Web Services: It is not IF, it is WHEN!

www.rtefs.comwww.rtefs.com

WEB SERVICES:

It is not IF,

it is WHEN!

Credit Union Products and Services – Sep. 2011

Agenda

• Survey

• Technology Today

• The Market

• Web Services

Survey

• How many have a web service at the credit union today?

Technology Today

• 2010 – Est. 10% to 12% of Financial Institutions offer web account opening (Javelin)

• May, 2010 – Javelin Report – 1400 Financial Institutions offer web account opening

• 2011 – 25% of all software will be delivered as “Software as a Service (SaaS)” – Gartner Group

Lieberman Research July 2010

• Total Institutions Surveyed 46% evaluating online applications today

63% plan to implement by 2012

Lieberman Research – July 2010

• Credit Unions 82% somewhat or very familiar with technology

20% of mortgage applications taken online today

31% of mortgage applications expected to be taken online by 2013

The Market Today

Members

Credit Union Membership

• 1980 – 43.9 million

• 1990 – 61.6 million

• 2000 – 79.8 million

• 2010 – 91.4 million

U.S. Census Bureau Predictions

<5 10-14 20-24 30-34 40-44 50-54 60-64 70-74 80-84 90-94 100 +

2003 2025 2050

Where to look for Growth?

• Average age of credit union member is 47 (CUNA Mutual Group)

• USSCO Federal Credit Union lowered the average age of its membership base from 45 to 38 by implementing youth and junior services programs. They invested in technology to provide the speed and convenience demanded by younger members.

Why Web Based Banking?

(negative) Economic Factors

• Outside forces impact on your bottom line: Share insurance

Corporates

Overdraft services

Interchange fees

Regulatory costs

Implementation Reasons

• Better serve borrowers

• Efficiency

• Wave of the future

• Increase volume

2011 WEB SERVICES

Is it the same as Online Banking,

Or is it MORE??

Strategic Direction

• Online Banking – Convenience for the member

• Web Services = GROWTH + EFFICIENCY

Online Banking vs. Web Services

• Online Banking

• Account Transfer

• Balance Lookup

• Pay Bills

• Account history

• Online statements

• Web Services

• Gain new members

• Gain new loans

• Cross sell

• Cost reduction

• Marketing

• BSA/AML

Cross Selling ROI

Cross Selling ROI Annual Number of Loans Processed 3,000 Annual Number of New Relationships Processed 1,500 Values of Fields in Green Can Be Adjusted By You

Tangible ROI

Cross Selling Success Projections

Additional Revenue

Anticipated Increase in Loan Volume 5% $150,000.00 Average Income per Loan $1,000.00

Anticipated Increase in Loan Revenue from New Relationship Transactions 5% $75,000.00

Average Income per Loan $1,000.00 Consumer Protection Products/Insurance Participation Anticipated Increase in Loan Insurance 5% $22,500.00 Average Income per policy $100.00 New Consumer Acquisition via Xpress Accounts Additional Consumers via Online Channel 150 $75,000.00 Ave Income per Consumer $100.00 Average Length of Relationship 5

Cross Selling ROI

Reduced Labor and Processing Costs Current Time to Process New Loan 35 $20,625.00 New Time to Process New Loan 10 $8,250.00 Current Time to Process New Consumer 35 $10,312.50 New Time to Process New Consumer 10 $4,125.00 Average Cost of Labor with Benefits $16.50 $18,562.50Reduced Systems & Administrative Costs Integrated Member "Switch-Kit"

Integrated Mortgage and Business Lending Module

Robust Reporting Capabilities Paperless Workflow Costs Savings

Cross Selling ROI

ROI Income/Savings $322,500.00At $8 Per Application Annual System Cost (based on projected volumes) $39,000.00 Bottom Line Net Revenue Gain from LoansPQ $283,500.00

Number of Cross Sold Loans Needed/Month to Cover System

Cost 3.3

Account Opening

Disclosures

Data Collection

Identity Verification

Funding

Switch Kit

LENDING

Collateral Information

Borrower Information

Financial Information

Cross Sell

MARKETING

Creative Customization

Creative Management

Customized Creative

Process Changes

Different Goals

• Yesterday

• Complete the process

• Collect the funds

• Meet all of the requirements

• Today

• Grow the membership, deposits and loans

• Cross Sell

• Become a trusted advisor

Yesterday’s Process

• Stand Alone Personal Computers

• Networked Personal Computers

• Web Applications Print and Submit

Complete and Submit

• Paper and Physical Signatures

Today’s Process

• Web Banking Member data collection

Product selection

Member verification

Funding

Paperless

• Signature Key Pads

• E - Signature

Credit Union Benefits

• Growth through: Web applications – available when your member

needs them

Generation X and Y – Doing business in a manner familiar and preferred by them

Trusted advisor – helping your member improve their financial position

Cross selling – guaranteed, period!

• Productivity Gains

• Cost reductions

• A system that pays for itself

Real Life Example

• Louisiana Federal Credit Union, LA. 2004 to 2009 – tripled its mortgage volume

2 person staff – no increase in staffing

Web based application

THANK YOU

• Gary Hess

• President, RTE Financial Services

• 1-320-281-9765

• Gary.hess@rtefs.com

• www.rtefs.com

Web Services: It is not IF, it is WHEN!

Economy & Finance

Open Images: Culture is lively, when it is reused!

Energy when it is Needed, John Frederick

Humor in the philosophy classroom: When is it pedagogically useful and when is it destructive?

When Is It Right To Fight

When is It Art - When is It Design

When is it OK to be SCARED?

Weebly€¦ · Web view2018. 10. 17. · _____ is wet when it is made but becomes hard and strong when it sets

Igneous rocks form when molten rock cools and solidifies. Molten rock is called lava when it is above the Earth’s surface and magma when it is below

The world is hungry for goodness, recognizes it when it

Self-citation : how much? When? Is it necessary? Is it always a crime?

1 DNA Replication What is it? When is it done? What is copied?

SOCIAL MEDIA MINING what is it GOOD for? and when is it good enough?

when is it presentation

Qualitative Research- What it is and when to use it

When is It Time to Heal With

This muscle never stops working… It works when you are asleep… It works when you eat… It really works when you exercise…. What is it????

When is it Myositis?

Florida Employment Discrimination: When Is It Illegal

Scientific method Why is it used? When is it used? What is it?

FINANCIAL LOSS. What is It, And When is It Covered (1)