P2P Payment Platforms & Your CU

Person-to-Person Payment Platforms & Your Credit Union

For those who grew up in the digital world, person-to-person or peer-to-peer (P2P) payment applications are nothing to write home about. Gen Z and Gen Alpha have always known the glories of paying a friend for coffee via their phone. For the older generations, however, P2P payments are an incredible advancement in financial technology. Let’s look at P2P Payment Platforms & your CU!

With so many choices for person-to-person payment platforms, one might wonder how we got here. Who created the first P2P payment platform? Why was it developed? How do we expect it to advance in the future? Most importantly, how will it impact the credit union industry?

History of the Direct Payment Apps

The first iteration of P2P started with Max Levchin and Peter Theil who founded the company Confinity, Inc. After merging with X.com, owned by Elon Musk, they launched the first public offering of PayPal as a money-transferring service in October 2000. To this day, PayPal is still a leader in digital wallet spaces all over the world.

PayPal paved the way for many future P2P platforms including Zelle, Venmo (owned by PayPal), CashApp, and Apple Pay. All of these companies expanded on the foundation of PayPal — providing secure money transfers from person to person, or person to the merchant.

Current Trends for P2P Payment Platforms

It is almost impossible to escape P2P payment platforms nowadays. Even if you don’t use one personally, it is almost guaranteed you know at least one person who does. In 2018, it was estimated Zelle had nearly 27.4 million U.S. users and Venmo had 22.9 million. The current trends show that P2P payments are not slowing down anytime soon.

What Does This Mean for Credit Unions?

Credit Union Times reported about Fiserv, “The Brookfield, Wis.-based payments and fintech firm announced this week that it connected more than 360 credit unions and other financial institutions to Zelle via Fiserv’s Turnkey Service in 2019, bringing the total to almost 600. In addition, the number of people using Zelle via Fiserv to send money jumped 116% in 2019, and the number of people using it to receive money rose 145%. Transactions were up 207% in 2019, it added.”

For P2P payments to be accessible for all consumers, it is important for financial institutions to pursue partnerships with P2P payment platforms. Credit unions are no exception. Many credit unions see the demand for P2P payment platforms by their members and are establishing partnerships with fintech companies just like Fiserv to provide that service.

Maybe now is the time for your credit union to pursue a partnership that will benefit your members with P2P payment options. Do you have any input on P2P Payment Platforms & Your CU? Hit us up here or on our social media!

When it comes to Credit Union Consumer Lending Documents and Data Linking Services, Oak Tree is here for you. Oak Tree is the perfect partner for credit unions. We supply compliant forms and documents for membership, consumer lending, and home equity lending. Contact us today to learn how we can help streamline your credit union lending.

Don’t Get Left Behind in 2021

Have you and your #CUteam reflected back on the year 2020? If so, are you pleased with your marketing efforts and ROI? Or, is there room for improvement? If you’re like us, you know there is always room for improvement! When it comes to marketing, there is also room for innovation and creativity as to how you will get your credit union’s message and services out to your current and potential members. Don’t get left behind in 2021!

Innovation is what marketing thrives on and within the credit union industry, you and your team have ample resources to ensure that your strategy for the remainder of the year, will be successful. Oak Tree is here to guide you and your CU on how to be innovative and remain ahead of the game. When it comes to the financial industry, it is hard to be “unique.” With your competitors offering relatively similar products and services, standing out can be challenging. The following tips and suggestions can help your CU marketing team gain some leverage in an attempt to stand out from the rest.

Going mobile with your financial product marketing initiatives

You may have noticed, with the year we had in 2020, digital marketing is where the future of marketing will continue to go, and where your CU should focus its efforts. Going mobile with your CUs products and services while offering your members a seamless digital experience is where your CU can stand out. Doing business on the go is what your users are accustomed to, in fact, new research has found that we’re spending five hours a day on mobile devices, and 90 percent of our mobile time is spent using native apps. This means any marketing plans for your CU must include a heavy focus on mobile marketing, by ensuring there is a CTA (call to action), making sure any sign-up forms are short and easy to complete, and you have a solid and easy-to-read design layout. Your mobile marketing is about acquiring engagement and getting your brand out there. Making a sale is just the cherry on top.

Creating educational content

Creating educational content that revolves around your products and services will be very beneficial for your current and potential members. Making the content clear and easy to understand, for someone who may not have prior knowledge about finances should be your CU’s first step. According to a recent study, 45% of Millennials want financial products and services that help them with their budgets. Furnishing something that could assist users with budget-related issues that lead to solutions would set your CU apart from others, as well. Setting up a chatbot on your site that is available 24/7 to your users will also put you ahead of the curve while taking care of your members at the same time. People want instant answers and useful information, and you can give it to them!

Humanize your credit union through social media

As mentioned, social media and digital marketing are where your CUs efforts should lie. Credit unions are built on the relationships they have with their members and their ties within the communities they serve. Showcasing all the good your credit union does on your social media channels is a great marketing tool. Social media can provide a perfect medium to show the community that your CU is trustworthy, and it is a great way to humanize your credit union’s brand. Allowing your credit union to open up on social media also gives you an advantage if any negative feedback comes in, you can be sure to be on top of it. Connecting with the community bolsters your brand and tells your credit union’s story that could otherwise be left untold!

Don’t get left behind in 2021, Oak Tree can help your credit union lock down your 2021 marketing strategy, and we have all the best tools to help you analyze, plan, and optimize while bringing that strategy to life. Contact us for a free consultation!

The Last Step

Humanitarian Highlight 12.31.2020

We’re back! Before the last step you need to take the first step.

Today is brand new #HumanitarianHighlight! We hope you all have been doing well and staying healthy! We are truly lucky and thankful to be part of such an incredible community. The #CUfamily is one of a kind who exemplifies the meaning of #CUdifference and #CUmovement. If you know of a credit union that has gone above and beyond for its community, please message us so we can give them a shout-out on all of our social media accounts!

IAA Federal Credit Union

Helping to support their community, IAA FCU partnered up with Federal Home Loan Bank of Chicago to donate $7,500 to Midwest Food Bank! Outstanding job, everyone!

“As a faith-based organization, it is the mission of Midwest Food Bank to share the love of Christ by alleviating hunger and malnutrition locally and throughout the world and providing disaster relief; all without discrimination. Our vision is to provide industry-leading food relief to those in need while feeding them spiritually.

Our story starts in 2003 when the Kieser family actioned their faith to share their blessings. They turned a barn on their family farm into a distribution site for local food pantries. Soon they realized the need was greater and there was room for growth. Thanks to the generosity of our donors, the valuable work of our volunteers, and most importantly, the blessings of God, Midwest Food Bank now shares the blessing worldwide. More than 4 million people were impacted in 2019. Midwest Food Bank currently distributes over $23 million worth of food to over 2,000 non-profit organizations each month. This is done from our ten locations in Illinois, Arizona, Florida, Georgia, Indiana, Texas, East Africa, and Haiti.” Midwest Food Bank

CLICK HERE TO LEARN MORE!

Affinity Federal Credit Union

Always taking that extra step to help someone in need, during Affinity FCU’s give-back week, one of their branches (New Haven Branch) took the time to volunteer a fall cleanup at the New Reach’s Life Haven Shelter! Thank you for all of your efforts in taking care of your community #CUfamily!

Fox Communities Credit Union 

Knowing that their Stock the Shelves campaign will be looking different this year because of COVID-19, Fox Communities CU is more determined than ever to make this campaign the biggest they have had yet. Since many families have been impacted by the pandemic, campaigns like these are crucial to help our many families who have trouble providing food on the table. 

“I can’t believe how many people I’m hearing from who have had a job forever, and all of [sic] the sudden their job isn’t there, or they’re making a lot less money,” she said. “If we can at least make sure they have full bellies when they go to bed at night that could be a huge part of what we’re doing.” Lynn Marie Hopfensperger, Development Officer 

Head to the credit union’s website for more information about the event! 

1st United Services Credit Union

Understanding the struggles of families all over the county not having the funds to put food on the table, 1st United Services CU is matching their virtual food drive donations up to $10,000! Thank you all for always being there for your community! 

“Due to COVID-19, food has become more of a necessity now than ever before, according to Alameda County Community Food Bank (ACCFB). And every dollar donated to the ACCFB equates to $7 worth of healthy food for a local family. That’s why 1st United has moved their food drive online this year and will be matching monetary donations made by members, staff, and community.” CUinsight

Royal Credit Union

Caring about their community, the foundation at Royal CU pledged $500,000 toward the $7 million expansion of the Eau Claire public library! 

“The Foundation focuses on large-scale, capital projects that help build community and create the spaces where people come together. Libraries are community gathering places that offer resources for everyone. We are proud to support the expansion of the L.E. Phillips Memorial Public Library and appreciate the many ways it benefits the Eau Claire community.” RCU Foundation President John Sackett

Travis Credit Union 

How outstanding is this? The Travis Credit Union Foundation raised more than $1 million for the COVID-19 Relief Initiative. This was then MATCHED by Travis CU for a grand total of $2 million! So, where will the funds be going? Well, the funds will be distributed to 83 local community organizations, which will then provide many resources and services to families and individuals who were impacted by the pandemic. 

“We focused where we know funds would immediately recirculate and strengthen communities, creating authentic community impact and financial wellness. We will continue seeking more resources to help non-profits survive and innovate as we all prepare for the ‘new normal’ in the aftermath of COVID-19.” Damian Alarcon, President of the Travis Credit Union Foundation 

I-C Federal Credit Union

As part of the credit union’s “Empower – A Community Connection” initiative, I-C FCU donated $4,000 to Ginny’s Helping Hands & Food Pantry of Leominster! 

Quotes are taken from the Sentinel and Enterprise article: 

“We are very grateful to IC Credit Union for this generous donation,” said Susan Chalifoux Zephir, executive director of Ginny’s Helpings Hand. “This will go a long way in helping us provide fresh, nutritious food to our food pantry families and ensure that no one goes hungry during these challenging times.” 

“In times like these especially, outreach programs like food pantries need our help,” said Holly Sanchez, senior vice president of Human Resources at IC, “and we are humbled by their commitment to serve.”

If you have any questions, call us at (949) 548-7601, and be sure to check out our Products & Services for your Credit Union! From the first step to the last step of every project, we want to help you get to a successful finish!

New Year, New Trends

2020 was quite a year, right? So many changes presented themselves and we all had to learn what it truly means to be resilient. Credit unions everywhere faced new challenges and had to quickly adapt and think fast when it came to helping their members. Not only that but the way we market had to also take a quick turn to all digital platforms. In this marketing corner, we will discuss what your credit union can expect when it comes to marketing and best practices in 2021. It’s a new year and so new trends come into play.

BE TRULY ADAPTABLE. As we all saw, things can quickly change at the drop of a hat. While in the marketing profession, most of us are used to things changing quickly, and we must continue to prepare in advance. This means, don’t just wait until something falls in your lap before addressing the situation. Go looking for the disruptions! By doing that, you can ensure your team and CU can be actively prepared for anything in the foreseeable future. We all know that marketing means always adapting – and with the year we had, going into 2021 – just remember to continuously listen to your members and keep an open line of communication.

TAKE ON DIGITAL TRANSFORMATION. If 2020 gave us an insight into the future, it’s that we must be pushing for digital. According to Global Marketing Alliance, in 2020, investments in paid, owned, and earned digital channels now account for almost 80% of multichannel budgets, with digital advertising and search advertising taking nearly a quarter (22%), with social marketing (11.3%) and website (10.4%) topping the list. The change we are seeing when it comes to going digital is something that is likely to be permanent going forward. If your CU is not on all the possible digital channels, you are missing an opportunity to reach your members and potential members.

INCORPORATE OLD WAYS. While the New Year starts to unwind, some of our old values and ways of doing things will eventually return. Being able to incorporate old marketing tools with new and digital ones will be very beneficial for your CU. The future of marketing will fall within traditional and new, and effective ways of marketing. While some of your members may be ready to return to doing business in-branch, a lot of members will still be wary of doing so for some time to come. Being able to accommodate all members is what will make your CU stand out from the rest. Giving members the relationship that comes with banking with a CU through digital platforms is not always easy, but hopefully, with a good marketing team to back you up, it’s possible! The new normal for CU’s will be taking on a balance of both marketing worlds.

While there are sure to be other trends that may be predictable or unpredictable once we arrive in 2021, one thing that will always remain the same is Oak Tree’s ability to be there for your CU! With over 37 years of experience in the credit union industry, we can help make sure your CU’s marketing goals are being reached and you are staying ahead of the race. Our marketing services department is standing by to answer any questions you may have! If you would like more information about our custom marketing services, feel free to chat with us at MarketingServices@OakTreeBiz.com. 

Is Now the Time for a Core Conversion?

When the first credit union in the U.S. was opened in 1909, all banking was done by paper and, all transactions were manually processed. We have come a long way since then, but with new technology every year, there is always room for improvements. For some credit unions, now is the time for a complete core conversion to improve efficiency and allow for more data integration. It might be time to ask yourself, “is now the time for a core conversion for your credit union?”

A credit union’s core platform and operating systems are arguably the most important pieces to the large puzzle of operating a credit union. Without an adequate system, a credit union may have a difficult time serving its members’ needs. If a core platform is holding back potential asset growth, it’s time to look for a better solution.

When preparing for a core conversion, there are many things to consider. What are the needs of the credit union members and staff? What core platform is going to serve these needs best? For each credit union, the answers to these questions will be different, but the most important thing for all credit unions to consider are the partners that will join them in this conversion.

Vendors

When preparing for a core conversion, selecting partner vendors is one of the most crucial steps. All credit union vendors have unique offerings and specific uses. Finding the right vendors for your needs may take some time and research, but it will be worth it in the long run.

A few things to consider when deciding what partners are right for your credit union:

• Product Harmony – How will all the products from different vendors work together in one harmonious core platform?
• Training – Will you be responsible for training your team on the new products and services or will the vendor provide training?
• Expense – What is your budget? Will your vendor work with you to stay within budget? Would this expense be an investment that saves your credit union in the long run?

As a credit union vendor, Oak Tree Business Systems Inc. is the perfect partner for your core conversion. With our 37+ years of experience, we provide superior products & services for all your lending needs.

COVID-19 Impact on Core Conversions In 2020

For many credit unions, 2020 was going to be the year for much-needed core conversions. When the virus hit the U.S. in March, plans changed quickly and credit unions had to adapt.

”According to Philip McArdle, director of project management at technology vendor Corelation, a client that was originally scheduled to convert in April requested an additional 30 days to focus on the needs of its staff. Another credit union set to make changes with two core systems in May elected to postpone the start date until late summer in the hopes that team members would be able to work together face-to-face on the conversion site.” –Credit Union Times

For others, delaying the conversion was not an option and facilitators had to come up with creative solutions, including training from home. It is amazing how many credit unions were still able to continue fulfilling these herculean projects during such uncertain times. This is what makes the credit union community great – a willingness and drive to make things better.

No one can be certain when this “new normal” will go back to a level of normalcy that we can be comfortable with, but we know by looking at past pandemics and global situations that recovery will rely on technology. If your credit union has recently switched its core, gotten its first core, or is getting ready for a core conversion, then be sure to contact one of our sales representatives so we can help you build an award-winning platform that will best serve your members and bring growth to your credit union.

Fintech Friction

Originated in 1866, Fintech came about when the very first transatlantic cable was laid. From 1950-1990, five decades of financial technological developments came with having to do with credit cards, ATMs, trading, computers, and data systems. As years went on and technology started becoming more advanced, new developments came along to help banks stay up to date with the new changes. When systems are not planned it can create some fintech friction.

In today’s world, it is imperative to have a system that is up to date (made necessary by advancing technologies that are becoming easier for users to navigate), and a system with fewer clicks, known as a “3-click rule.” A huge consideration when taking on the role of making sure that everything is running smoothly is to ensure that the system is performing in a fast and efficient manner. When people are trying to browse through an application on their phones and the application is difficult to maneuver, they will likely get frustrated and click out of the app, or they may even delete it. We need to remember that today we tend to get impatient when an application or web browser takes more than a few seconds to load correctly. This has to do with how technology advancements are conditioning us to have “unrealistic” time-slot expectations.

A Forbes blog states, “Waiting doesn’t seem effortful, but it is still friction. Even a short wait may prevent the desired action. Waiting adds uncertainty and increases anxiety when the exact delay is unknown. Given an arrival window of “8 AM to 4 PM” for the cable repair person, how do you feel at 3 PM when they have yet to arrive?” Talking business, when customers are scrolling through their accounts or a forms document, they are expecting the process to be fast and easy. Our daily schedules are hectic, and if we have to spend 20 minutes on a forms application, then we may rethink the task we were planning on completing. Not only is having top-of-the-line technology important for your credit union, but it also allows for your institution to provide easy access to all of the products and services you offer your members. Members are accessing apps with a certain goal in mind, or they could just be curious about the credit union. Making sure the app or website is efficient, clean, put together, and up to date will allow for great satisfaction and an awesome customer experience.

Looking deeper into this topic, there are many different mortgage companies supposedly “taking power” from other financial institutions. Whoever is in need of a loan should research to see which company provides the most benefit, who will pay more attention to each potential member walking through the business’s doors, and what goals are their members or potential members trying to achieve. Some things a financial institution needs to think about before a member applies for a loan: Is the loan process long? What kind of information will be requested? How will the credit union provide information (over the phone or in-person)? All of these questions need to be thought through. Credit unions make the process easy, efficient, and fast. Staff members care about every single person who walks through the company’s doors. With a smaller pool of members than other financial institutions (due to field of membership requirements), customer service and customer satisfaction is a huge responsibility for every staff member. Providing the best loans for their members and having someone on the phone and in-person to chat about any questions or concerns will always be a guarantee.

When it comes to banks and mortgage companies, their pool of members is very wide. This can and will result in not paying enough attention to each member’s needs, and the bank will try to get their money back from the loan as fast as possible. Interest rates are a major factor of getting their money back AND making a profit, [sic] “A “nonbank” can be seen as a financial intermediary. Instead of depositors, a nonbank gets its funds from investors, debt (via bond sales), or by borrowing from commercial banks. It takes that money and loans it to borrowers. The fees and interest collected — as well as principal repayments — are then used to repay the capital with interest.” The Simple Dollar

Oak Tree Business Systems, Inc. has been in the credit union industry for over 37 years. We have developed, supported, and maintained lending/operational documents for credit unions in over 50 states, including Puerto Rico and the Virgin Islands. Not only are we efficient, but we work with you to create forms that accommodate your credit union’s technology objectives and facilitate a smooth workflow. These documents are easy to use, are specifically designed to match your credit union’s policies and procedures, and work hand in hand with your data/loan processing system. Our compliant forms and marketing services are at the top of the credit union game. Oak Tree wants your credit union to feel secure in the forms you provide your members, so please let us know how we can help! Let’s avoid the fintech friction.

Credit Union Information Governance

Is Information Governance Important to Credit Unions?

What do you know of credit union information governance? Nothing is more important to a credit union than compliance, and one of the biggest components to this is information governance. This term may not be so familiar to those outside of the financial sectors or corporate cultures, but it is something that has become more important with each passing day. Every company, especially credit unions, must contend with a myriad of ever-changing laws, compliance issues, competition, economic uncertainty, and the malicious hackers and criminals that are always a danger to their assets, which contributes to growing concern. Information governance is nothing more than the protocols put in place for any organization to keep its information secure, yet usable. It is being meticulous and disciplined in the collection, management, and output of any information or data in a corporation.

As more credit unions expand their use of fintech, we see a need for them to also bolster their practice of information governance. This has led to the growing need to be more careful with the bulk of data that has been collected. Especially as more states and even the federal government have begun to craft new regulations and controls on how such data can be used, how it must be curated or stored, and of course how to handle the liability issues if an organization is breached. Then there are also the resources used to collect, store, and safeguard this data as a cost to the corporation in comparison to the lifecycle of its usefulness or reliability.

Credit Union Liability Issues

Besides liability issues or the need to stay compliant, we have also seen that when credit unions craft and implement more stringent and careful protocols for their information governance it comes back to that very important shareholder – the member. Protecting the information on your members is also about protecting them from fraud and other abuse. It gives them confidence in your institution when they know that their information can be trusted with your credit union. This is just one more way to build that goodwill and reputation that helps every company survive through the most severe of situations.

There are many instances where it may seem that the data you have is at risk, and this can be very true when dealing with vendors. Oak Tree has been a trusted vendor and we completely understand and respect the need for such controls on sensitive data. Staying compliant doesn’t just mean being aware of the law, it is meant to protect all of us and allow us to feel accommodated.

Oak Tree Business Systems has been in the credit union industry for over 37 years, so we can say that we are confident, and encourage all credit unions to use our forms. We comply with both state and federal standards, meet the expectations of each credit union’s members and staff, work on each credit union’s data processing system (and within their policies), and have an effective compliant forms system.