One of the most fascinating aspects of the rapid evolution oftechnology is how much the consumer is driving which technologies acompany uses and offers. This shift is critically important,because the consumer in this new world truly is king. They not onlyhave greater choice than ever before but a much louder voice – andtheir expectations have risen accordingly.

Consequently, it is up to companies, including credit unions, toprovide them with products and services that meet their needs evenas they continue to evolve. The recent Eighth Annual BillingHousehold Survey conducted by Fiserv shows a big increase in thepercentage of households that use more than one payment method – itnow stands at 90%. This means your members want anduse options when it comes time to make a payment orconduct a transaction that move in step with the way they live andwork.

Digital Options in Step With How ConsumersLive

With members expecting more choice and convenience, creditunions – which have often led in implementing new technology aheadof slower, larger competitors – are afforded the opportunity toseize a competitive advantage. Offering easy, convenient and securedigital options for repaying auto loans or mortgages, includinge-bill adoption and alerts to let them know when bills are due,plus the ability to opt in to other digital options and paymentchannels, provides a demanded capability for members. Without theseoptions, consumers will seek a more convenient experienceelsewhere, including from non-financial institution competitors whoare increasingly intruding on the landscape.

Yet some auto lenders do not make it easy for people to makepayments how and when they want. In many cases, consumers who takeout a loan are still being issued with the traditional coupon book– even though they have signed up for digital payment options whenthey are originating the loan. According to the Billing HouseholdSurvey, 21 million households change payment methods frommonth-to-month – mailing a check one month then making a mobilepayment the following month, for example. That's up 40% from theprevious study. Borrowers may prefer one-time or recurringpayments, so auto lenders need to support both. Offering greaterchoice when it comes to bill payment not only improves membersatisfaction and fosters a closer relationship between them andtheir credit union. In addition, it can be animportant cost-saver.

When coupon books are being issued to members there is a delaywhile a check is written and the coupon is mailed in, compared tothe faster revenue collection method of making digital paymentoptions. Presenting these communications digitally not only keepscosts down but reaches the member more quickly and, because it isin the form they typically choose to communicate anyway, is morelikely to be read.

Today’s Member Is Mobile

According to the Fourth Annual Biller Mobile Bill PayBenchmark Study from Fiserv, 24% of visits to biller websitesare from mobile devices. What are people doing when they get there?They're paying bills. Paying a bill is the top activity for mobilevisits to billers' websites, and 33% of U.S. online households arepaying at least one bill through a mobile device each month,according to the same study. To meet the needs of borrowers, makeit easy and intuitive for borrowers to access, set up and maketheir auto loan payments on a mobile device.

Once members have been driven to your credit union’s website,not only can they set up bill payments, but they can also see otherproducts and capabilities they might never otherwise have knownabout. Beyond cross-selling, it is an opportunity to improve theway you are servicing your members as they now have the ability tocommunicate with you real-time via digital touchpoints, such aswebchat. In essence, far from weakening member relationshipsbecause they are not coming into your branches, when it is doneright, it enhances the bond between credit union andmember.

Digitizing the credit union experience is not only good formembers but also for the financial institution, not only in termsof facilitating faster payments, but because it helps to reduceregulatory risk as everything is happening automatically and aconsistent method of transferring data throughout that customerexperience is being delivered. An experienced lending technologyprovider can facilitate this adaptation, implementing the righttools to meet consumer expectations for a smoother, more digitalprocess.

The Experience Is Everything

For the first time, the convenience factor is exceeding rate inimportance to the consumer – the chances are they will be willingto pay a slightly higher interest rate if they have the ability towork with a lender who is going to give them a more convenientexperience across the board. That convenience factor has become socritical based on other experiences consumers have in theireveryday lives.

Knowing and understanding member behavior, what it means for thecredit union and how to increase the convenience factor to improvetheir customer experience is key to continuing to deliver value, aswell as creating a more efficient operation in the process.

Monica Orluk is director, lending solutions for Fiserv.She can be reached at [email protected] or onTwitter at @OrlukM.

Gary Brand is director, payment strategies for Fiserv. Hecan be reached at [email protected].