Why not take the necessary steps to offering a quality program?

first_imgOver the course of the past 10 years, there have been a half dozen regulations or proposed guidance on overdraft solutions initiated by regulators to build a structure for such programs. Each of these have defined what financial institutions could and could not do within the process of providing a solution for consumers who did not have the funds available to cover a purchase or cash withdrawal at the time the transaction posted to their account. Consumer Financial Protection Bureau takes the leadIn 2011, the Consumer Financial Protection Bureau (CFPB) began collecting data relating to overdrafts from nine of the nation’s largest banks under its supervision. After analyzing the big bank data, the CFPB published two reports – CFPB Study of Overdraft Programs in June, 2013 and Data Point: Checking Account Overdrafts in July, 2014. Neither of which resulted in any overdraft ruling.In his presentation of the 2014 Report, CFPB Director Richard Cordray stated, “I want to take pains to note that nothing in this report implies that banks and credit unions should be precluded from offering overdraft coverage. But we need to determine whether current overdraft practices are causing the kind of consumer harm that the federal consumer protection laws are designed to prevent.”Core processor information requestedThe most recent request from the CFPB was for anonymized data (from core processors FIS, Fiserv and Jack Henry) in order to “capture a generic, anonymous snapshot of deposit accounts and programs, the way overdrafts are processed and identified, how their duration is measured and how fees are assessed at the system level before any discretionary intervention.”As a result of its extensive information gathering, on May 22 of this year, the CFPB updated its Rulemaking Agenda on overdraft rules. It stated, “The CFPB is also considering whether rules governing overdraft and related services are warranted, and, if so, what types of rules would be appropriate. A possible rulemaking might include disclosures or address specific acts or practices.”As a proponent of fully-disclosed, compliant overdraft services, JMFA believes that by gathering additional information, regulators will be more knowledgeable on the issues as opposed to relying only on the data they gathered from the nine original banks. As a result, they will have the information they need to make a good rule.What’s a credit union to do?In the meantime, credit unions continue to need fully compliant revenue sources in order to provide their members with the services they want and need. And many consumers continue to need overdraft services to help them maintain their finances.As the regulatory focus on consumer protection continues, credit unions must consistently inform their members of the costs of overdrafts, eligibility and the amount of fees charged per period and per year. A fully disclosed overdraft program – one that clearly defines the rules by which an account holder may access an overdraft service – gives consumers a reliable tool for maintaining control of their money. It also helps them to avoid less attractive choices for meeting their liquidity needs, such as resorting to high interest rate credit cards or relying on pay day loans.The all-new JMFA OVERDRAFT PRIVILEGE® program provides a solution for both situations. Especially since many existing overdraft programs are outdated and obsolete due to changing regulations. JMFA OVERDRAFT PRIVILEGE® recovers lost revenue, offers a compliant program and value-added service for members. With all-new analytics, strategies, compliant communication materials and reporting and tracking, this program provides the tools to help credit unions restore the revenue and confidence in their overdraft service. Why not take the necessary steps to offering a quality program? 12SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Cheryl Lawson Cheryl has more than 30 years of experience in financial operations, consulting, communications, training and project management. She joined JMFA in 2001 and currently serves as the compliance liaison for … Web: www.jmfa.com Detailslast_img read more

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Achieve more by helping less…

first_img 5SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr Folks know that I write this blog, so it isn’t uncommon to receive a nice note from someone with a link to an interesting article.This might interest you, they’ll say.A while ago, five people sent me a link to this piece by Dan Rockwell, also known as “The Leadership Freak.”That tends to get your attention.  continue reading »last_img

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Does your mobile app need a facelift?

first_img 6SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Steve Maloney Steve Maloney is president/CEO of Sync1 Systems, has more than 20 years of experience in the Information Technology field in addressing issues specific to the financial services industry.  Prior … Web: https://www.sync1systems.com/solutions Details Make Your Mobile Banking App Convenient . . . And, Customers Will Spread the WordWhen you set up your lending suite of services, if you’re finding that there are features you’re missing, consider upgrading your loan origination software. Loan origination system software like Sync 1 provides credit unions with smartphone integration to increase membership and lending (auto loans). Members can access the best rates in real-time and make informed loan decisions. Here’s how they helped Neighbors Federal Credit Union in Baton Rouge.Ultimately, as consumers are accustomed to shopping instantly and conveniently from their smartphones, they want to bank the same way. Hence, your mobile app shouldn’t lag behind. Optimize your app with clean images, big CTA buttons, loan calculators and account features. With digital mobile app solutions that include automation, AI, and other tech advances, banking is becoming not just smarter but more convenient. As Logix’s CIO Eduard Chuang pointed out, “We truly aim to provide the best possible banking experience that our members can have.” And, when members are happy, they’ll access more features confidently and will share their experiences with others. And, that’s a win-win for everyone. Well, Domo arigato Mr. Roboto! Picture this. You’re standing in what looks like an endless line at your credit union during your lunch break. It’s dusty and dark. The posters are outdated. Chicago’s “If You Leave Me Now” is playing in the background. You can see that only one teller is working and she’s in no hurry. It’s been almost 45-minutes and you’ve barely moved. You step out of line to fill out your deposit slip with the pen chained to the desk. Then, as you get back in line, you hear, “Next”, but you head for the exit instead. As you’re walking out, you hear the faint sound of Chicago playing in the distance… “Baby, please don’t go. You’ll take away the biggest part of me”. But, you know it’s time.A problem some credit unions have is outdated services and mobile apps that are lacking key features and are just “blah”. They don’t realize small, simple changes can bring their services up-to-date and dramatically increase ROI. So, let’s take a look.Logix – Smarter Banking: It’s Convenient Banking that’s Connecting with MembersIf you haven’t heard about Logix Federal Credit Union, founded in 1937, they’re located in California and transforming the digital member experience. From engaging online and brick-and-mortar customers to making banking convenient, friendly and positive experiences, here are a few takeaways if you’re interested in digital transformation for your mobile apps.Background InformationWith 400+ positive Yelp reviews, Logix is ranked 4.5 stars. Customers LOVE them and are VERY receptive to their brand.A few key points about Logix:As of March 20, 2020, Logix FCU had $6.29 billion in assets, $1.76 billion in loans and a 15.98 net worth ratioIncreased it’s member base by 89% and Forbes Magazine named them Number One Credit Union in CaliforniaThe credit union has just over 207,000 members, 740 full-time staff and 4 part-time staff.Logix is open online 24-hours and accessible from smartphones, tablets and computers.What distinguishes Logix from other credit unions are the new technologies they implemented to reach younger audiences (millennials, online members). The Logix app includes a clean, easy-to-navigate, user-friendly interface and it integrates across mobile. Logix has a strong presence online and on social media.So, what is it that Logix is doing that you can benefit from? Let’s take a look.Data Analytics, Marketing and Promotions“We already have a really great member experience, especially in our branches, and so we’re driven by wanting to make our members feel welcomed, significant, and engaged. What we’re trying to do is take that feeling and replicate it across other channels: on our website, within online banking, and throughout our mobile app.” Anna Fonseca, CEO, LogixData Analytics To stay on top of digital banking changes, Logix implemented a new business intelligence and data analytics department. This department is crucial to gathering key insights and useful data on members and staff. The data is shared with artificial intelligence (AI) and machine learning products that can provide special reporting on specific member behaviors. Hence, all that new technology can help Logix harness data they need to improve user experiences.  But, it doesn’t stop there.Marketing and PromotionsLogix is personable and convenient. Logix uses a tiny robot named Robix. He’s displayed on various landing pages and might be driving a car to promote auto loans or holding up a heart around Valentine’s Day. Hence, ads make members smile while highlighting added savings and marketing is attractive. Logix clearly identifies with members.Promotions, marketing and other convenient features include:Promotions that identify with families and communities like Name the Logix Robot and Decorate your Halloween pumpkin like the Logix robotOffers customers can’t refuse (to increase conversions) like Open a new account and receive $150, $50 for Auto Loan Referrals and Get up to $2,000No surcharge fees at their 30,000 ATMs and overdraft protection with courtesy payFinancial education to learn about money management skillsRisk-based, auto, participation and indirect loansConvenient loan and savings calculators, e-statements, remote deposit captures and mobile paymentsLanding Pages, Images, CTAs and ColorsLogix has a clean interface on their landing pages. The background isn’t harsh and the soft orange color is inviting. They also limit the amount of text with each ad. Logix uses the appropriate font sizes and large call-to-action (CTA) buttons to help members navigate pages.Images are consistent with their brand and usually only include the Logix robot and bold colors that display ads. Some pages include reviews and feedback with large images to help members feel confident when accessing the site.For credit unions that want to take a similar approach, Neil Patel suggests:Use customer reviews to show transparency…About 92% of consumers read reviews before making a purchase. Neil says to put testimonials everywhere, not just on a dedicated page that members may have trouble accessing.Support customers – Even in hard times…The COVID-19 update (above) lets members know the credit union is there to assist them. And, they can click on a simple link to find support and financial services (without having to come to a branch and stand in line).Limit information on the screen display area…Instead of lengthy applications, limit what’s shown. Remember, members are busy and they’re banking from their phones. A few CTA buttons can make it easier for them to get the information they need.Other ways to clean up your app include removing carousel banner ads. Clark’s shoe company did this after their A/B test and increased conversions by 17.5% while bounce rates fell 16%.Include high-quality images…As more people are online, they can choose where to shop and bank. Make your app visually appealing to them. Website design drives about 94% of traffic. Clean images can also reduce bounce rates – so always check your analytics.Next, don’t be afraid to pay more for staged images instead of generic stock images that people have seen before. Increasing your authenticity can improve your brand. Take a look at Logix’s image below for Advice and Planning. Again, the images are large and clear while the text is minimal.Limit landing page lengths (enough scrolling already!)…Creating a longer landing page doesn’t always mean consumers will stay on the page. It might confuse them if all you’re asking for is an email address, for example. Keep the content simple for better results.To test this, monitor your email signup page, a CTR to your blog page and a visits services page. Consider a company like Marketo for marketing automation. They provide short-form templates to reduce unnecessary scrolling.Banking and Loan Products, Education Center and Online SupportAnother area where Logix makes banking convenient is with its education center, shown above as Advice and Planning. And, for credit unions this is important.Your education center is a self-help area where members and applicants can have their questions answered. If you don’t have an education center or knowledge base, consider setting one up for your app. It might include YouTube videos, help topics, common questions, top articles, blog posts and tutorials about products and services.Check out Hubspot’s resource center and knowledge base options to personalize your pages and make them engaging.A few additional tips:Make it easy for customers/members to find solutions to routinely asked questions.Include a search bar option for questions not immediately viewable.Include chat and text options that can work with machine learning and AI. This should be available 24-hours a day. You can automate this feature through your software and it will free up humans so they can help members who come into your brick-and-mortar locations.Keep your content fresh, relevant and minimal.Monitor searches with Google Analytics. You’ll know the topics you’re missing and can make the necessary changes.Optimize your loan origination app across mobile devices. Instead of taking a website and trying to convert it into a mobile app, start a new app that’s optimized for mobile devices and social media.last_img read more

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