FICO’s consumer research shows that millennials are more likely to switch financial institutions than other generational groups, and the perception of high fees is driving them to leave. These interviews with millennials highlights that frustration with fees.
Credit unions have recognized this opportunity and are capitalizing on the discontent. Credit union membership is growing; credit union savings balances hit one trillion in March, the first time in credit union history; and credit union loan portfolios increased 10.6% in the past 12 months, the fastest pace since 2005. (CUNA Mutual Credit Trends Report, May 2015).
Every day, credit unions are working harder to please their members. But responding to member needs, plus business and regulatory changes, requires agility. Perhaps more than current credit union service organization (CUSO) systems provide.
All too often, we here at FICO encounter credit unions using origination systems that are hampering growth and delivering a sub-optimal member experience. Those systems often limit an institution in the following ways:
- Charges to change any strategy decisions
- Weeks or months of wait time for strategy or system changes to be made
- Too many global settings and too few segment- or product-level settings
- Implement new products or make changes to existing ones in days, not months
- Allow business users to easily modify minimum credit scores and credit criteria, and add new products or product terms
- Take advantage of pre-built reporting and easy customization to see results end-to-end
- Leverage champion/challenger testing and strategy simulations
- Connect quickly and easily to new external or internal data sources
- Employ pre-built interfaces to major credit reporting agencies
- Use role-based access controls to limit who can see and modify data