POPi/o: Three Key Trends Credit Unions Need to Know for 2020
The Strategic Link partner dives into video conferencing and how it can positively impact your credit union’s bottom line.
Since launching its secure video conferencing platform in 2007, Strategic Link business partner, POPi/o, has excelled at bringing innovation to the table.
Today, the company continues to transform as it follows economic indicators, such as consumer spending, interest rates, and GDP growth, converting that expertise into robust services for credit unions.
POPi/o stays current with financial developments and presents a case for credit unions to offer customer-centric technology to their members, said Vice President of Strategic Resources, Jason Smith.
“We’re pleased to partner with a cutting-edge company like POPi/o. They’re providing our member credit unions with secure, innovative video conferencing – something all credit unions need in today’s high-tech operating world,” said Smith.
POPi/o understands that credit union leaders are expected to make the most of every budget dollar. That means doing more than just launching new products, upgrading technology, and achieving sales goals.
Credit union leaders understand how economic, technological, and regulatory trends not only impact their ability to serve customers, they also know what affects the rest of their operations.
The following three trends will impact not only the technology, call centers, and marketing departments, but credit unions overall.
1. Uncertain Economy in the Second Half of 2020
More than two-thirds (67 percent) of all CFOs in the U.S. are predicting the economy will fall into a recession in the second half of 2020, according to a recent Duke University/CFO Global Business Outlook survey.
It’s a prediction, but if a recession does occur, it may not be all bad news for credit unions. As recessions hit, many large financial institutions tighten credit, meaning that customers will turn to their local credit unions for loans.
POPi/o can help credit unions as many of these customers—think potential members—will require more face-to-face transactions. Video banking is an ideal channel to meet that need because it offers a chance for applicants to discuss credit history, as well as a way to upload supporting documents.
2. Centralized Lending will Gain Steam
In the not-too-distant past, most branches had a loan officer—a great strategy until online and mobile loan applications became commonplace. According to The Financial Brand, branch visits are projected to decline 36 percent through 2022.
Digital loan processing results in a more efficient, productive, and profitable lending department. With centralized lending, credit unions can update members via email or text on the approval status and members can easily upload supporting documents. Video banking can help by being a key component of a centralized lending strategy.
3. Community Financial Institution Relevancy will Be Tested
When regulators responded to significant losses during the financial crises with more restrictive rules, opportunities emerged for non-bank and non-credit union firms to increase lending. Now they account for 58 percent of outstanding non-mortgage consumer loans, but the human element of customer service is missing.
Customers want to interact with their credit union in a personalized, face-to-face way, but to remain relevant in today’s digital, non–bank/non-credit union competitive landscape, that service must be convenient and available via digital channels.
Relevance also means making an emotional connection with your customers. POPi/o has pioneered the ability to track your customers’ satisfaction using cutting edge facial recognition software during video calls.
The message is clear: Credit unions must invest in technology and digital delivery. In 2020, credit unions will need to find providers that can complete installations quickly, require the least amount of staff training, and deliver strong ROI.