From their beginning, call centers have traditionally beenassociated with ringing phones, taking messages and passing themon. But today's call centers have evolved to become substantialcontributors to credit unions' value proposition of service,convenience and trust.

Call centers in 2013 play an important role in the present andfuture operation of credit unions and for the credit unionindustry. In a world where direct human contact seems to be losingground to email, voice mail and texting, the sound of a real humanvoice can be a significant business asset when a member calls forhelp or wants to conduct a transaction such as buying a car.

Talk about cars, an interesting consumer research by MaritzResearch titled “New Vehicle Customer Study,” reveals thatcontrary to the growing belief that social media will soon replacetraditional automotive dealerships, the study underscores that thesalesperson at the dealership is still the most influential sourceof information for car buyers in making the deal.

According to the study, 21.9% of respondents said the dealershipsalesperson was the most important information source when it cameto selecting and purchasing a car. Next in line was family at18.4%. “People buy from people,” said Chris Travell, vicepresident and strategic consultant for Maritz Research. “Socialmedia can certainly support the selling effort, but I believe itwould be a mistake to believe that social media will usurp it.”

Although a call center is not face-to-face contact with amember, it's the next best thing and it can be a powerful advantagein today's digital, arm's length, “please leave a message and wewill get back you” world. For client credit unions, outsourced callcenter services can be a primary conduit for their members tosecure auto loans and mortgages as well as conduct other lendingand transaction services.

Call Centers and Gen Y

Another important benefit of an active call center that deservesconsideration is the fact that the ubiquitous Gen Y consumer – thechild of the virtual age – in many cases actually prefers humanover digital touch, according to a study by Fiserv Inc. While theytend to gravitate towards digital services due to convenience andimmediacy of transaction, that preference does not seem to limittheir actual usage of “live” channels such as call centers andbranches.

In fact, the research shows Gen Y consumers are more likely tocontact a call center or visit a branch than any other age segment.In addition, Gen Y consumers represent the highest percentage ofhigh volume users – five or more visits a month – for theseservices. Gen Y consumers appear to have an “all the information,through all the channels, available all the time” attitude thatvalues the touch tone availability of call centers.

In many ways, call centers give credit unions a big advantageover competitors. Call centers make it easier for credit unions tooffer lending and marketing operations as well as other services24/7, while maintaining a higher standard of service during offhours. After hours is the prime shopping time for credit unionmembers, especially when buying a car. With a call center, a creditunion will most likely capture that loan opportunity, whereaswithout a call center, it will probably lose the loan and anyassociated insurance and affiliated fees.

“Members are coming into branches for accounts over loans at afour-to-one ratio,” said Pierre Cardenas of CU Lending Advice,speaking to attendees at the Credit Union Association of NewMexico's 2012 Call Center Conference. While this statistic maypose questions about the future role of brick-and-mortar, italso highlights opportunities for credit unions to thinkdifferently about loan generation. “Five years from now, 80% ofloan originations will be coming from the contact (call) center,”Cardenas stated. “It's where all remote channels are going.” Reaching Out

Call centers can also establish a platform for outbound callingto reach out to members to market special promotions, salesprograms or simply to say “thank you” for their business. This canenhance the personal touch that attracts and keeps members.

“Call center agents speak more to members in a day than the CEOdoes in a month,” said Jeff Rendel, former bank regulator andpresident of Rising Above Enterprises, also speaking to attendeesof the same CUANM conference. “Some of your most important businessleaders are the ones without business cards.”

Whether it is auto, mortgage and other lending activity, or moreGen Yers calling, call volumes have increased steadily along withthe improving economy. The majority of daily transactions such asbalance inquiries and fund transfers, which often are relegated tohome banking, are well suited for outsourcing to an experiencedcall center service provider.

Also, avoiding unnecessary overhead helps a credit union achieveoperational efficiencies that boost profitability and improvemember service, convenience and trust.

When all is said and done, call centers are a key adifferentiator for credit unions versus banks. For a growing numberof credit unions, call centers are as much a part of their DNA aslow rates and personalized member service. Serving members with afriendly voice from a real human being helps create the trust andloyalty other financial service providers can only dream about.Whether operated in-house or in partnership with a professionalorganization, call centers are an integral part of credit unionsuccess and long-term member loyalty.

MarkChatfield is the chief operating officer at CO-OP Member Centerin Fort Worth, Texas