the future of member-facing technologies in credit unions

The Future of Member-Facing

Technologies in Credit Unions

Ron ShevlinSenior Analyst, Aite Group

ideas grow here

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PUBLICATION #225 (11/10)

www.filene.org ISBN 978-1-936468-04-1

Deeply embedded in the credit union tradition is an ongoing

search for better ways to understand and serve credit union

members. Open inquiry, the free flow of ideas, and debate are

essential parts of the true democratic process.

The Filene Research Institute is a 501(c)(3) not-for-profit

research organization dedicated to scientific and thoughtful

analysis about issues affecting the future of consumer finance.

Through independent research and innovation programs the

Institute examines issues vital to the future of credit unions.

Ideas grow through thoughtful and scientific analysis of top-

priority consumer, public policy, and credit union competitive

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developed in part by Filene i3, an assembly of credit union

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tive leader who relied on insightful research and analysis when

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iii

Filene Research Institute

v

Thanks to the Research Council members who provided feedback on

this report: David Mooney, Alliant Credit Union (Chicago, Illinois),

and Teresa Freeborn, Xceed Financial Credit Union (El Segundo,

California).

Acknowledgments

vii

List of Figures ix

Executive Summary and Commentary xi

About the Author xiii

Chapter 1 IT Management Challenges 1

Chapter 2 Trends in Member-Facing Technologies 11

Chapter 3 Prioritizing Member-Facing Technology

Opportunities 27

Appendix Survey Methodology and Demographics 33

Endnotes 35

Table of Contents

ix

1. Credit Unions Struggle with IT Coordination, Commitment,

and Risk

2. Keeping Up with Technology Is a Challenge for Many Credit

Unions

3. Half of Credit Unions’ IT Investment Is in Member-Facing

Technology

4. Credit Unions’ Online Channel Budgets Will Rise in 2011

5. Credit Unions’ Online Marketing Priorities

6. Credit Unions’ Online Service Priorities

7. Credit Unions’ Online Bill Payment and Money Transfer

Priorities

8. Credit Unions’ PFM Plans

9. Credit Unions’ Business Objectives for PFM

10. Credit Unions’ Mobile Banking Priorities

11. Credit Unions’ Online Channel Strategies

12. Credit Unions Rate Their Online Marketing Capabilities

13. The Benefits of Using PFM

14. The PFM Benefits Hierarchy

15. How PFM Has Changed Bank/Credit Union Customer Rela-

tionships by PFM Segment

16. PFM Platforms Will Provide User Comparisons

17. PFM Tools Will Connect Users with One Another

18. PFM Will Go Mobile

19. Business Objectives of Financial Services Firms’ Social Media

Efforts

20. Social Media Tools’ Support of Business Objectives

21. Member Reviews on America First Credit Union’s Site

22. Thomas Cook UK Provides Community-Driven Support on

Facebook

23. Mint.com Provides Community-Driven Support on Its Website

24. Potential Call Center Cost Reduction with a Community Sup-

port Site

25. Addison Avenue Federal Credit Union’s Augmented Reality App

Finds the Nearest ATM

26. Commonwealth Bank’s Augmented Reality App Shows Home

Prices

27. Smartphone Penetration in the United States

28. Forecasted Allocation of Bill Volume by Channel, 2010–2013

List of Figures

x

29. Smartphones Drive Changing Consumer Behavior

30. Credit Unions Are Ranked Highly on Customer Advocacy

31. Linking Credit Union Strategy to Member-Facing Technologies

32. 2009 Survey: Credit Unions Surveyed by Asset Size

33. 2010 Survey: Credit Unions Surveyed by Asset Size

xi

by Ben Rogers,

Research DirectorThis morning I checked account balances at several institutions,

received an e-mailed fraud warning, and downloaded a new app

from my credit union—all from an airport, all on my mobile phone.

I am not a typical credit union member, but no longer am I atypical

either.

By the end of 2011, smartphones will outsell standard cell phones,

and consumers will defect from bank and credit union websites to

pay billers directly. For younger consumers and older consumers

alike, good service often means efficient service that doesn’t involve

a human at all. In the face of all these changes, it’s understandable to

be playing catch-up, but credit unions without a defined technology

strategy don’t have long to do it.

What Is the Research About?The Future of Member-Facing Technologies in Credit Unions, by

Ron Shevlin, a senior analyst at Aite Group, examines the trends

in member-facing technologies and provides prescriptions for how

credit unions’ investments in member-facing technologies can align

with—or even drive—their business strategies. The danger of a

technology-oriented report is that it risks becoming obsolete almost

from the moment it’s published. That’s why Shevlin takes pains to go

beyond specific companies or technologies and outline how different

enterprise-level strategies will drive different approaches to member-

focused technologies.

What Did the Research Find?Information technology (IT) budgets are rising at credit unions,

and member-facing technologies already capture a large part of the

money spent, which makes it essential to spend wisely. Given the

consumer and technology trends outlined in the report, credit unions

should focus their attention in three places:

• Financial advice and guidance. Personal financial manage-

ment (PFM) tools like Mint.com and the constellation of similar

services are more than juiced-up budgeting tools; they allow

members an accessible and intuitive way to see their money. But

more important for credit unions, they can help members make

good decisions, they can provide excellent cross-promotion value

for the credit union, and they can save on staff time. Such tools

will tie members to the credit union, especially because they offer

Executive Summary and Commentary

xii

tailored advice, mobile functions, social aspects, and contextual

rewards.

• Social networking integration. Social media have become

popular at credit unions, but they are not always effective at

driving business results. That will change as credit unions zero in

on applications that actually encourage desired behavior among

members and potential members. The most promising areas

include influencing member preferences through ratings and

comments on products and services, and providing collaborative

support similar to a call center but in more efficient ways.

• Purely mobile apps. Perhaps the most important of all emerging

technology areas, mobile apps offer features already in demand

by consumers, like locational awareness for branches and ATMs,

augmented reality to help members use and manage their money

wisely, and transactional capabilities that can improve on current

card, check, and cash-based systems.

What Are the Credit Union Implications?Even the best technology won’t do a credit union any good in a stra-

tegic vacuum. To that end, Shevlin proposes three scenarios based on

the seminal 1997 book The Discipline of Market Leaders, by Michael

Treacy and Fred Wiersema. Credit unions should prioritize very dif-

ferent technologies depending on which of the following strategies

most closely matches their own:

• Operational excellence—Processes are optimized and stream-

lined to minimize cost and provide hassle-free service. This strat-

egy demands purely mobile apps and cost-saving social media.

• Product (or service) leadership—A focus on the core processes

of invention, product or service development, and market exploi-

tation. This strategy emphasizes connective social media and

cutting-edge mobile apps.

• Customer intimacy—An obsession with the core processes

of solution and relationship management. This strategy prizes

streamlined ways to offer remote and detailed financial guidance.

Cooperatives, Shevlin argues, can leverage any of the three for a

focus on member advocacy. And credit unions can’t wait five years to

decide which, because as you’re reading this, one of your members

is searching your website, the Internet, or an app store in the hopes

that you offer a service that meets her needs.

xiii

Ron ShevlinRon Shevlin is a senior analyst at Aite Group. He specializes in retail

banking issues including sales and marketing technologies, customer

and marketing analytics, loyalty management, person-to-person

(P2P) lending, personal financial management, social computing,

online banking, customer experience, and consumer behavior.

Mr. Shevlin is a recognized thought leader for his pioneering research

on right-channeling consumer interactions, the impact of customer

advocacy on future purchase intention, and sense-and-respond

marketing capabilities to improve sales and marketing efforts. He has

been widely quoted in the press, including CNN, NPR, U.S. Banker,

and Credit Union Management, and has been a keynote speaker at

numerous industry/client events including BAI Retail Delivery,

CUES CEO Network, DMA Financial Services, NICSA Technology

Forum, and Forrester Finance Forum.

Before joining Aite Group, Mr. Shevlin was a vice president at Epsi-

lon, where he led the database marketing firm’s financial services con-

sulting practice. He helped banks, brokerages, and credit card issuers

assess their database marketing and analytics competencies, develop

marketing strategies and plans, build marketing performance score-

cards, and measure customer engagement to improve their marketing

effectiveness and efficiency.

Prior to his time with Epsilon, Mr. Shevlin was a vice president and

principal analyst at Forrester Research, heading up research efforts

on customer loyalty, profitability, and consumer channel use in the

financial services industry. As part of his consulting work, he con-

ducted consumer research studies, developed predictive buying and

channel usage models, designed effective online marketing cam-

paigns and websites, and helped financial services firms craft profit-

able online channel strategies.

Mr. Shevlin received an MBA in finance and statistics from the

University of Texas at Austin and a BA in economics from SUNY

Binghamton. He is the author of Everything They’ve Told You about

Marketing Is Wrong (2008).

About the Author

Most credit union leaders recognize the need for and value of information technology (IT), but few can articulate their credit union’s com-prehensive strategy around IT. With the rising importance and sophistication of member- facing technology, that needs to change.

CHAPTER 1IT Management Challenges

2

Few credit union executives dispute that IT is an important compo-

nent of their firm’s strategy. IT enables credit unions to operate more

efficiently, better serve members, and improve the effectiveness and

efficiency of marketing efforts. For smaller institutions, IT can help

level the playing field, enabling them to better compete against their

larger competitors.

In theory, that is.

While credit unions recognize the benefits of technology and some

are fast adopters of it, many are constrained by a lack of executive

commitment to IT, poor coordination between IT and business

departments, and a general aversion to IT risk (see Figure 1).1 As a

result, 7 in 10 credit unions find keeping up with technology to be

challenging (see Figure 2).

Which statement best describes your credit union’s . . .

ExcellentCoordination between

business and IT

Happens with some depts.

Occurs, but is ineffective

Little coordination

Acceptable

17%

52%

17%

9%

4%

Very committedSenior management

commitment

Neither

Must be convinced case-by-case

Not committed

Somewhat committed

18%

49%

29%

0%

4%

4%

Very risk tolerantWillingess to invest

in new technologies

Neither

Somewhat risk averse

Very risk averse

Somewhat risk tolerant 31%

29%

31% 31%

4%

Figure 1: Credit Unions Struggle with IT Coordination, Commitment, and Risk

Source: Aite Group survey of 54 credit unions, January 2010.

3

Keeping up may be a challenge for many credit unions, but it cer-

tainly doesn’t stop them from investing in technology. Cornerstone

Advisors has found that, at the

median, credit unions invest

.475% of their assets in IT, with

more than half of that amount

going toward member-facing

technology in the form of

electronic delivery and strategic

systems (see Figure 3). As a point of reference, banks spent about

.3% of their assets on IT in 2009.2

Please rate the level at which keeping up

with technology is challenging for your

credit union (n = 91)

Not at all challenging

to a little challenging

29%

Considerably to

extremely challenging

36%

Somewhat challenging

35%

Figure 2: Keeping Up with Technology Is a Challenge for Many Credit Unions

Source: Aite Group survey of 91 credit unions, July 2009.

Figure 3: Half of Credit Unions’ IT Investment Is in Member-Facing Technology

% of assets

Median 25th percentile 75th percentile

Core systems .086 .061 .113

Data communications .038 .023 .055

Electronic delivery systems .219 .140 .344

Infrastructure .090 .060 .155

Strategic systems .042 .025 .062

Total .475 .309 .729

For 2010, nearly 6 in 10 credit unions expect their online

channel budgets to be at least 5% above 2009 levels, with 15%

anticipating an increase in excess of 15%.

4

The level of member-facing IT investment is rising. In

2009, 40% of credit unions increased their IT spend-

ing by more than 5% over 2008 spending levels, while

only 12% saw a decrease during that period. For 2010,

nearly 6 in 10 credit unions expect their online channel

budgets to be at least 5% above 2009 levels, with 15%

anticipating an increase in excess of 15%. Only 1 in 10

expects its online budget to decline. Optimism about

online channel budget increases extends into 2011

as well, as nearly two-thirds project an increase from

2010 to 2011, with only 2% forecasting a decline (see

Figure 4).

Member-Facing Technology PrioritiesThe result of increased IT budgets is a long list of

IT-related priorities for credit unions for the foreseeable future. From

an online marketing perspective, developing trigger-driven messaging

capabilities is a high priority for the many credit unions that don’t

currently have this ability (see Figure 5).

From a member service perspective, many credit unions plan to

develop, or are evaluating, the ability to chat online with members,

schedule meetings with branch reps through the online channel, and

deliver account alerts (see Figure 6).

Percentage of credit unions that anticipate the following

change in online channel budget in 2011 (n = 53)

Increase

>15%

18%

48%

32%

2% 0%

Increase

5%–15%

No change

(±4%)

Decrease

5%–15%

Decrease

>15%

Figure 4: Credit Unions’ Online Channel Budgets Will Rise in 2011


Currently has feature

Somewhat likely to develop

Very likely to develop

Not likely to develop

Percentage of credit unions that have or plan to develop

the following online marketing features (n = 54)

Targeted e-mail

communications

Use bill pay data

for marketing

Integration with customer

relationship management apps

Trigger-driven messaging

Intercept after login

Intercept before logout

40% 28% 23% 9%

25% 26% 32% 17%

13% 23% 38% 26%

13% 21% 40% 26%

13% 17% 26% 43%

8% 34% 38% 21%

Figure 5: Credit Unions’ Online Marketing Priorities


5

Most credit unions offer expedited bill payment as well as inbound

and outbound ACH transfers. Only about half, however, provide

person-to-person (P2P) payment services or eBills. Of those that

don’t, few plan to do so. Enabling members to pay bills online with a

debit or credit card is another feature not commonly found, with few

credit unions planning to offer card-based payments (see Figure 7).

Personal financial management (PFM) tools factor predominantly

into credit unions’ plans for the next few years. Currently, nearly one

in four credit unions offers PFM tools to its members. Of those that

don’t, 60% are considering doing so (see Figure 8). They’re expecting

to drive up both product sales and account balances with their PFM

implementations (see Figure 9).

In addition, credit unions have aggressive plans for developing

mobile banking capabilities, including alerts, marketing messages,

and bill pay (see Figure 10).






the following online service features (n = 54)

Change of address

Online chat

Fee dispute

Cobrowsing

Schedule meetings

with branch reps

Invite to chat

Account alerts

via e-mail

Check reorder 83% 4% 6% 8%

68% 19% 9% 4%

40% 19% 23% 19%

21% 15% 28% 36%

23% 8% 32% 38%

11% 8% 28% 53%

8% 21% 29% 42%

4% 15% 37% 44%

Figure 6: Credit Unions’ Online Service Priorities


6






the following online payment features (n = 54)

Expedited bill payment

In-bound ACH transfers

P2P transfers

Ebills

Debit card bill pay

Credit card bill pay

Outbound ACH transfers

80% 7% 2 11%

74% 11% 6% 9%

70% 15% 6% 9%

46% 11% 22% 20%

44% 9% 26% 20%

34% 8% 23% 36%

23% 12% 25% 40%

Figure 7: Credit Unions’ Online Bill Payment and Money Transfer Priorities


Which statement best describes your firm’s status

regarding online PFM tools? (n = 54)

Not considering offering PFM tools

on our online banking site

31%

Currently offer PFM tools


23%

Considering offering PFM tools


46%

Figure 8: Credit Unions’ PFM Plans


7

Strategies and CapabilitiesWhat determines which IT priorities and opportunities will get

funded? Ideally, a clear sense of strategic direction and understanding

of the business capabilities that need to be developed and improved.

Many credit unions believe that they have that clear sense of direc-

tion. Most point to a single overarching strategy that guides their

member-facing technology investments: More than one-third will

focus on improving the member experience, while nearly 3 in 10






the following mobile features (n = 52)

Account balance

Account payment alerts

Interbank funds transfer

Intrabank funds transfer

Short message service (SMS)

marketing messages

Bill pay

40% 33% 15% 12%

28% 44% 12% 16%

21% 27% 29% 23%

21% 27% 29% 23%

14% 33% 29% 24%

12% 29% 38% 21%

Figure 10: Credit Unions’ Mobile Banking Priorities


Percentage of credit unions that consider the following to be

very important business objectives of PFM (n = 54)

Increase customer engagement

Improve brand perception

Increase products owned per customer

Achieve competitor parity

Increase customer retention

83%

65%

65%

65%

48%

Increase account balances 40%

Improve customer data collection 35%

Decrease service costs 32%

Figure 9: Credit Unions’ Business Objectives for PFM


8

will improve either their member service or their online marketing

capabilities (see Figure 11).

By their own estimate, credit

unions have a long way to go in

improving their online market-

ing capabilities. Roughly half

rank themselves in the top or

second quadrant for their ability

to integrate online and offline

marketing initiatives and optimize the allocation of marketing invest-

ments across channels. They’re critical, however, of their firm’s ability

to use online bill pay data to drive marketing efforts or identify and

capture leads generated on their website (see Figure 12).

Which of the following best describes the primary focus of

your credit union’s online channel investments? (n = 54)

Improving the member experience

Improving member service

No primary focus

Other

Improving online sales/marketing

37%

28%

28%

6%

2%

Figure 11: Credit Unions’ Online Channel Strategies


Roughly half rank themselves in the top or second quadrant for

their ability to integrate online and offline marketing initiatives

and optimize the allocation of marketing investments across

channels.

Compared to your peers, in which quadrant would you rank

your credit union along the following capabilities? (n = 54)

Top 2nd 3rd Bottom

Integrating online and

offline marketing efforts

Optimizing marketing

investments across channels

Using online data to fuel

targeted marketing efforts

Capturing leads generated

through our website

5% 50% 29% 17%

10% 38% 29% 24%

9% 23% 26% 42%

5% 14% 33% 48%

Figure 12: Credit Unions Rate Their Online Marketing Capabilities


9

Strategic ChallengesWith a long list of development priorities, aversion to IT risk, and

issues in securing executive commitment to IT investments, many

credit unions lack the following:

• A strategic basis for IT priorities. While many credit unions say

that the focus of their online channel investments is improving

the member experience or improving online service capabilities,

their planned investments don’t align with these objectives. Few

credit unions, for example, plan to implement service-related

features like chat or functions like address changes or fee disputes.

Money transfer capabilities are, for the most part, nonexistent

among credit unions and will continue to be through the end of

2010.

• A realistic return on investment (ROI) for their member- facing

IT investments. Although many credit unions expect PFM to

help increase product sales and account balance, few have any

sense for how much of an increase PFM will cause, or how PFM

will produce this increase. The result is likely to be comparable to

credit unions’ experience with expedited bill payment, which was

supposed to help generate new revenues but has been a disap-

pointment for most of the credit unions that have deployed it.

• A process for establishing a technology strategy. The combina-

tion of an executive team that must be convinced of investing in

IT on a case-by-case basis and an aversion to IT risk that exists

in many credit unions creates a barrier to developing a coherent

strategy regarding member-facing technology—or may be the

result of not having an explicit strategy for deploying member-

facing technology (and IT, in general). A process that establishes a

technology strategy that is effectively linked to the credit union’s

business strategy might not make the executive team less averse to

IT risk, but it should help create an environment where fund-

ing is established for business programs that include multiple IT

initiatives and lessen the need to develop detailed business cases

for every IT expenditure.

• A strategic view of member-facing technology. Few credit

unions’ investments in member-facing technology are driven by

a long-term view of the capabilities they’re trying to provide to

members. For instance, many credit union executives view PFM

as a tool for members to do budgeting, rather than as a platform

for providing financial advice and guidance. Likewise, many

credit unions have deployed e-statements or expedited bill pay-

ment as strictly a cost-cutting or revenue-generating tactic instead

of as part of a concerted effort to maximize members’ ease of

doing business with the credit union.

10

Future developments in member-facing technologies will only

exacerbate these strategic challenges. Consumers are becoming

more comfortable with smartphones and sophisticated Web tools.

Competitors, especially large banks, are increasingly rolling out new

electronic services, which reduces costs for them but forces smaller

players like credit unions to stay current.

The first waves of new retail finance technolo-gies are already in place. Members maintain strong interactions with their institutions purely through remote delivery channels, and this trend will continue to deepen. In the next five years, consumers will demand better finan-cial advice and guidance, social networking integration, and purely mobile applications.

CHAPTER 2Trends in Member-Facing

Technologies

12

Over the next five years, three interrelated trends will drive develop-

ments in member-facing technologies: (1) financial advice and guid-

ance, (2) social networking integration, and (3) purely mobile apps.

Financial Advice and GuidanceAlthough PFM tools have been around—both online and offline—

for many years, a number of factors have helped drive interest in, and

adoption of, these tools in the past three years:

• The economy. The decline in the economy over the past few

years has caused consumers to become more disciplined about

managing their finances. To some extent, PFM has become the

new New Year’s resolution: Instead of vowing to lose weight or

stop smoking (and then joining a gym or entering a stop-smoking

program), Americans are vowing to get their finances in order,

turning to tools like PFM as the first step.

• Demographics. Helping to drive interest in PFM is the fact that

Gen Yers are more involved in managing their financial lives than

previous generations were when they were twentysomethings. Just

as important, however, Gen Xers (in their early 30s to mid-40s)

are reaching the prime of their money management years, trying

to pay off student loans, buy homes, purchase cars, and save for

retirement and their children’s education—and looking for tools

to help manage all of this.

• New tools. With an increase in demand for PFM tools has come

an increase in supply. NetBanker estimated that six new PFM

sites launched in the month of September 2008 alone.3 In 2009,

even more PFM sites emerged, and thousands of personal finance

apps have become available for Apple’s iPhone.

• Financial institution marketing. For the past 10 years, many

financial institutions’ (banks and credit unions) online channel

efforts were focused first on driving online banking adoption,

then on online bill pay usage, and more recently, on e-statement

13

enrollment. Only recently—in a seemingly knee-jerk reaction to

the three million users Mint.com has acquired—have financial

institutions focused on increasing adoption and usage of their

PFM offerings.

Although PFM users still represent just a minority of consumers,

many of them attribute a number of benefits to their use of PFM

(see Figure 13):

• Control. Three-quarters of PFM users credit PFM with giving

them better control over their finances, while more than 7 in 10

say that thanks to PFM, they finally know where all their money is.

• Savings. Forty-one percent of PFM users save more because of

PFM tools.

• Fee reduction. Roughly one in five PFM users has reduced the

amount he or she pays in late fees, overdraft fees, or credit card

interest as a result of using PFM.

PFM users progress up a benefits pyramid (see Figure 14). Although

many users say that they’ve gained more control over their finances

by using PFM, about 3 in 10 report that gaining more control is the

only benefit they’ve reaped. One-third, however, have more control

and are saving more. Finally, a third segment—accounting for about

30% of PFM users—have more control, are saving more, and are

paying less in fees.

What impact has using PFM had on your financial life? (n = 976)

I have better control of my financesControl

I am managing fewer accounts because

I’ve consolidated some accounts

I finally know where all my money is

76%

72%

20%

I am saving more moneySavings 41%

21%I am paying less in late fees on my credit card

due to alerts notifying me my bill is due

Fees

21%I am paying less in late fees on my credit card

because I am better managing my money

19%I am paying fewer overdraft fees because I am

more aware of and in control of my money

18%I am paying less interest on my credit card

due to reducing my monthly balances

17%I am paying fewer overdraft fees due to

alerts that tell me my balance is low

Figure 13: The Benefits of Using PFM

Source: Aite Group survey of 976 PFM users, January 2010.

14

What makes this pyramid so important to credit

unions is the impact PFM has on users’ relation-

ships with their banks and credit unions as they

progress up the hierarchy. PFM users at the top of

the pyramid are more likely than other PFM users

to stay with their bank/credit union, increase

account balances, recommend their bank/credit

union, and open more accounts (see Figure 15).

Demographics don’t account for the differences

among the three groups—the specific PFM

features and functions that each group uses

are what differentiates the three groups. The

users who reap the most benefits are those who

are most likely to use PFM tools to (1) access

financial education material provided by the

PFM site they use, (2) look for advice, guidance,

and recommendations about managing their

financial lives, and (3) network with other users and compare their

financial lives and decisions with those of their peers.

Many credit union executives, however, don’t immediately think of

these capabilities as components of a PFM solution. Instead, they

think of PFM as simply budgeting and expense categorization.

Their view will need to change. PFM will evolve to become:

• Educational/advice-oriented. If a budgeting capability was the

only thing credit union members wanted and needed, PFM adop-

tion would be at 80% instead of 20%. Instead, they want—and

need—help making decisions about their financial lives, like how

to allocate funds between checking and savings accounts, or how

to reduce the amount they pay in account fees. To date, however,

credit unions’ online educational efforts have predominantly

been in the form of text-based articles, offered on the public site.

These efforts will shift over the next three to five years from being

Fees +

Savings +

Control

Savings +

Control

Control

Figure 14: The PFM Benefits Hierarchy

Source: Aite Group.

Figure 15: How PFM Has Changed Bank/Credit Union Customer Relationships by PFM Segment

Segment:

Less likely to

switch banks

Increased account

balances

More likely to

recommend

financial

institution

Increased

purchase

consideration

Opened new

accounts

Fees + Savings + Control 31% 26% 23% 22% 17%

Savings + Control 27% 22% 17% 18% 10%

Control 16% 7% 13% 13% 7%

No impact 6% 1% 3% 3% 3%

Source: Aite Group survey of 976 PFM users, January 2010.

15

stand-alone educational material to being integrated into PFM

platforms and provided to members in the context of their own

financial situation.

• Social. If the business world has learned anything from Amazon.

com, it’s that consumers like to know what other consumers

are doing. This applies to spending and investing our money as

much as it does to buying books. To date, however, credit unions

have been slow to provide user comparisons. One new platform,

from Bundle.com, makes comparisons a core part of its offer-

ing (see Figure 16). Beyond providing member comparisons,

however, PFM platforms will evolve to help members connect

to other members to discuss and answer questions about their

financial lives, similar to what Citibank is trying to do today (see

Figure 17).

Figure 16: PFM Platforms Will Provide User Comparisons

Source: Bundle.com.

Figure 17: PFM Tools Will Connect Users with One Another

Source: Citibank.

16

• Mobile. Some credit union executives express doubts about the

need for PFM to go mobile. Their view of PFM is limited to

budgeting and expense categorization. To maximize the value of

financial advice and guidance, messages need to be delivered at

the point of decision. At the point of purchase, PFM will help

members address questions like, Can I afford this? Should I use

my debit or credit card? What will this do to my monthly budget?

(see Figure 18).

• Rewarding and fun. Over the past few years, financial institu-

tions have offered customers financial incentives to bank or pay

bills online. They’ll do the same to get customers to use PFM.

But beyond simply exhorting or incentivizing members to use

PFM, credit unions will reward members for engaging with PFM,

for example, by awarding points for setting up a budget, keep-

ing to that budget, interacting with other members by answer-

ing questions, etc.—similar to rewards programs associated with

credit or debit cards that reward customers for their purchases.

Social Media IntegrationNo doubt about it, social media is a hot topic among credit unions.

But although many have a Facebook page or a Twitter account, credit

unions’ use of social media tools is still in its infancy and—impor-

tantly—is still treated as an experiment or isolated test.

Figure 18: PFM Will Go Mobile

Source: Citibank.

17

Credit unions face two key challenges in expanding their use of

social media: (1) prioritizing the goals and objectives for social media

investments, and (2) aligning social media tools with the business

objectives they’re best suited to.

Building brand affinity, engaging customers, and building brand

awareness are at the top of the list of financial firms’ objectives for

using social media. This list will expand even more over the next

couple of years. Even objectives that aren’t a focus of many firms

today—like reducing marketing and customer service costs—will

become more prevalent in two years (see Figure 19).

Financial services executives agree that the effectiveness of social

media tools in generating awareness, influencing consumer

Percentage of financial institutions that consider the following to be

major objectives of their social media efforts (n = 89)

Building brand affinity

Building brand awareness

Managing corporate reputation

Retaining customers

Engaging customers

78%

64%

75%

61%

75%

59%

65%

44%

43%

22%

21%

20%

9%

9%

71%

Managing stakeholder opinions37%

Generating sales revenue48%

Managing crises30%

Reducing customer service costs29%

Reducing marketing costs31%

In 2 years Today

Figure 19: Business Objectives of Financial Services Firms’ Social Media Efforts

Source: Aite Group survey of 89 financial services executives, August 2010.

18

preference, and increasing member engagement varies. While

roughly 4 in 10 see Facebook as very effective in generating aware-

ness, far fewer see it as very

effective in influencing con-

sumers’ preferences of financial

firms. For this objective, con-

sumer review sites are consid-

ered to be more effective. And

despite the hype around Twitter,

few see it as particularly effective in achieving the key business objec-

tives most frequently associated with social media (see Figure 20).

While Facebook pages, Twitter IDs, and blogs will continue to be

popular with credit unions over the next few years, credit unions will

maximize the economic impact of social media tools and techniques

by focusing on (1) influencing member preferences and (2) providing

collaborative support.

While roughly 4 in 10 see Facebook as very effective in generat-

ing awareness, far fewer see it as very effective in influencing

consumers’ preferences of financial firms.

Percentage of financial institutions that consider the following social media tools

to be very effective at achieving the following objectives (n = 89)

FacebookGenerate awareness

YouTube

Twitter

Customer review sites

Blogs

42%

35%

25%

24%

22%

User-generated content 20%

Customer review sitesInfluence preference

User-generated content

Facebook

Twitter

Blogs

40%

28%

26%

YouTube 12%

15%

36%

26%

FacebookIncrease engagement

Customer review sites

Twitter

Blogs

User-generated content 31%

26%

26%

22%

YouTube 11%

Figure 20: Social Media Tools’ Support of Business Objectives

Source: Aite Group survey of 89 financial services executives, August 2010.

19

Influencing Member PreferencesWith the exception of customer review sites, credit union executives

see few social media tools as being particularly effective at influenc-

ing consumer preferences. But few of the popular review sites (like

Yelp, for example) provide much financial services content. As a

result, credit unions will bring product reviews to their own sites,

similar to what America First Credit Union does on its site today (see

Figure 21). America First accomplishes a number of objectives with

user reviews integrated into its site, including the following:

• Supporting prospects’ decision process. Basic account infor-

mation like rates and fees is only part of the information that

consumers need to make account decisions. User reviews help

them understand what it’s like to interact with, and be a member

of, the credit union.

See also: Credit Unions and Social Media: Engaging Young Adults (Madison, WI: Filene Research Institute, 2008).

Figure 21: Member Reviews on America First Credit Union’s Site

Source: www.americafirst.com/personal/checking-savings/checking/checking.cfm.

20

• Demonstrating member advocacy. Advocacy—the perception

that the credit union is doing what’s best for the member and not

just its own bottom line—is a key contributor to member loyalty.

By enabling site visitors to see the low ratings as well as the high

ones, America First is helping establish itself as being transparent

and truly concerned with helping prospects and members make

the right decision.

• Gathering market intelligence. If America First wanted to know

how its members felt about its products, it could hire a market

research firm to survey members. This would likely carry a high

price tag and would only capture member sentiment at a point

in time. By enabling member reviews on its site, America First

continually monitors member perceptions, gains valuable feed-

back about product perceptions, and gauges whether its product

improvement efforts are paying off.

• Engaging members. People like to have their opinions heard and

valued. Rather than providing feedback through anonymous sur-

veys, America First members see their reviews posted on the site

and can potentially become a “top” contributor. Negative reviews

that America First responds to further helps it demonstrate advo-

cacy to its members.

Why are member reviews effective at influencing preferences?

Because consumers have come to mistrust the recommendations of

financial firms (and marketers, in general). Consumers believe that

if other people have chosen a particular product or provider, then it

might be good for them, as well. It’s important to give prospects the

opportunity to see both sides of the coin, however. Negative reviews

help foster a belief that the credit union is transparent and isn’t hid-

ing something or trying to “game the system.”

Credit unions will also influence member preferences with two other

social media–type techniques:

• Member comparisons. Similar to the user comparisons that

PFM platforms will provide, product description pages of credit

union websites will provide Amazon.com-like comparisons that

show how many members opt for various account options (for

example, free checking versus fee-based accounts) in order to help

members make smart product choices.

• Product blogs. Many credit unions have blogs, but while a

number of them are displaying blog post links on their website’s

home page, few (if any) have created product-specific blogs that

are integrated into the product description pages of the website.

Product blogs give marketers the opportunity to incorporate

timely information that relates to a product—for example,

21

changing interest rates—into the product page, keeping the page

fresh and dynamic.

Providing Collaborative SupportAlthough a few financial firms have turned to social media to

provide customer support—most notably Bank of America with its

“BofA_Helps” Twitter handle—these efforts are more akin to creat-

ing a new channel for providing traditional means of support than

they are providing customer support in a new way.

In the financial services arena, Thomas Cook UK is an early adopter

of providing collaborative, community-driven customer support,

doing so on its Facebook page (see Figure 22). Online PFM platform

provider Mint.com also provides community-driven support directly

from its website (see Figure 23).

The benefits of a collaborative community-driven support capability

to credit unions are fivefold:

• Reduced call volume. Reducing call center volume depends on

(1) the effectiveness of a credit union’s ability to drive awareness

and usage of the site and (2) the demographics of the member-

ship base. A few months after the launch of its community site,

Mint.com has seen 3% of its users enroll in the support site.

With effective marketing of the capability, a 500,000-customer

Figure 22: Thomas Cook UK Provides Community-Driven Support on Facebook

Source: www.facebook.com/pages/Thomas-Cook-UK/188819677670#!/pages/Thomas-Cook-UK/188819677670?v=

app_227698805184.

22

financial institution could deflect $2 million in call center costs

over five years (see Figure 24).

• Expanded knowledge base. Many credit unions have an FAQ

section on their site in an attempt to address site users’ ques-

tions about the credit union. These pages often contain sparse,

outdated information. Likewise, many call centers maintain—or

try to maintain—knowledge bases to help reps answer incom-

ing questions. Community-driven sites help increase the pool of

knowledge to fuel both the online FAQ and call center efforts.

• Better employee training. An actively used community support

site provides a mechanism to train employees on the types of

Figure 23: Mint.com Provides Community-Driven Support on Its Website

Source: satisfaction.mint.com/mint.

Year 1 Year 2 Year 3 Year 4 Year 5

Community support penetration 3% 6% 9% 12% 15%

Reduced calls/member/year 1 1 2 2 2

Savings $75,000 $150,000 $450,000 $600,000 $750,000

$2,025,000

Source: Aite Group.

Figure 24: Potential Call Center Cost Reduction with a Community Support Site

Number of members 500,000

Support calls/year/member 4

Total number of calls 2,000,000

Cost/call $5

Total support cost $10,000,000

23

questions members frequently ask, as well as provide them with

the best responses to those questions.

• Enhanced member segmentation. Aite Group research has

found that the members who are most engaged with their credit

unions are the most loyal members. Participation in a community

support site is a signal that a member is engaged and likely to

expand his or her relationship with the credit union and refer it to

friends and family members.

• Increased member engagement. As with member review pages,

a community support site lets members engage with the credit

union and other members.

Integrating community-driven support will rapidly evolve in the next

three years as emerging tools will make it easier to integrate with

existing CRM legacy applications.

Purely Mobile AppsMany credit unions are currently focused on porting existing online

banking capabilities to the mobile channel. Three developments—

promising capabilities deliverable only through a mobile device—will

help shape the future of member-facing technology for credit unions:

• Location awareness. The goal of location-aware applications

is to provide users with information based on the context of

the situation or location that they’re in. The apps rely on GPS

(global positioning systems) or triangulation through radio or

cell stations to determine the current location of the user. Loca-

tion awareness technology is expanding beyond outdoor location

identification to indoor identification with the help of Wi-Fi,

beacons, and proximity tag technologies.

• Augmented reality. Not to be confused with virtual reality, aug-

mented reality builds on location awareness to create new capa-

bilities. Wikipedia.org defines augmented reality as “a live direct

or indirect view of a physical real-world environment whose

elements are augmented by virtual computer-generated imagery”

(see Figure 25).

• Mobile payments. More prevalent outside the United States,

mobile payments are gaining mindshare here with the growing

popularity of smartphones. Four technologies enable mobile pay-

ments: (1) SMS text messages sent by a consumer to a short code,

resulting in a charge to the phone bill, (2) direct mobile billing,

where a consumer uses the mobile billing option during check-

out at an e-commerce site, (3) mobile web payments that use the

wireless application protocol (WAP), and (4) contactless near

field communication (NFC), which is used mostly for purchases

made in physical stores or transportation services.

24

Examples incorporating these technologies include the following:

• ATM finder. Addison Avenue Federal Credit Union’s (AAFCU’s)

ATM finder draws from a database of every ATM in the United

States, not just those affiliated with AAFCU. The app shows

which ATMs do not charge a fee for Addison Avenue members

(see Figure 25).

• Property information. Commonwealth Bank (Australia)

launched an app that lets iPhone users point the camera of the

phone at a house or apartment and get current for-sale or rental

information, as well as data on what nearby properties have sold

for (see Figure 26).

• Shopping comparison. An Apple iPhone commercial demon-

strates the new mobile shopping experience. In it, purchasing

an espresso is made easier as the user points the camera at the

product. The iPhone retrieves product information through the

barcode, identifies the price of the product across retailers, and

helps the user navigate to the nearest store.

• Mobile P2P payments. Patelco Credit Union has launched

P2P mobile payments and integrated the service into its mobile

Figure 25: Addison Avenue Federal Credit Union’s Augmented Reality App Finds the Nearest ATM

Source: www.adverblog.com/archives/003741.htm.

Figure 26: Commonwealth Bank’s Augmented Reality App Shows Home Prices

Source: www.commbank.com.au/about-us/news/media-releases/interactive/iphone/.

25

banking platform. The service enables Patelco members to send

an electronic payment directly to another person via e-mail or

text message from their mobile phone.

The case for purely mobile applications is supported by consumer

attitudes about their mobile devices. Currently, about one in four

adults in the United States has a smartphone. By 2012, that per-

centage will be at least half, as sales of smartphones already rapidly

outpace the sale of feature phones (see Figure 27).

The continued adoption of smartphones will accelerate behav-

ior changes in both retail and bill payments. Current smartphone

owners would be more likely than other consumers to change how

they pay their bills if mobile bill pay were easier (see Figure 28). As

more billers and consolidators enable mobile bill payment, bills paid

through the channel will grow fivefold between 2010 and 2013 (see

Figure 29).

Beyond meeting consumer demand for mobile applications, purely

mobile apps will be an important part of credit unions’ member-

facing technology strategies because they’ll give credit unions oppor-

tunities to:

• Position and differentiate themselves. Despite the early exam-

ples, few financial institutions are deploying purely mobile apps.

For many, IT budgets are tied up in maintenance and compliance

efforts. First-mover credit union apps will have an opportunity to

position themselves as technology leaders—critical to appealing

Bank site (mobile) Biller site (mobile)

Nu

mb

er o

f co

nsu

mer

bill

s p

aid

th

rou

gh

th

e

mob

ile c

han

nel

(in

mill

ion

s)

2010 2011e 2012e 2013e

0

100

200

300

400

500

600

700

Figure 28: Forecasted Allocation of Bill Volume by Channel, 2010–2013

Source: Aite Group Survey of 4,696 US consumers, July 2010.

2008 Q3 2009 Q3 2010e Q3

49%

31%19%

13%

51%

69%81%

87%

2011e Q3

Smartphones Feature phones

Figure 27: Smartphone Penetration in the United States

Source: blog.nielsen.com/nielsenwire/consumer/

smartphones-to-overtake-feature-phones-in-u-s-by-2011.

26

to today’s younger consumers, who are the leading adopters of

mobile technologies and the ones whom many credit unions are

trying to attract. In addition, early deployers will have a window

of opportunity to lay claim to services other financial institutions

don’t have.

• Increase member engagement. Declining branch traffic, limits

in the range (and value) of transactions that members can per-

form online, and the fact that not everyone uses—or will use—

social media pose challenges to engaging members. Purely mobile

apps give credit unions opportunities to engage members in ways

that haven’t been possible before.

• Create new and unique capabilities. Many of the features and

services that credit unions provide online are simply transactions

and interactions that were performed offline or in other channels

(although they are more convenient and faster online). Technolo-

gies like augmented reality give credit unions that are trying to

build car loan volume the opportunity to do so by giving mem-

bers tools to point their cell phone at the car of their choice, see

the best price at multiple dealers and the financing options avail-

able to them, and be preapproved on the spot.

Percentage of consumers very likely to

change how they pay bills if they could

pay bills more easily on a smartphone

Other consumers

9%

27%

Smartphone users

Figure 29: Smartphones Drive Changing Consumer Behavior

Source: Aite Group Survey of 4,696 US consumers, July

2010.

Knowing what technology i s available is only a start. Prioritizing technology investments to match a credit union’s strategy is the goal. Before they spend on new IT capabilities, credit unions should identify whether their value proposition includes operational excel-lence, product or service leadership, or customer intimacy—and then invest accordingly.

CHAPTER 3Prioritizing Member-Facing

Technology Opportunities

28

With all the existing technology priorities already on credit unions’

plates, adding new opportunities that incorporate developments in

advice and guidance, social media integration, and purely mobile

apps is a daunting task.

How will a credit union know which technologies to invest in? By

establishing and clarifying its business strategy and clearly defining

the capabilities it needs to differentiate itself in the market to attract

and retain members.

Customer Service Isn’t a DifferentiatorAsk a group of credit union executives what differentiates their own

credit union, and the majority will say “our customer service.”

Many are living in the land of Lake Wobegon (where all the children

are above average). It simply isn’t possible. Superior customer service

doesn’t qualify as a valid differentiator for the following reasons:

• Service may be what a firm does best, but it doesn’t mean its

service is comparatively better. For a firm to differentiate itself

on service, it has to be able to quantify its service delivery supe-

riority in an uncontestable way. Few—if any—credit unions can

clear that hurdle.

• Service means different things to different people. Asked

why their firm’s customer service is better, credit union execu-

tives will often say “because of our people.” But for many credit

union members, speaking with an employee means something

went wrong. To them, never having to speak with a credit union

employee is the best service of all.

Discipline of Market LeadersIn 1997, Michael Treacy and Fred Wiersema published The Disci-

pline of Market Leaders, in which they show how high-performing

firms excelled in one of three dimensions while maintaining com-

petitive levels of performance in the other two4:

29

• Operational excellence. Processes are optimized and streamlined

to minimize cost and provide hassle-free service.

• Product (or service) leadership. A focus on the core processes

of invention, product (or service) development, and market

exploitation.

• Customer intimacy. An obsession with the core processes of

solution development (helping the customer understand exactly

what is needed), results management (ensuring the solution gets

implemented properly), and relationship management.

Friendly people who truly care about serving members are a valuable

asset to a credit union. But it’s not a strategy. Credit union executives

may believe their firms excel in customer service, but that doesn’t

mean they provide hassle-free service at the lowest cost. And while

many credit unions have friendly, helpful employees, that doesn’t

translate into the book’s definition of customer intimacy.

While the authors do an excellent job of defining and describing

the three dimensions that shaped the strategies of the market leaders

included in the book, the book doesn’t help other firms figure out

how to pick a dimension to focus on. What the authors didn’t realize

was that different consumers put a different value on each of the

dimensions.

Customer AdvocacyForrester Research has demonstrated that customer advocacy—the

perception that a financial institution does what is right for its

customers and not just its own bottom line—is closely linked to

customer loyalty and purchase intention.5 The attributes of customer

advocacy are closely tied to the disciplines of market leaders. Advo-

cacy is the demonstration of the following:

• Simplicity. Advocacy-driven firms simplify their customers’

financial lives, eliminate complexity, and make it easy for custom-

ers to deal with them.

• Transparency. Advocates show customers fair rate and perfor-

mance comparisons and lay out the rates and fees they charge.

• Benevolence. Benevolent firms are perceived as taking their cus-

tomers’ sides when problems arise.

But different consumers have different views of what advocacy is,

however. Different groups of consumers believe that advocacy is:

• Human-centered. The average age of these consumers exceeds

the average age of the overall US population. They’re more likely

than other consumers to bank at branches, and they believe advo-

30

cacy is demonstrated through friendly and helpful employees who

take the time to listen to their problems and concerns.

• Advice-oriented. Another set of consumers believes that while

human-centered advocacy is important, it’s even more important

for financial institutions to provide objective advice and guidance

about financial products—in order to be a customer advocate.

This group, whose average age is younger than the average age

of the overall US population, is likely to research, and apply for,

financial products online.

• Operationally driven. A third group believes that advocacy is

best exhibited when firms respond quickly to inquiries, alert

customers to account changes or issues, rarely or never make

mistakes, and empower employees to resolve problems on their

own. These consumers are above average in their level of income

and assets.

Tied with credit unions at the top of the list for being perceived as

an advocate for its members is USAA (see Figure 30).6 The firm is

often cited for its superior customer service, and a deeper dive into

its strategy reveals that it’s advocacy that drives the firm, and not

simply “superior customer service.” Specifically, USAA focuses on the

following:

• Providing advice and guidance. USAA gives members free

access to financial advice, delivered by professionals who are paid

by salary, not commission. In contrast to other financial services

providers who either divert direct contact or charge fees for

customized service, USAA encourages

its members to call in for free financial

advice and guidance.

• Gathering intelligence from the front

line. USAA customer service represen-

tatives work in small 10- to 20-person

teams that specialize in products like

insurance or banking. USAA arms front-

line staff with tools to suggest services

and process enhancements. Ideas from

the front line make their way into service

enhancements. For example, USAA

changed its insurance billing cycles to

synchronize with the military’s biweekly

pay cycles, making cash flow easier on

members. Policies like this help bolster

advocacy ratings from USAA members.

• Managing relationships. Speaking at a

recent industry conference, a USAA

Percentage of customers of each firm who agree with the statement:

“My financial provider does what’s best for me, not just its own bottom line.”

Credit unions

Wells Fargo

Bank of America

JPM Chase

USAA

68%

68%

40%

33%

31%

TD Commerce Bank 28%

Fifth Third 26%

Citibank 26%

HSBC 16%

Figure 30: Credit Unions Are Ranked Highly on Customer Advocacy

Source: finance.yahoo.com/banking-budgeting/article/108801/the-least-trusted-banks-in-america?

mod=bb-checking_savings, Aite Group.

31

executive commented that the firm’s management team “used

to talk about providing better service for customers but always

started their business planning from a product-centric orienta-

tion. That’s changed. We have now shifted operationally to act

like a true relationship-management company.”7

Market Leadership, Advocacy, and Member-Facing TechnologyThe dimensions of market leadership, views of customer advocacy, and

trends in member-facing technology are tightly linked (see Figure 31).

Operational excellence is valued most highly by consumers who

believe advocacy is best defined by firms that respond quickly and

that rarely or never make mistakes. A credit union competing on

the basis of operational excel-

lence will attract consumers

who view advocacy as opera-

tionally driven. In turn, these

credit unions will place greater

emphasis on investing in

member-facing technologies like

purely mobile apps because they

support their need to maintain superior performance in operational

excellence.

Customer intimacy—an obsession with the core processes that help

customers understand what they need and ensure the solution is

implemented properly—appeals to credit union members who view

advocacy through the advice-oriented

lens. They want financial institutions

to provide advice and solutions that are

right for them. Credit unions compet-

ing on the basis of their superiority in

this dimension will place a high priority

on developing PFM solutions and tools

like member review sites to help mem-

bers make the best possible financial

decisions.

Credit unions that compete on the basis

of service leadership will focus their

technology development efforts on com-

munity-driven collaborative support, as

well as purely mobile apps that integrate

customer support capabilities with call

center and branch representatives.

Purely mobile apps and

integrated social media

Financial advice

and guidance

Integrated social media

and purely mobile apps

Operational

excellence

Customer

intimacy

Service

leadership

Figure 31: Linking Credit Union Strategy to Member-Facing Technologies

Source: Aite Group.

Credit unions competing on the basis of their superiority in

customer intimacy will place a high priority on developing

PFM solutions and tools like member review sites to help

members make the best possible financial decisions.

33

Survey Methodology and Demographics

Two surveys of credit union executives were cited in this report. The

first was a July 2009 survey of 93 US credit unions fielded by Aite

Group with the cooperation of the Credit Union Executives Society

(CUES). Figure 32 shows these credit unions by asset size in millions

(M) or billions (B).

The second survey was conducted in January 2010 and included

executives from 54 credit unions. Survey participants were recruited

with the help of Everything CU, an online community resource for

credit union professionals, headquartered in Holyoke, Massachusetts.

Respondents represented a range of credit unions by asset size (see

Figure 33).

Appendix

What is the asset size of your credit union? (n = 54)

Less than $100M

27%

$100M–$250M

22%$250M–$550M

18%

$500M–$1B

18%

$1B–$10B

16%

Figure 33: 2010 Survey: Credit Unions Surveyed by Asset Size


What is the asset size of your credit union? (n = 93)

Less than $100M

46%

$100M–$250M

27%

$250M–$550M

11%

$500M–$1B

9%

$1B–$10B

7%

Figure 32: 2009 Survey: Credit Unions Surveyed by Asset Size

Source: Aite Group survey of 93 credit unions, July 2009.

35

1. Survey respondents were recruited through Everything CU, an

online community of credit union executives, and may not be

representative of the overall credit union population.

2. FDIC and searchfinancialsecurity.techtarget.com/news/

article/0,289142,sid185_gci1345047,00.html.

3. Jim Bruene, “PocketSmith and Cashflow Insite are Newest

Online PFMs,” www.netbanker.com/2009/08/pocketsmith_

and_cashflow_insite_are_newest_online_pfms.html.

4. Michael Treacy and Fred Wiersema, “Discipline of Market

Leaders: Three Fundamental Business Strategies,” www.business-

wisdom.com/articles/ArtclDisciplineOfMarket.html.

5. Jennifer Saranow Schultz, “The Least-Trusted Banks

in America,” bucks.blogs.nytimes.com/2010/02/03/

the-least-trusted-banks-in-america.

6. Bill Doyle, “Customer Advocacy: The Secret to Loyal Finan-

cial Services Customers,” www.forrester.com/rb/Research/

customer_advocacy_secret_to_loyal_financial_services/q/

id/35057/t/2.

7. Paul Hagen, “Customer Experience Trends: Leaders at FedEx,

Time Warner Cable, and USAA Weigh In,” www.forrester.com/

rb/Research/customer_experience_trends_leaders_at_fedex_

time/q/id/57479/t/2.

Endnotes




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the future of member-facing technologies in credit unions

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