Welcome to Loquat Insights – the video series bringing you direct perspectives from our leadership team on key challenges, exciting opportunities, and innovation shaping the future of banking.
Hello everyone. I’m John Gernhauser, and welcome to Loquat insights.
Q: What major trends are shaping the future of banking and credit unions today?
John: The financial services industry is experiencing a bit of a shift from more transactional sessions to more experience-driven expectations. Now, when someone compares the experience they have digitally with your bank or credit union, they’re not just comparing it to other financial institutions.
This might be a little bit of an overused analogy, but they’re comparing it to digital leaders that they utilize in their everyday lives. Amazon, Uber, Netflix, it’s immediate, it’s easy, it’s frictionless. I might be a little bit biased, but in my opinion, if I click a button on your website that says open an account and I’m taken to a form, it’s kind of like if I click the movie title I want to watch and I’m told my DVD will be arriving in the next several days.
However, we need to realize that there’s still operational pressure, staffing constraints, regulatory complexity, and the need to modernize without disrupting service.
Q: What do you say to those banks and credit unions who say they want to provide white glove treatment to customers, and say digital interactions do not meet the mark?
John: Most banks and credit unions are not looking to replace human interactions, but they need technology to support their staff, streamline their work, and improve consistency. People, let’s not forget that business owners are people, will gravitate to the channel that allows them to accomplish the task at hand in the most effective and efficient way. They’ll go to a branch if they don’t feel comfortable proceeding digitally. They’ll go to a branch if they want a little extra assistance. That should be their choice and not your mandate.
A colleague recently told me that he opened a business account at a mega bank you’ve probably heard of. To be kind, the experience was not great, and he asked why do I need to come to a branch for this? And the answer was well, we track which relationship managers open the most accounts. Two things come to mind there, the first, the old adage in business don’t make your problems my problems and the second, I’m sure that could be tracked just as easy in the digital channel. There’s simply too many options for potential customers and members that are frictionless, easy, instantaneous.
Just remember your branch hours are also their money-making hours.
Q: What do you say if someone is concerned, they will be inundated with fraud if they move to digital account opening for businesses?
John: Customers and members expect quick access to funds and a frictionless experience, but they also expect protection. Striking that balance requires intelligent alerts that minimize false positives, clear communication between the frontline staff and the fraud teams, streamline decisioning workflows with the best fraud tools, and fast resolution paths if something does go wrong.
By using automated embedded KYC and KYB tools, you can discourage fraudsters in a more explainable and repeatable way while opening the door to your institution for those who you would like to serve. The right technology partner can help.
In our next episode, our Chief Product Delivery Officer, Chris Cochran, will share some insights into what makes a successful implementation.
Thank you for watching. Join us for the next Loquat insights.
