital channels, it was decided it was imperative to to invest in providing a better experience for online and mobile banking users. Building on feedback it received about the cumbersome experience of its mobile and online banking systems, the credit union launched its new digital banking experience last year, revamping its look and functionality and aligning the online and mobile banking experiences of its members using an omnichannel approach. The upgrade provides enhanced security measures to protect members’ personal information and allows members to customize their experience, including setting alerts, adding notes and uploading images. At the start of the project, the Commonwealth Credit Union had 78,826 online banking users and 53,809 mobile banking users. By day one of the upgrade, with the help of a thorough communication plan, 41% of users had converted to the new digital banking platform, exceeding its target of 164%.
Open Lending: Open Lending has developed a risk-based automatic loan activation platform that uses proprietary data from a quasi-preferred loan database and advanced business analytics to help lenders approve and fund a wider range of loans and serve more members while earning higher returns and mitigating risk. The Lender Protection Program allows credit unions to reserve between 20% and 30% more auto loans from their existing application stream at higher yields than prime lending programs. Loans are individually insured and the insurance is designed to absorb more than 85% of expected deficit balances. Using this risk transfer mechanism, actual loan losses reflect the lender’s prime auto loan portfolio and all program costs are reflected in the recommended contractual interest rate. Since launching Lenders Protection, Open Lending has raised over $12 billion in insured loans, including approximately 600,000 certified loans from over 400 US financial institutions.
NorthPark Community Credit Union: Over the past few years, NorthPark Community Credit Union ($45.6 million in assets; 4,893 members) has pursued a plan to go completely virtual, a strategy it says pushes back the trend of merging small credit unions by reducing costs. and enabling organizations to enter new markets without adding physical locations. The plan includes closing all physical branches in favor of electronic services and ATMs with full remote work for his team. In addition, NorthPark expects its virtual branch strategy to unlock funding opportunities for targeted low-income populations in its 19-county estate by eliminating standard branch hours that can be inconvenient, hassle-free. transport and the anxiety associated with entering a branch. NorthPark’s initiative has reduced operating expenses by $150,000 over two years, provided a profit-sharing dividend to each member, reduced waste, expanded its talent pool, and enabled career advancement for members of the frontline team. To help other credit unions go virtual, NorthPark is developing its “Virtual Branching In a Box” website.
MAX Credit Union: The MAX Credit Union team ($2 billion in assets; 118,576 members) is always looking for ways to foster and enhance the member relationships that have been built over the years . Using Q2 Studio Innovation, the credit union created referral and reward programs in-house, which saved a lot of time and money. By eliminating outside vendors, MAX saved over $100,000 on the referral program and was able to deliver in months rather than years. With the rewards program, initial supplier projections were around $50,000 with a lead time of six to eight months. MAX’s IT department handled this project internally, saving up to $50,000 and delivering in days, not months. With the new programs, MAX’s goal is to reward members while creating and maintaining awareness, so it’s a priority when members use their debit card, apply for a loan, or refer a friend.
Ent Credit Union: With a massive shift to digital solutions during the pandemic and the increasing speed of innovation driven by both big tech companies and smaller start-ups, Ent Credit Union ($9.1 billion in active; 473,470 members) knew it had to be as responsive as possible. Rather than relying on third-party vendors and multiple member feedback cycles, credit union management invested in an internal model. First, it upgraded its online banking system to one with a more agile microservices architecture; and second, it invested in the human capital needed to manage digital products with consistent ownership and innovation. In total, Ent has approximately 65 people now focused on its digital member journey, including professional product managers, a new VP of digital product, a new experience design department, and a UI/UX designer. dedicated in each team. Ent has also recruited over 1,500 ambassador members to test new solutions and designs and provide feedback.
Enrich: Enrich’s technology-driven financial wellness product has changed the marketing strategy of credit union partners, empowering them to lead with interactive digital education while driving member acquisition and engagement and by demonstrating significant changes in financial behavior. Its interactive digital financial education platform starts with a financial health check that assesses key elements of the user’s financial story, including financial challenges and goals, then uses an artificial intelligence-based algorithm to instantly personalize the user experience based on the responses. As the user continues to interact with the platform, the personalization deepens to ensure an ever new and engaging experience. The platform integrates with credit union member portals and currently works with 250-300 different credit unions. Credit unions can white label the program using over 100 different configuration options and add their own custom content. Enrich’s data shows that using the platform is correlated with an average 23% decrease in financial stress over a 12-month period.
We are pleased to continue our presentation of the LUMINAIRES Class of 2022 finalists, who are being recognized this year for the many dynamic and inclusive ways in which they are moving the credit union industry forward.
Finalists were selected by our editorial team from several hundred outstanding entries in four award categories: Diversity, Equity & Inclusion, Executive Leadership, Technology Innovation and Product Innovation.
This slideshow highlights the eight finalists in our Tech Innovation: Organizations category. It is a group of organizations focused on developing and executing technological advancements to benefit the credit union system.
The LUMINAIRES Class of 2022 finalists were recently reviewed by a diverse panel of judges from across the credit union industry, and a selected group of winners will be announced on stage at the first awards dinner and gala. of the program – which will take place on November 9 at the Four Seasons Hotel in Washington, D.C.