Many credit unions (CUs) are responding to the digital transformation with new products and services to appeal to younger consumers, but not everything that corresponds to a better member experience takes place on the front end. To provide the best products, CUs also need a strong systems backbone that ensures they can have more than a surface offering of digital tools.
Lisa Larson, vice president of payments and operations at Amplify Credit Union, told PYMNTS in a recent interview that Amplify is making strides on several fronts to attract new members and help maintain financial institution (FI) primacy with existing ones.
From educating younger consumers on the benefits of banking with the CU to introducing digital card issuance and contactless payment, Amplify has a number of plans in the works. It has introduced mobile deposit and enables members to connect with a variety of mobile wallets and peer-to-peer (P2P) payment platforms, and also permits members to link directly to accounts with other FIs to simplify moving funds.
“The next thing we’re really looking toward is building out a strategy and a plan for real-time payments,” Larson said. “Our members want things instantly, but today, most things are batch. Real-time payments is not something you can get to quickly because of the infrastructure [needed] to build to it.”
Larson explained that the focus for Amplify has been on the operational side. A number of pieces need to be in place to implement real-time payments, but the groundwork begins in systems and processes that are invisible to members.
Making the Mortgage Payment
Amplify’s core business is mortgages, Larson said. Much of what the CU works to speed up or improve has to do with funding mortgages or paying brokers and title companies. Improving that process has been a higher priority than other areas involving money mobility, but the work being done behind the scenes to facilitate mortgage payments is all part of the big-picture move toward faster transactions.
“With real-time payments, within 30 seconds of us clicking a button, that funding company or that broker could have those funds,” she said.
Not all transactions can go in real time, however, and some larger payments may still have to go through as wire transfers. Where the real efficiency comes is in the automation of that determination. The system that Amplify has implemented can automatically determine the fastest way to make the payment and disperses the funds in the most efficient way without human intervention.
We’d love to be your preferred source for news.
Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!
Larson said Amplify is working to grow its mortgage business, but bringing in more clients and more transactions is no good if the system for handling those payments gets bogged down by the growth. By having a robust system that automates most of the back-end work without human intervention, Amplify can take on new members and new loan clients without worrying about how it will handle the growth.
Reinforcing the Backbone
Larson explained that the recent decision to switch to a different debit card processor followed the same philosophy that informed the automation of mortgage-related payments.
“We’re fixing the backbone so we can be more strategic moving forward, and [we’re] starting to outline the needs and wants that we’ve had out there,” she said.
One digital tool that Larson said Amplify has wanted to offer for some time — and one that ranks highly among member desires — is card controls. Amplify plans to launch card controls later this year that will enable members to use digital tools to turn cards on or off, set spending limits and even set geographic restrictions on where cards can be used.
The new partnership will also enable Amplify to offer contactless cards. The CU will be working on digital issuance, which would enable new cards to be populated immediately in members’ digital wallets. While members who open accounts at physical locations can already get instant-issue debit cards, the growth of digital account opening has left some new members waiting for their cards to arrive in the mail.
“With our current processor, our hands were tied,” she said. “Moving and making those strategic alignments with a partner that has the same vision as Amplify is making us turn this around.”
Larson said Amplify has had these digital products and services on its roadmap, but without the support on the back end, implementation was stalled. Now, Amplify will be able to work toward expanding member access to other digital wallets and P2P payment platforms.
Setting a solid foundation, whether it involves debit cards or mortgage-related transactions, will make it possible for CUs to continue to improve and innovate down the line.
Add as Preferred Source
