Making Dispute Management a 'Game Changer'

For credit unions to use their dispute management system as a game changer in the digital payments revolution, the following key issues must be addressed:

Transaction Cost: The cost per transaction must be an acceptable figure, in order to sustain speedy resolution of all consumer disputes, even when it involves small amounts.
Convenience: On paper, most dispute management systems appear to be simple and user friendly. However, how they actually operate is what matters most. The entire process – from logging in a dispute, to response and resolution across all products and services – must work to enhance customer experience.
Security: Data privacy, transaction security and member trust in the entire dispute resolutions process are critical issues, and must be ensured and communicated effectively.
Member Education: Credit unions need to engage in a continuous process of education and engagement with members. The effectiveness of dispute resolution must be evaluated at every member touchpoint.
Revenue Trigger Management: Credit union costs often spiral for several reasons, including the siloed nature of their systems; duplication of infrastructure, people and processes; outdated technology that requires constant maintenance and strategic change due to new demands; and regulatory convergence. In the past, a significant proportion of these costs were borne by members. This cannot continue, however, as regulators and consumer watchdog organizations monitor charge structures far more diligently, and demand greater transparency in charges to reflect the true costs.
Technology Trigger Management: Most financial systems were designed and built either prior to the advent of digital payments, or at a time when the growth of digital services was not anticipated to reach the levels that we are experiencing today, or will experience in the future. The consequence is that current systems are starting to show their obsolescence. This is a cause of great concern, as credit unions that fail to provide guaranteed responses through digital channels will suffer consequences that include the associated loss of revenue, penalty costs and most importantly, the loss of members.
Next Generation Technology: Any dispute management system needs to open up to include external interfaces and across member services, such as loyalty, rewards, cashback, discounts, etc. Ideally, credit unions should adopt a "sandbox" model that enables any service provider to integrate through APIs. This can also lead to adoption of next generation technologies such as distributed ledgers (or blockchain.)

A Starting Point for Change Management

Similar to all types of organizational change, the most logical starting point for development of appropriate strategies and tactics to overhaul a credit union's dispute management capability begins with an analysis of current conditions. These audits should be comprehensive and examine every aspect of the dispute resolution process.

Instant Insights /

Leveraging Dispute Management for Competitive Advantage

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