Resources > Data Jam Sessions and Podcasts > Data Jam Session #1: Using Your Data for a Competitive Edge

Data Jam Session #1: Using Your Data for a Competitive Edge

December 16, 2021 by Segmint


Watch the full stream on YouTube by clicking the image above.
Original Live Stream Date: December 7, 2021

Full Transcript Below

Kent Blacksher  0:11  
Alright, let's get started. Hey, everybody. This is Ken Blackshear I am your friendly moderator live today on what is clearly going to be an exciting Data Jam Session. You may be asking yourself, what is a Data Jam? Well, let's be frank. Here. It is a discussion of some of the sharpest minds in the credit union a data and analytics space in and around the use cases that are impacting all of you each and every day. And really, so you guys can get some insight as to what you may want to glean and your strategic planning for the next couple of years. That's really what the Data Jam is all about. Getting some ideas from some like minded individuals who are in the space and in the trenches, so to speak each and every day. So again, we're live. I'm Ken Blanchard, VP of bizdev, at segment, and let me talk to you a little bit about our panelists today, starting with the chief financial officer from Elga credit union, Dave Brandt. Dave, a pleasure to have you with us today.

Dave Brandt  1:09  
Thank you, Ken. I'm excited to be here.

Kent Blacksher  1:13  
Excellent. Also joining us, the VP of marketing and business development from Randolph Brooks none other than Blake Lyons. Blake, good to see you. Thanks again. And we'd be remiss if we didn't mention the vice president, President of Marketing and member experience from bank friend, staff, Federal Credit Union, no, none other than Maria Pena Garcia. Lopez, Maria, a pleasure to have you today.

Blake Lyons  1:39  
Thank you, Ken. Pleasure to be here.

Kent Blacksher  1:43  
And joining in from our side from the segment team is none other than our one of our co founders, and generally one of the brightest guys in the industry. But we don't like to tell him that because we don't want to go to get inflated. Our own Rob Heizer. Rob the pleasure

Rob Heiser  1:58  
of mine, Ken, thank you.

Kent Blacksher  2:01  
And finally, last, but certainly not least, our very own VP of data and analytics Mark layer, who is probably still a bit tired from recently completing. Was it the Boston Marathon Mark?

Mark Leher  2:14  
Yeah, it was it was the Boston Marathon. Happy to be here again.

Kent Blacksher  2:19  
Great, I just did five miles this morning. No, mind you, it was behind the wheel of a car to and from Starbucks. But we all have to start somewhere. So as I mentioned, what we had planned on doing today in this Data Jam is to really talk industry issues, talk about how you guys might be using data to solve what has really been a trying year, and what may tend to be a bit of a trying time, as you think of the really robust competitive landscape and how things are progressing, really want to talk about your data driven strategies? And let's talk some tactics. Let's nail down. What are we doing from a digital channel spend scenario? What are you guys doing for some really significant issues like combating attrition, which we know is paramount right now, with with the changing landscape? And then ultimately, just from a competitive standpoint, what are you doing to kind of blunt the competitive trends in the industry and ways you are creatively leveraging data to get around that? So with that being said, let's go ahead and jump in. If you don't mind, Maria, I'm gonna pick on you virtually to get us started. And really want to talk about the way we think about optimizing really member engagement in light of how the industry is trending right now. We're hearing from analysts, so lent being one of them, they're predicting that financial institutions are really going to have to continue to improve their infrastructure, they're looking to have to make changes to the way they engage with their members, right? So how are you planning to enhance what we will generally call customer or member engagement strategies going into 2022?

Maria Eugenia Garcia-Lopez  3:50  
Thank you, again, I will be happy to share several innovates that we have planned for 2022. And that's why when we one of our goals for this year was to really have the predictive analytics platform in place. And I'll tell you a little bit why. The first thing is the global rewards we are launching on January 1, and you very powerful member engagement, but also cross selling tool, which is a global rewards program is a total relationship rewards program that seeks to reward members, and not only depositors, but also borrowers. And that's one of the tools that we strongly believe were extremely exciting, and we strongly believe that that will drive engagement. Another initiative is we are implementing with segment their attrition model. We really we serve a close community. And we believe that we need to keep making efforts towards acquiring new members but all should also really identifying proactively those relationships that are tearing before it's too late. Late. So we're looking forward to have that in place early next year, and really come up with that marketing plan in terms of, you know, our reach marketing campaigns. The other thing is, based on how our members behavior change during the pandemic, we are constantly receiving feedback. And we are adapting the way we're doing business and the way we're interacting with our members. So another example is video appointment, we're working with one of our vendors to really launch video appointments we we've been offering since the onset of the pandemic, you know, telephone appointments, walk ins, and even appointments in person. But right now we want to take it, we have members overseas, so we want to make sure that we have better interactions. And so we we really think that video appointments will be a great tool to have.

Kent Blacksher  5:58  
Excellent, I appreciate that. That's awesome. I love hearing the juxtaposition of using some of the new platforms talking about video appointments. And I'm curious, and we'll talk about probably a little bit later how you think that may develop, you know, kind of, as we think maybe post pandemic or endemic if you think that's going to be a trend that continually gets added up? Or do you think people go back to their their native kind of approach, but we'd love to hear from Blake and Dave in and around the same thing? How do you see the Engagement Roadmap leading into next year, so pertains to your particular institutions?

Blake Lyons  6:32  
Yeah, can't you know, I think, if I could use one word to describe kind of how this is all going to come together, it's a very fitting word of convergence. It's convergence of several factors and fields that are that are in our enterprise, that are going to set us up for for success and better engagement with our membership. So what are those areas? Right? Well, first, I think it's the voice of the member. And so however, your credit unions doing this, whether it's surveys, you know, mining, social media, comments, things like that, you know, getting the voice of the member in identifying trends within their feedback. So that can really be leveraged towards, you know, where are the pain points and processes that we have? What are they asking for, from a, you know, r&d standpoint. And then from there, I think to the second kind of field where that needs this, this convergence in is on data management. And so we have at our disposal, all these disparate systems, and all these systems have different types of information inside of them. So can you can you develop a single platform, ie, like a data warehouse that you can house all of that disparate information in, that's going to give you really a whole kind of 360 view of your membership. And then you're able to take that standardized disparate data, and feed programs and systems like predictive analytics. You know, the third part of this that I want to touch on is is embracing UX and UI, embracing that philosophy of, of identifying that doesn't work, the old mentality of does it work, yes or no, we can't live by that standard anymore. We have, we have to look at everything throughout all of our processes. And look at how we can continue to refine those. And I think the convergence of those those areas, leads to a process improvement mentality that will continue to maintain relevancy for us as an industry.

Kent Blacksher  8:54  
Blackberry, exactly. Go ahead. Oh, no, you're good. Dave. I was I was just agreeing, please jump in.

Dave Brandt  9:04  
Yeah, I've that convergence means so much to me, because I keep looking, I hear there's a data lake somewhere and I see a bunch of ponds and the trails between the kind of there before we get that in the lake good, make a lot of things better. And I think what I what I consider engagement, it's beyond the knowing the data and knowing what the member might want. But trying to personalize that through an impersonal channel. I used to be able to look at someone's keychain and and know that they had a dog at home because there was a picture of it when they stood at my teller window. My teller transactions are down 15 20%. But my online interactions are up 50%. So I somehow have to know that the key ally for going to the local pet store, match together with a membership at a dog park to gets me a dog and then deliver that message as a personalization through what's in your hand. And those are the things that We really hope to start we'll do a better job with data.

Kent Blacksher  10:07  
You nailed it, right? It's taking a an impersonal channel and trying to make it personal. Mark, I'd like your take here to write as someone who's constantly looking at the data in and around this. And collectively, I mean, we're talking to individuals that are dealing with this on the front line. But what are we seeing from an industry standpoint, as it pertains to this looking at 2022? And behind and beyond? I should say, What do you think the engagement play is going to look like?

Mark Leher  10:37  
I think it's exactly what everyone here is that it's understanding that channels that customers are engaging in and the changes in those channels is one things that we can anticipate how to best engage those customers or those members moving forward. It's certainly the personalization piece. So I really like Dave, what you said about understanding that someone loves cats or someone loves golf. And those are insights that used to come from a conversation, but now need to come from looking at the transactions or where they're spending the money. And then the last piece is really bringing all those signals into one place. So the, to build on the example of the surveys or getting the member feedback from social media. Those are things where people are saying what they might be interested in, and what they're what, how they like their, their financial institution to treat them. But then we can go look at the transactions and see some other data fields and do some cross validation there. For example, if someone's upset with your institution, and they've just made a trial deposit at Robin Hood, or at another institution that's building on that signal that tells you or if they're saying they'd like to see another feature, and they're engaging with a FinTech, who's offering free credit scores, maybe as a, for example, that's another strong feature that tells you, hey, this is something that our members or customers really are interested in. So certainly, the injecting a Data Fabric can really give you signals to better inform the type of engagements you use with your members.

Kent Blacksher  12:17  
That's, it's perfect. And actually, I want to piggyback on on Dave personalization message, you know, because the tying that into what we're hearing, you know, from analysts, as well as when you think about customer engagement, right now, when you think of the way that it's kind of framed up, we are seeing more of a trend towards institutions complementing their digital channels with human assistance, you know, not just looking at say, you know, just AI or machine learning, which don't get me wrong or buzzwords. But really, how do we see that right now? How do we see for example, institutions offering prompts to their teller, so they have more informed interactions with account holders in the moment? That's the kind of human interaction that I'm curious to. Because I think, you know, like Dave said, taking an impersonal channel and trying to make it personal, really starts to lend itself to more human face to face interactions, that human elements really crucial right now. I'm going to talk I'm going to start with you, Rob, because we didn't get you on this last little nugget, really curious, on your take. How do you think that the ways the FIS are going to change progress in this area tying in the human element amidst all this data and in personalization?

Rob Heiser  13:31  
Sure. Well, I think that I think there's a couple of things I'd like to talk about, I think one of the things that's important is that, you know, what Mark was talking about, it's kind of the fabric and the foundation of data. I do think, you know, after now living almost two years in a pandemic, and I don't know what version of the pandemic we're on or what variant we're on at this point. But I do, I do think that what we're seeing and hearing is that I think personalization is important, but I also think people want to get personal again, you know, and I think, you know, the, the rise of both, you know, offense, but even interpersonal interaction is important. And I think that that is important, you know, Blake talks about this 360 degree view of the customer. And it's important to kind of not only understand the customer and, and push that to the channel, that that's important. But you know, I think the, it's even, I think it critical at this point to really enhance CRM, right? If, if you're not, if you have the data and you're not pushing it to the people who need the data, right, that understand the interaction they want to have, you need to do that you need to inform and enlighten that CRM tool with every every possible piece of information you have. So then you do know they have a dog or they take, you know, there's a there's a dog park right now, or they have a member of the dog park and I think that's super critical. I think 2022 really is you know, kind of not just personalization, but get personal again, and get, you know? And yes, of course, I think tellers always going to kind of shrink. I think that's part of the the industry is that you don't have to transact. But I think the important transactions and the important things, the important decisions in life, they do want that personal interaction, and they do want you to know who you are, the customers want them in the financial institution to know, you know, they want the members to know that their, their credit union understands them, and and that they can best serve them.

Kent Blacksher  15:29  
Excellent. Let's start with with Blake in and around that would love to get your take on on just that the human touch, complementing digital channels. And then if Dave and Maria would love your feedback, as well, as you think of your roadmap, where are your thoughts in and around that?

Blake Lyons  15:46  
Sure, yeah, Thanks, Ken. You know, I, when I think about personal touch, it's funny how maybe something that I thought might have been, you know, kind of trivial, you know, several years ago, might have a really big impact today, as people are walking back into like brick and mortar, or calling, you know, into a call center. And, you know, something as simple as having the employee tell the member be prompted to tell the member? Hey, you know, I see you're celebrating your, your one year anniversary with the credit union, or five year anniversary of the credit union, you know, thank you for being a member. You know, I think now that that, that resonates so much more, as we're in this kind of new normal, and it's, it's nothing, you know, it's nothing revolutionary, it's nothing, just that's a total breakthrough, but it's, I think it's the courtesy, and the sentiment that are kind of are the pillars of our industry are built on, that really hits home, you know, when we're looking at at, you know, personalizing in these non personal channels, you know, using tools to understand, you know, hey, with, you know, like predictive analytics, knowing that people have these interests in how can we communicate to them based on their interest? So, you know, if I am a coffee drinker, you know, Have you have you set up card on file with your favorite coffee app, things like that, you know, how can we talk about the security and in how, you know, that experience can be much more easy and rewarding if you do something like that. But then, you know, looking to how do you have actually someone who is a live human being working with people in these non personal channels? You know, we we've been using chat for years, and I think it's only becoming more and more robust, especially as we went into the pandemic, and are continuing to, to weather the storm, you know, having that virtual chat plugged in to certain key points, processes, like applications, what, what have you, and having people ask for help on the fly during these processes, you know, can add that personal touch, they're not talking to a bot, they're talking to a real person who can identify what, what they're looking for, what their problem might be, and hopefully get them through that funnel with more ease. So that's kind of where we're focused. And some of the things that we're, you know, tooling around with here to kind of make those person in personal channels a little more personal.

Mark Leher  18:32  
I like that. You mentioned that that chat experience too, and not using a chat bot. That's a great opportunity, even just having to tie in with Rob's point about the CRM in the chat saying something about the member, maybe it's their tenure, maybe it's their interest, that gives them a signal that they are actually talking with a human being that goes goes a long way. As opposed to a chatbot. Which people may roll their eyes up.

Blake Lyons  18:57  
Yeah, I mean, I think there's a there's a use case for that for sure. But the time in a place has to be appropriate. Right? Yeah. Correct.

Kent Blacksher  19:07  
Then, let me turn it over to Dave, then same question. What are your plans in and around this on complementing your digital channels, kind of with that human touch and then Maria would love your feedback as well after Dave.

Dave Brandt  19:19  
One thing that kind of jumped out at

me about this is we spent the last year our big biggest goal all year was improving a net promoter score. And it was great. We started doing research and we started seeing where competitors were there. We looked at our number one, oh, we got to improve that. How are we gonna improve so much over there? Then we started thinking so much about where our channels have moved to. And, you know, even I sometimes get frustrated at why can't I change my password? It's not that hard. So we've taken in all the questions that come in through the whether they come in to the teller line, whether they come in through our call center we call the heartbeat hub or through chat, and just keep measuring what are our top questions What are our top questions and develop How To videos. So the next time I can not only talk you through it or show you how to do it on your device, I can also show you how to refresh that memory. So when my mom calls for the fifth time and asks that question, we can explain that this is how you open email. It's, it's really seemed to go well with that engagement. I think we have 12 Each on our online and mobile channels at this point. And that is kind of bringing that human touch back because it's not just a well, here's how you do it go away. It's here's how you do it. Here's where you can find the answer next time. And then a buy in, do you understand what we're doing here? Although I will say it's really interesting when you suddenly read an email about a new process change, and you realize that three videos just blew up. You get too flexible on the fly for them.

Rob Heiser  20:52  
I, I really want to I really want to dig deep. I want to dig deep on this, this solution to answer your mom's technical questions, because I do get those. I love my mom dearly. It's a great question, I want to

Dave Brandt  21:14  
use video of you explaining the answer to you to around the idea there. So it says

Rob Heiser  21:20  
I'm just gonna start recording my answer and text it to it. That's a great idea.

Kent Blacksher  21:27  
You guys are too much. Maria would love to hear how you would specifically at bank funds staff or are tying in the human element as it pertains to engagement?

Maria Eugenia Garcia-Lopez  21:39  
Well, as a federal credit union, for us, it's, it's the height, the personal touches is extremely important, especially with the community that we serve. And we have about 40% of our members across the world. So I really I smile when Blake made that comment about those tiny things that are not innovative. But it might be that simple message, that warm message about someone's anniversary or something else. And I think that UNASUR an example I think at the end of the day, what it's really important is really develop a digital engagement strategy from the retail side, from the communication perspective of the call center, in our case, from the lending perspective, from the, from the marketing perspective, as well, because one of our, you know, core goal is to really become the digital first trade union. And we've been heavily investing in data analytics, but also in technology. And I think that what that requires to keep that engagement that we're discussing, is two key things. The first one is how, especially right now, with everything that we went through through the pandemic, how do you keep your employees engage? And how do you keep your employees adapting to those interactions through digital channels with that personal patch? So a couple of things that we have done is one of the first thing is we always try to keep that balance, right. For example, we for the last two years, we're constantly monitoring the hurricanes, for example. And we sent just a very simple warm email to those members that might be impacted in that area. And it's unbelievable, because like Lake said, we start getting, you know, an influx of email saying thank you, and it's just we're monitoring the hurt hurricane, we're here to help you. It's as simple as a few words. So we've been doing that. On the other hand, we we have an internal internal service Taskforce. And we have representation from all our key business areas. We have defined KPIs, you know, around net promoter scores, service levels, from our transactional surveys. And we're constantly monitoring empower our managers, especially from the frontline teams, to really hear that feedback to you know, find solutions for those things that we can and in a prompt manner, but also one of the latest tactics is we don't want to just reach out to those members that gave us poor ratings. We want to reach out to everybody those members that have really good ratings, neutral members in those members that you know, are not satisfied. So we are also really developing CRM, that's another area we we have made a lot of progress, how we share the information With an all our marketing initiatives, business development initiatives with our frontline teams, but we definitely need a CRM so that they have the tools and the 360 degree view from the members to have those successful cross selling interactions. One of the things that we tell our staff constantly in every single meeting is that every single interaction counts. And for us to keep up the service levels that we envision for our institution, you know, we want 95 or above member satisfaction, we need to make sure that we have a wow, service experiencing every interaction takes every single, you know, membrane interaction again, so. So some, those are some of the focuses and initiatives that we have underway.

Mark Leher  25:56  
I like that, I like that you mentioned your remote.

Kent Blacksher  26:00  
Go ahead. Good.

Mark Leher  26:01  
Sorry. Can I just Marie, I like that. You mentioned your your employees. Because it everyone who's worked with a customer knows that it feels good to have a positive experience with the customer. Data is really arming them. It's like providing a scouting report on each member of what's what is what's going to work, what's going to delight that member, or what issues do you need to address so that I, I'm just reflecting I often think about it from the member perspective. But imagine how great it is for the employees, for your team to have this information for them.

Maria Eugenia Garcia-Lopez  26:35  
And we cannot I agree with you 100%. And we cannot forget about our employees, because as we're introducing new tools, new data, things to predictive analytics, we're becoming more and more aggressive with our marketing efforts. Last year, we have done you know, for 60 campaigns, it's been a record. And that requires more training, what type of tools they need, you know, when they have those videos, appointments, or those phone appointments, which are different interactions, it's a new way to interact with our members and meet their needs. So I think that, again, if our employees are not engaged, if our employees don't feel confident having those interactions having the right tools in front of them, then we're not going to be able to improve or drive the type of engagement levels that we want from our members.

Rob Heiser  27:30  
I also like the fact that you talk about not just the members who are who are upset. But the but but serving everyone, you know, with with the best quality service and and doing that across the member base. I think that's that's it's great. And, and leveraging data to do that is is obviously critical. And it sounds like you did that you said you ran 60 campaigns last year. That's that's phenomenal. Congratulations. Thank you, I'm sure with with great results. Right. And and both on the satisfaction but also on the on a growth for for the credit union perspective.

Maria Eugenia Garcia-Lopez  28:04  
Yes, it is a team effort. And we did. And we are, you know, one of the things that are we're extremely excited. It's again, that predictive analytics platform with segment, what we envision is how can we not only analyze the data more efficiently, but how can we I shared this when we went through the implementation, which we completed this year. And we launched segment in June of this year. And I said I want my team to move faster. And that's an area where we need to improve, how can we analyze identify an opportunity and move from that data analysis into an action plan? How can we move really fast, and it happens that at least in our case, in the past, that sometimes we identify really good opportunities. But the data analysis, it was so effective, that by the time we wanted to put an action around that opportunity was too late. Yeah. So. So we're very excited about segment and being able to launch more campaigns more efficiently. And the campaigns have been extremely successful. We exceeded the goals that we set for this year. So yep, I know. We're proud

Kent Blacksher  29:25  
to hear that. Love to hear that. And that's actually a perfect segue. I'd love to transition a little bit to the get the brainpower of this group in and around some tactics now would love to know a little bit more. I mean, we've talked a lot about disruption, right? We've talked about pandemic, we've talked about personalization, but I really want to get into some specific use cases or scenarios. So I'm gonna flip it to Dave, because you and I had had a discussion about this recently. You know, I'd love you to, to share a little bit about the way you know, you're handling this at Elga. Specifically, we were talking about inflation, which is now you know, greater than mortgage rates, right? How are you specifically preparing for this trend? And how do you see it impacting, say lending

Dave Brandt  30:13  
have a mixed blessing. You know, you think back to the last time inflation was higher than third year mortgages, it was, like 1980 or so. And fifth grade, we didn't seem to care much about that. But today, all of a sudden, guess liens approaching $4 A gallon again. And I care about that. I want to buy a vehicle and my use vehicle prices are up 40% year over year, and I care a lot about that. At the same time, my wages really haven't gone up quite so much. So it really has become a bit more of a challenge. Some of the opportunities we've seen in lending center around Leeson buyouts, I can tell you personally, my wife's truck just came up for lease end, and the buyout was somewhere around 75% of value. So great opportunities for our members to be obtaining what now suddenly became an affordable vehicle. Yeah, we're also really having to pay attention in care, there are 10 to 12 vehicles right now that three years old, are worth more than they were MSRP. I'd like to think that's just buying correctly, and you pick the one that's going to appreciate in value, it's something tells me three years from now, that might not be the same thing I see. So being really careful about what position we put the credit union risk in all day long, we want to make good loans for our members. But we have to also understand their ability to come through with that in the end. And a lot of goes back to how our members feel. When gas is $1.49 a gallon. I don't care if my car runs on, you know, if it's two gallons per mile, I just want one. And then somewhere around three to $4, I start to think about it. And if we get north of $4 a gallon, suddenly that giant and I'm in Flint, Michigan, that giant GMC, V 10, going down the road toe and everything I could ever imagine, I have to park because I can't afford to put gas in it anymore. So as a lending strategy, we have to be really conscious of where that is. And when the the switch flips, what are our members going to want? How do we help them find that next answer in their car loan. On the mortgage front, it's even more interesting. Right now, as a borrower, I should mortgage to the hilt in theory, because the dollars I'm borrowing today are going to be worth so much more than the dollars I pay back with 20 years from now, if inflation remains this high. The one caution that we see though is while inflation is currently measuring very high, the bond market is not participating with that view. So we don't know that this inflation is going to last a real long time. So again, it comes back around to being able to work with our members and share that education. It might be a great time to buy this house. But please don't expect it to be worth $10,000 More by the time we get done closing, it's probably not the likely case. After that, it becomes balance sheet management. No one really wants to talk about that except for maybe me. So the next topic is there.

Rob Heiser  33:25  
There's a couple of interesting things. Obviously, we've talked about Ken brought up inflation grid of the mortgage, when's the last time maybe in US history that a depreciation depreciating asset classes now appreciating? Right? Like it's probably been, especially at the just because of the supply shortages. But you make a great point you're in Michigan, the trickle down of a $4 $4 in gas is not just the, you know, the car manufacturers but you think about all the kind of the next generation the door Dashers the Uber drivers, you know, at what point does it not make sense to, you know, to, to drive that income for your family and do something different? And so it's definitely an interesting time with a lot of a lot of decision makers that that that inflation versus mortgage rates, that seems like a great time to buy to buy a home, right?

Kent Blacksher  34:28  
It does it is it is crazy. And I'm speaking from experience now as I'm trying not to have traumatic flashbacks that someone had to buy two vehicles in the past year and then my, my college age son, his college get around car literally just died last week. So I was in the momentarily excited position of getting rid of it, what we'll call a deceased car for a ridiculous price that you never thought but now I'm in the unenviable realm of trying to find a replacement vehicle for him that's not outrageously priced. But I want to turn that same type of have, you know accuracy over to? To Blake, we're talking specifically around this because we all know is we're kind of talking about supply chain and what's been going on with the pandemic and all of this new vehicle production clearly is, is a nightmare, and we understand the supply chain issues. But, Blake specifically, I know you've had some, some activity here, credit unions who are relying on that steady stream of auto lending are clearly struggling, how have you kind of pivoted that I'd love for viewers to get a feel for what you've been doing at Randolph Brooks, because I think that might be really beneficial to them.

Blake Lyons  35:37  
Right, Thanks, Ken. Um, you know, I think, you know, off the top, you know, auto lending is probably one of our tentpoles. Right, it's, it's something that, that we actively, you know, spend time energy in, you know, a significant advertising marketing budget on. And so I think, I think what happened was, you know, as a direct lender, you know, we try to keep things simple. And so, you know, whether you're buying new or used or refinancing, it's, it's the same rates at the same terms. There's no, there's no difference between new versus, you know, refinance versus us. So we try to keep it as simple as possible. But if I could harken back to the onset of the pandemic, which is this weird paradox, right? I don't know if you guys experienced this, either. But, you know, some days, it feels like it was yesterday, and then other days, it feels like dog years, like it was five years ago, where instead of person, yeah, it's just, it's crazy to reflect on it. But when, when the pandemic hit, I mean, I think we have to, we have to consider that we experienced something that was historical, in the sense that life was changing around the globe for everyone, on a daily basis, as more information became available. And so I can recall back when, when things like lockdown start happening, you know, central businesses were the only ones, you know, allowed to be open things like that, we were able to pivot very quickly, from kind of some of our bread and butter messaging, which is, you know, buying a new vehicle, here's, here's a great low rate, to maximizing a refinance opportunity. You know, being down with our membership primarily in Texas, you know, there's a lack of mass transit and in our infrastructure, most people have 124 vehicles sitting in their driveway. So there's something right there that you could, you could start saving money on, on a monthly basis. And the reason we switched that refinance message in that saved message was because people were scared. They didn't know if they were going to have a job when they woke up next day. And this was during that very turbulent time of when these lock downs were in place. And we were still trying to get our arms around around the pandemic. And so we're able to pivot very quickly to that. It's all stuff they can execute from home. And so we definitely pivoted all of our messaging to start leaning that way. And we thought it would, it would kind of come to the end as as maybe the pandemic came to an end. And granted, we're not at the end of the pandemic, but we're in a manageable spot. But we've kept the campaign going for refinance, because like you said, there's not a lot of inventory for new vehicles. So it definitely evolved into a campaign that was maybe supposed to be short term, and to a much longer term initiative. And it seems that that's a great opportunity. Because it's something it's an existing asset that people may not realize they can save money. And for some folks during this time, every penny counts.

Kent Blacksher  39:20  
That's, that's exactly right. And you bring up a very interesting use case that we see a lot on the segment side of the organization, which is how do we kind of get ahead of that? How can we understand what is coming next for individuals, right, particularly with what we'll call a big ticket item, like like a vehicle like in this landscape? Mark, I'd like to turn over to you as someone who, you know, delves in this cave all day long as it pertains to understanding buying patterns and transaction analytics. What are you seeing from our institutions in and around that kind of specific, you know, auto lending and that type of framework.

Mark Leher  39:59  
So I think The big play that we're seeing right now for lending is all around our cross sell predictive models. So Blake, your your point of things changed quite a bit two years ago, things are still changing we look I, I look at the data, how grocery spend is changing by local Buy now pay later there are all these trends and we're really going to emerge as a new normal versus, and it's going to depend on your specific institution, as we've already had conversations, it depends on where you are and who your membership are. So what we have developed, like I said, a canter, these cross sell models for mortgage for auto lending for other products, where we can take all the data that's flowing through an institution, turn them into our, our data labels or our key allies, and then generate an AI based predictive model based on an institution's own data to try to make predictions about who's going to be the best candidate for a mortgage, or who's going to be the best candidate for an auto loan. And that's all based on the data flowing through the institution. The other thing that I think is exciting in this world of constant change is we're actually able to retrain that model on a monthly basis. So it's always reflective of new things that my team of library scientists and economists are uncovering in the data and turning into key allies that may have predictive value for an institution to determine is this member the right target for an auto loan? Or is it a mortgage? Or is it a CD, whatever, whatever it might be? The leveraging that data to understand maybe what a member is going to do next, or what the next best product is, is really an important use of the data.

Kent Blacksher  41:47  
Love, love, love that. Couldn't agree more. That's one of the questions I see when I'm talking to our clients across the spectrum. All sizes, is kind of paying attention to that. How can we get ahead of that, like you talked about mark the predictive side of things. Dave, I want to transition to you in and around another specific kind of use case. With the influx when you think of, you know, we're talking about at the beginning of the pandemic and mid point when we were seeing that influx of cash from stimulus payments and and we've seen the major increase of the the Buy Now pay lending or pay later vendors, right? Are you struggling? Would you say you're struggling to kind of balance your deposits and lending ratios? And what kind of advice would you give those who are viewing? You know, who are in a similar boat?

Dave Brandt  42:38  
Yeah, I just think we're definitely struggling a little bit. Traditionally, other credit union was always well over 100% lent out, does the big joke occur, every exam was Well, would you bump the policy limit to this year. It at 80 to 83%. It's it's uncomfortable territory for us. But I really look at this as being a great opportunity. We didn't get an influx of deposits, because every institution got X dollars per member, we got a great influx of deposits, because our members view us as what I know, primary financial institution is supposed to be a thing of the past. But we clearly have their transaction account where their tax refund was going. So that gave us a great opportunity to look and see who are the people that trust us the most. And then from there that that data that key ally who's most likely to benefit from an auto refinance, who's most likely to be in the market for a new auto. Those things are something that we work hard on every day. I know a lot of my peers didn't pivot quite so quickly, when we were everybody was shut down to working from home. But our lenders did a great job, they picked up the phone and started calling people. And our loan production in 2020 was higher than 19 and 21 has been higher than than 20. So it helps with those vehicles coming up being worth twice as much. But honestly, it's it's knowing that we have that trust from the members. We can circle that back with our associates and show them this is how much your your members trust you. The credit union down the street grew 20% You grew 35% because these folks believe in you. And it's really helped us to continue growing loans. Now, we're gonna have the same challenge that everyone has his there's less loans to make overall. But I feel like by personalizing that experience and using the data, using the K li groups that segment provides us we can focus those activities for having greater results than we did in the past.

Kent Blacksher  44:48  
I love it. I love love to hear that. I'm going to shift gears a little bit because I know we have about 15 minutes left and I really want to get the panel's take On, really what's been a crazy competitive landscape pandemic, right? I mean, it used to be and I talked about this frequently used to be when you when you turned on, say, a football game or a sporting event you saw commercials for, I don't know, alcohol or some retail giant. And now it seems like we're inundated with competitors that didn't exist 234 years ago, right? We're talking about a massive shift in the competitive landscape. So I'll start with you, Maria would love your take, and Blake and Dave as well. Would love as we kind of shift gears here. What are you thinking about? From a share wallet standpoint? How are you pinpointing your, your competitors? And what are you thinking about that risk of attrition that's, that's really permeates all of this, right, because that's what it all boils down to isn't just maybe competitive blunting but really trying to mitigate that risk that that's prevalent of your member base with, again, threats that weren't necessarily around in some cases, even you know, a couple years ago. Maria, let's start with you would love would love your thoughts in and around this?

Maria Eugenia Garcia-Lopez  46:01  
Yes, of course. Well, um, you know, we we monitor I met imagine my peers, the sheriff wallet constantly, on a regular basis. And it's one of our key KPIs. And I think that there are several things that are very important to our institution. The first thing is that with predictive analytics, and all the data of book data that we are constantly analyzing, we're really trying to identify what type of off book relationship our members have versus beyond book relationship with us. The we have, we have very clear goals in terms of where we want to go. And that's one of the reasons why we have designed this total relationship rewards programs, because what we have found out is that there's a great opportunity, especially with young members, millennials and see, for example, and they are very profitable with our competition. So couple of things that we do, I think that it's all about data analytics, I mean, you have to be very, very proactive, you have to understand the trends, how our members have booked relationship changes. I think, again, the attrition model, this is something new for us. And I think that we need to be very proactive, and we need to make sure that we understand why those relationships are deteriorating, and what type of initiative tactics are we going to implement to be successful, and engage those relationships again, and avoid them from from closing those relationships with a career union? I think that I really think that with predictive analytics, we one of the things that we've been did this year is we are really leveraging the data, we are validating those targets. And we are increasing the number of prescreen target campaigns that we're launching per year. But the reason we're seeing even better results with all these pre screened campaigns that we organize with our crew with one of the credit bureaus is that we are leveraging our really one to one channels that we're using with predictive analytics. And we have seen really higher levels, higher results and more participation than before. So the I think that bottom line is really analyze the data, validate the data from all the sources that you have not just credit bureau data, which is limited to your membership base that has active relationship relationships with you. But again, rely more on those predictive analytics and KPIs. And I think it's it's sharing the share of wallet concept with your frontline team as well, with the tellers with the MSRs. The net promoter scores and the shared wallet concepts, concepts is something that you discuss constantly with your teams within management teams. But it's not a very easy concept to follow when you're in a tiller position or MSR. And that's something that we committed ourselves to have those conversations and really highlight how important it is for our employees, everybody to understand the share of wallet. So that's something that we also incorporate this year is to share those reports and share with them our off book versus our own book portfolio. So they get that engagement and that excitement, and they understand why we're doing so many initiatives towards improving that's your wallet.

Kent Blacksher  49:53  
Perfect I love to hear not just the fact that you're using the data but you really talked about validating it which I think is is crucial. I'm gonna turn it over to Blake now. And then Dave would love feedback in and around this. Oh, go ahead, Robert, when it back in them on the competitive landscape as well.

Rob Heiser  50:09  
Yeah, I just wanted to say what's what's great about Maria is doing is it's not just, you know, third party data from the credit bureaus, but really leveraging the transaction of first party data and validating it against each other, I think that it gives you and then focusing your effort, you know, who you're going after, and that correlation and mix of what you're doing to provide better results sense out of your campaigns. I think that's fantastic.

Maria Eugenia Garcia-Lopez  50:37  
Any time may add, I think that we all know very well, our members. And, you know, Blake said something about keeping things simple, right, you know, what incentives will drive that engagement from your members? And, and sometimes, you know, exactly, you know, in our case, like everybody else, competitive rates, especially mortgages and auto loans and personal loans, but what additional incentives can you offer, that would allow that member to really bring that business with you, and sometimes our green discounts, right, for green discounts on auto loans for those green cars that members might consider? Or whatever it is, but I think that it's always been creative, and adding additional discounts, additional benefits, that will make the construction easier and faster.

Kent Blacksher  51:32  
Makes sense? Like competitive landscape, and risk of attrition share wallet? How are you looking to tackle that? And 22?

Blake Lyons  51:41  
Yeah, you know, it's interesting, can I know, a loaded question? I know. Um, you know, I think I think all of us who have, you know, like a branch network, you know, that that traditional brick and mortar footprint, we may be tied to an FOMC. That is that's geographically based, you know, we look in the backyard, we look down the street to see who else has brick and mortar. And, of course, I would now even extend that, you know, in the last 1015 years to, to that being a virtual backyard, you know, who else is here a lot, you know, Ally Bank or some something, some entity like that. So, obviously, we look at that, and I think we try to figure out, are they or are they not a competitor? In, you know, what's powerful about, about a tool like predictive analytics is that I can now validate that, right? So I can remember many, many, many years ago, you know, us wanting to look at, you know, hey, can we provide a member better value? Can we recapture a loan from a higher rate competitor, and save that member money, but we need to know if that money is leaving our organization and going to that competitor? So how do we how do we have that conversation, that very relevant conversation of savings with a individual member who can reap those benefits? In the data, the data is there, the transactional data is there, we just couldn't get to it. So I think that speaks to kind of the power of a tool, you know, in, in continuing to grow your organizations are simple tools that allow you to quickly access information to make near real time, decisions to make to have near real time insights. So I think, I think it's a combination of looking at, again, who's in your backyard, and then actually bumping it up against transactional data and see who's who's paying these other entities out of their out of their account with your organization. But if I could kind of, I guess, get philosophical for a minute, if your worst humor me, you know, I look at competition in a very different light. You know, we talked about startups, disruptive, things like that, you know, 2030 years ago, as a financial institution, we wanted to offer everything under the sun. Now, what you have is, is this process mindset, where we have these companies, these these disruptors, I like to call them ala carte companies who take one thing that we do one thing that we do, and they do X the heck out of it, and then make it so easy for a consumer to do business with them, that it's kind of hard to walk away. Um, and so that's that's kind of where we look at the competition too, in the sense that, you know, we have all of these ala carte companies trying trying to, you know, pick us apart. And I think what we have to do to find nutrition is can is, as I said at the top of the meeting, have a process improvement mindset, embrace UX and UI Philosophy and make sure that we have a voice of the member and that we're listening and reacting accordingly. That's perfect. Agree more

Kent Blacksher  55:13  
particularly? Yeah,

Mark Leher  55:15  
go ahead, Mark. Sorry, I just I agree 100%, we see my team identify as all these new fintechs all the time with names crazy names like That's my favorite example. But people are paying them 295 a month for kind of wealth management, and it's really slick. And the, all these fintechs, they want to get the data that you have, that's part of kind of their internal value proposition what they want, but you've already got the data, it's the matter of doing, you've got the member, you've got the data, focus on the UX and the UI, and you can do the very same thing so that those members never leave. But it is an endless catalogue of different merchants that we see pop up in the

Rob Heiser  55:58  
data. Dave, is that is that your is that your startup? Dave?

Dave Brandt  56:04  
You know, I really wish it was. Unfortunately, no one pays me 295 a month for anything. But I do have a real quick story about the site, you know, that idea of identifying your competitors in some time, your competitors really aren't that fierce, but they can give you something that you can get back to your member. So we did a card study, and with the help of segment, and identified what cards were being used in our membership. When my lenders look at a credit report, they recognize Oh, there's a target card, there's a lowest card, and they'll try to pick those loans up or consolidate those debts. But looking at it at the macro level was so eye opening. We are a low income designated CDFI. And one of the top cards used in our membership is the Macy's card, not the store, I would have ever guessed that I'm going to see a bunch of so not only do I know that I can efficiently run a campaign to capture some some balance there because Macy's cards can be at 25 30% APR. But I also have something I can turn back around and make sure that I can give that as an incentive. Geez, your reward points can be used to turn in and get a Macy's gift card. Wouldn't that be wonderful. So we've got a set group of people there that we can grow that share a wallet, not because we're the better price, because we're the better relationship, and we happen to have a better price that goes right there with that UX that the Blake's talking about, I buy some loans on the secondary market from tech tech firms. And they charge way more than we would ever charge for these loans. But they provide a really slick interface that people like to punch a few buttons and be done with. So we have to develop develop that interface.

Rob Heiser  57:52  
But I think it comes back to people pay for convenience. Right. And, you know, I think, you know, giving the giving you and giving everyone access to data to help, you know, serve the customer and make it easy for them to do something. You know, people will will pay for that. I think that's that's and you see it I mean, look at look at stripe there 3% 2.99% On merchant fees, so square I mean, those are those are, those are, they're expensive, especially on debit, right?

Kent Blacksher  58:28  
Yeah, 100 100% You're exactly right. Hey, we're gonna do a quick lightning round before we let you all go at the top of the hour, as promised. So I'll pick and choose and we'll start with you, Maria 30 seconds or so. And we'll give everybody the same time. Where do you see that? Where do you see the credit union innovations coming in the next year or so what do you think is next in the landscape? And your time starts right now?

Maria Eugenia Garcia-Lopez  58:54  
I think I would say it's all about digital engagement. I think that we it's all about being digital first, and how can we really listen to the voice of our members, but really come up with solutions that big commercial banks do Foster? I think that that's the that that's the area where we need to get better at in terms of innovation. I'm not sure I know. But I can tell you one of my what I envision as as I and I would love to see credit unions to be the ones creating this. And consumers nowadays, what they care about is transferring money from point A to point B and we're driving consumers crazy with so many different payment options. Call it external transfer pump money xhale You name it. Why cannot I would love for us to come as an industry with the right platform that as member enters the information for that simple transfer from point A from point B, then back office, we, as credit unions decide what's the route, right? Is it an ACH? Is it a cell? Is it etc. So that's something that I wish we are innovated. And we need that maybe it already exists, and I'm not aware of. But I really hope that that's something that we improve. And also, we need to move ahead with data analytics, we need to catch up and make sure that we we we get better at analyzing data, and not based on passing out past historical trends. But really predictive analytics.

Kent Blacksher  1:00:44  
That's perfect. I love it. Like, same question, if you're still good for a minute.

Blake Lyons  1:00:49  
Yes, sir. Yeah, and, you know, I think I'll go back to kind of some of the earlier comments, you know, it's that it's that convergence of listening to the member, you know, getting your arms around data and understanding the data and being able to make decisions based off that data. And, and really embracing that UX UI philosophy, all towards process improvement. But But I think today is looking at, as, as we bring on new membership. And you of course, see that maybe the the traditional types of transactions are being are being self served, you know, that the younger demographic that's starting to walk in our doors, whether they're brick or mortar or virtual, have a thirst for knowledge. And if we are able to provide education and guidance, and go back to that credit union mod motto of people helping people, I think, if we can inform, we are going to generate loyalty. And if we can teach, we are going to have members for life, because we're going to, we're going to help them through the transactions that do matter, like buying a home, buying your first home buying your first car. And I think the more we're able to educate and inform, the more powerful that's going to be in the years to come. So I think that's a great opportunity for industry.

Kent Blacksher  1:02:26  
Very much so. And Dave, why don't you take us home? Where do you think innovation resides in the CEU space coming in the next year or so?

Dave Brandt  1:02:35  
Geez, yeah, the innovation part is always hard because we're credit unions were not capitalized to the level of a giant bank. Maria's points on data first are very well taken. Blake's ideas coming around with that education to grow. My My instant reaction was flexibility and terminology. So, boy, at least we don't call it a share draft account anymore. But I might be able to land some really probably 25 year old accounts, if I don't call it a checking account. Quick example. We have a term share deposit that is targeted at youth savers. We don't call it that anymore. We'd call it a learn to save. And it's a simple account, you deposit money, keep depositing and every two years it happens to renew whatever that is. So those kinds of things and becoming less rigid. Norway's one of the things that when we invested in technology, it made it a little bit harder to be as flexible as we used to be. We used to be able to make any kind of loan we wanted to, but now we needed to be more efficient. So I want to try to bring some of that efficiency mixed with the flexibility we had before and help more people with those loans.

Kent Blacksher  1:03:49  
Perfect, I love it. And I'd be remiss if I didn't turn it to our brain trust as well Mark starting with you any project predictions on the CEO innovation landscape for next year.

Mark Leher  1:04:03  
I'll keep it simple. And on on point to the topic, I think it's going to be more data. I think we're gonna see that everywhere. Where there's a reason you watch a baseball game now and there's three infielder standing in right field, it's because data driven decision making works. I think we need to see more of that and more data fabric inside of credit unions.

Kent Blacksher  1:04:24  
That's perfect. And what a great example and Rob, your thoughts.

Rob Heiser  1:04:30  
I'm gonna go back to what I was saying earlier, I think I think getting data in the hands of not just the decision makers, but I've written the organization super critical. I think that you know, having real time near real time, like talked about it earlier, making sure that the right people have the right data at the right time is super important. I think you're gonna see that throughout. Throughout all the tools in the CEU CRM, you're going to see that and data warehouses you're going to see that in personalization, you're gonna see that In mobile banking, online banking receipt, you see it all over. And I think that's, that's what's gonna come this time next year, I think it's going to having one set of truth and one data throughout all all your tools is going to be very critical.

Kent Blacksher  1:05:15  
That is perfect. And we are a time. I want to thank all of our panelists, I can't thank you enough for the spirited discussion and the quality content and really sharing your time. But more importantly, your learnings with all of our viewers will be certainly doing this again. So on behalf of Maria and Rob, and Dave and Mark and Blake, this is Ken Fletcher. Thank you for paying attention to the segment Data Jam. We look forward to talking to you again soon.

Rob Heiser  1:05:38  
Thank you