“The world has changed dramatically in the last six months and member needs have changed along with it.” This was the opening statement from Scott Harkey, Chief Strategy Officer and Head of Payments at Levvel during SherpaFUSE. Scott’s session explored three key trends, as well as the transformational factors in each trend, shaping member behavior. He also offered best practices on what organizations can do to embrace the “new norm.”
In the New Shape of the Credit Union Member, Scott provided details related to reductions in spending and eCommerce activity, and he reviewed the significant spike in member-savings habits. Consumer savings spiked to a record 33% savings rate in April, with high-income Americans accounting for most of the increase. Information related to the usage of the stimulus checks was also reviewed, indicating that upper-income families indicated savings rates of three times as much as lower-income families. Scott also discussed significant changes in fraud, which have increased in all categories. A recent ACFE survey reflected the spike in fraud activity, with 77% of the respondents stating they observed an increase in fraud and 92% expecting an increased in fraud over the next 12 months.
The New Normal for Financial Services,
Onboarding in a Digital World. Scott discussed the critical components of onboarding a new member and reinforced the need to leverage tools for simplifying and expediting the digital onboarding process. Scott provided an example of a top U.S. bank who witnessed a 50% increase in digital onboarding during the pandemic, and now up to 40% of the new accounts are opened digitally. An additional item noted from a recent Digital Banking Report is 77% of people reported the account opening process can “make or break” their future relationship with a brand.
Designing for the Future. Scott addressed the re-prioritization of IT spending toward digital banking, online account opening, and online lending. The revisions to IT architecture will create the level of flexibility needed to compete with larger financial Institutions and fintech providers, but Scott also indicated the need to review internal processes that would create unnecessary friction in providing a superior member experience. Scott also noted the importance of fintech partnerships and collaboration, and the value Sherpa Technologies provides to credit unions through fintech engagement and enablement.
To learn additional information regarding proposed areas of focus, including embracing digital, developing personal relationships in a digital world, finding opportunities in small business, and pursuing collaboration and partnerships, watch Scott Harkey’s full presentation.