‘Where there’s trust, there’s loyalty’

Digital banking is evolving with consumer expectations, say experts from PSCU’s Lumin Digital.

Consumers are increasingly buying products or services; they are buying experiences, explains Jeff Chambers, Lumin Digital president.  “Fifteen years ago, we would buy a CD or a book,” says Chambers, who spoke during a breakout session at the PSCU Member Forum in Austin, Texas, Wednesday. “Technology has shifted to digital. Today we buy monthly subscriptions and ride sharing. We are using technology at a scale that is unprecedented. For digital banking that means your members' mindset is in that experience mode.”

Consumers also want their experience to be personalized, Chambers says. In many ways cultural changes have made our lives less personal. We are less likely to know the clerk at the grocery store or the person who delivers our mail. At the same time, digital delivers very personalized experiences.

“When the experience is personalized, with suggestions like Amazon or Netflix, we feel connected,” Chambers says. “There’s trust, and where there’s trust, there’s loyalty.”

Research shows 75% of consumer interactions with financial institutions are through the digital channel, Chambers says. At the same time, some types of transactions remain firmly entrenched in the branch environment, according to Javelin. For example, 64% of accounts are still opened in branches, and 60% of deposits are opened in branches.

“Two things are going on here,” Chambers says. “No. 1, people still like that physical channel, and No.2, we can probably do a better job of some things digitally. We want to integrate that channel better.”

Chambers and Brian McNutt, Lumin vice president of product management and strategy, demonstrated how PSCU is working to provide a more integrated experienced with Lumin Digital by integrating a streamlined account opening process as well as credit scoring, bill pay and financial wellness applications—all of which are powered by predictive analytics.

“These are engaging features that turn digital banking into a habitual product that says credit unions aren’t just selling products, they’re making their members' lives better,” McNutt says. “That creates a sense of trust and builds an emotional connection with members.”

PSCU is a CUNA associate business member at the premier level.