8
INDUSTRY FINDINGS
WEBINAR
11/27/2019
Insights
Q&A
Roadshow
Overview
Technology
Landscape
Partner Strategies & Initiatives
INDUSTRY FINDINGS
WEBINAR
Insights
Q&A
Roadshow
Overview
Technology
Landscape
Partner Strategies & Initiatives
AGENDA
Roadshow Overview
1
Partner Strategies & Initiatives
2
3
Insights
Technology Landscape
4
5
Technology Roadmap Update
6
Q&A
Welcome
& Thanks for Joining
In today's webinar we will be sharing insights and findings gathered during our 2019 Technology Roadshow as well as a brief update on our Lending Technology Roadmap.
Welcome
Andrew Pastoric & Grant Phillips
Your goal is our goal
As a trusted leader, we will continue
to drive innovation for partners and members alike, through research, analysis and industry relationships to accelerate your strategy and time to market.
Our Commitment
Lending technology for tomorrow, today.
#connect #collaborate #grow
Roadshow Overview
We met with 40% of our credit union partners across the country along with with key provincial central bodies and fintech industry players to...
Roadshow Overview
Connect
with key technology contacts at partnered credit unions within the industry to foster open communication regarding technology and to develop deeper relationships.
Connect
Share & Discover
opportunities to open up two-way dialogue for the purpose of sharing insight, roadmaps and strategies for our mutual benefit.
Share &
Discover
Align & Validate
that our technology roadmap and refreshed “technology as a business” strategy aligns with partner needs and goals.
Align &
Validate
Partner
Strategies & Initiatives
Partner
Strategies
Credit unions across Canada are looking for cost effective ways to expand delivery channels, reach and product offerings, while enhancing operational efficiency and member experience.
Top Needs & Considerations
Recognizing that technology is core to their business, credit unions are seeking partnerships with fintechs to help them achieve their goals.
Considerations
Omni-Channel Approach
Ease of Integration
Member Experience Focus
Commitment to Innovation & Partnership
Omni-Channel Approach
Partners are taking an omni-channel approach to sales and member engagement to provide prospects and members with a seamless banking experience, whether they're online or
in-branch.
1.
Ease of Integration
Integration to core systems is critical to drive efficiency.
A key challenge partners face today is that existing systems lack the integration to drive efficiencies and seamless experience for members and staff.
2.
Member Experience Focus
Institutions are looking to mirror the simple, transparent, and easy shopping experiences provided by retail e-commerce.
3.
Commitment to
Innovation & Partnership
Long-term financial viability and commitment to continuous innovation go hand in hand.
4.
Key Roadmap Priorities
Priorities
2019
2021
Accelerate Digital Strategy
Future Digital Banking Platform Decision
The long term vision is an automated, digital,
online experience from first interaction to disbursement/funding.
To properly control the member experience, the need for credit union platforms to be able to easily integrate to third parties becomes increasingly important.
Digital Banking Implementation
Credit unions are looking to differentiate
2020
Credit unions have taken steps to centralize the member experience within their digital banking platform but are still striving for an integrated fluid experience through all channels.
Insights
In today’s world of fintech start ups the race is on for best in class digital customer experiences.
Our
Insights
Digital Lending Long Term
It's the convenience, accessibility and choice of channel that customers expect in the digital age
Demand
"Hey Siri, show me my account balance"
Business Drivers & Objectives
Revenue Growth
Objectives
New Member Acquisition
Efficiency Ratios
What do you want to achieve?
Key Considerations
- Don’t just go digital for the sake of going digital
- Know your business drivers, objectives, KPIs and long term strategy around digital lending
Considerations
- Walk through the lending journey from both a member and a lender/advisor perspective in current state and in future state
- Consider all lending use cases and the integrations and capabilities required
- Complete thorough 3rd party partner due diligence on regulatory and compliance, cyber security, financial viability and stability, roadmap, source code and IP ownership
Let's explore a journey map
1. Lead Generation
3. Data Gathering
5. Acceptance
Customer comes
in contact with
your brand/offering
via promotion
Lender collects
financial information
from customer inputs
Customer accepts the approved credit application and becomes a member
CRM
Communication Channels
2. Discovery
Marketing Channels
4. Decision
Communication Channels
Indirect Lending Channels
6. Application Funded
Indirect Lending Channels
Digital Lending
Indirect Lending Channels
Customer contacts
your institution to
learn more and begins
credit application
Lender finalizes structure of the deal and provides credit application decision
(approve/decline)
Member application committed and funded
LOS
Account Opening
Communication Channels
CRM
Communication Channels
Digital Lending
Communication Channels
Indirect Lending Channels
ECM
Digital Lending
LOS
Digital Lending
Identity Verification
LOS
CRM
LOS
Income Verification
CRM
Banking System
CRM
Decision Engine
Insurance Needs Analysis
Banking System
ECM
CRM
ECM
Form Presentation/Signing
Insurance Decision
Insurance Commital
Identity Verification
Fraud Detection
The institution side
is becoming more complex
The Risk of
Commoditization
in the Digital Age
Core Strategic
Focus
The rise of digital lenders has placed new pressure on traditional FIs to offer similar experiences and capabilities online.
Initiatives 2
Core Strategic Focuses
Grow business
1
while reducing operational costs and increasing efficiency
Helping the communities
2
you serve, thrive
Risk
Risks
Digital pressures
1
placed on FIs to offer similar experiences and capabilities online
Commoditization of Lending
2
Key Considerations
Key Considerations
1
Non-traditional digital lenders and money managers
focus on discrete use cases
Credit unions are trusted
2
local advisors for financial services
Credit unions must remain customer-centric
3
in all strategic initiatives with focus on strengtheningcustomer relationships
Technology Landscape
Here is a summary of the largest providers for each of the major technology platforms used within the lending solutions ecosystem.
Tech
Landscape
Major 3rd Party Systems
1
Banking System, Digital Banking, ECM, CRM, Account Opening
Consuming 3rd Party Services
2
Credit Bureau, Income Verification, DIgital Signature, ID Verification etc.
Banking System
Providers ranked by most in use
DNA Celero
Ovation
1
5
DNA Fiserv
WBDK
2
6
Banking System
Infonancial
RFS
3
7
Temenos
57% of CRIterion users
are utilizing DNA
4
Digital Banking
Providers ranked by most in use
Member Direct (Central 1)
1
Forge (Central 1)
2
Digital
Banking
eBankIT
3
New entrant
75% of CUs interviewed on the roadshow are currently using MDi are making a future platform decision in 2019.
Kony/Temenos
4
New entrant
Electronic Content Management (ECM)
Providers ranked by most in use
Hyland Base
MS SharePoint
1
5
Doxim
FileNet (IBM)
ECM
2
6
Synergy (Jack Henry)
3
Today 25% of CUs surveyed do not have a ECM today, but have identified it as a future initiative under consideration.
Fiserv DDS
4
Customer Relationship Management (CRM)
Providers ranked by most in use
Doxim
Temenos
1
5
New entrant
MS Dynamics
CRM
2
Salesforce
3
60% of credit unions do not have a Customer Relationship Management system in place today; however, 100% of survey respondents have this as an initiative on their immediate roadmap.
Pivotal
4
Account Opening
Providers ranked by most in use
Thirdstream
Doxim
1
5
ASAPP
2
Account
Opening
GROW
3
Today 44% of CUs surveyed open accounts directly in the banking system in-branch and 67% do not have a self-serve online solution.
Open Anywhere (Central 1)
4
Consuming 3rd Party Service Providers
High Ratio Mortgage Insurance
Digital Signature
Credit Bureau
Address Search
1. DocuSign
2. eSignLive
1. Equifax
2. TU
1. Canada Post
2. Google
1. CHMC
2. Genworth
3. Canada Guaranty
Provincial Property
Assessment
Income Verification
Fraud Detection
ID Verification
1. Equifax
2. Flinks
1. Equifax
2. TU
1. SAMA - SK
2. BC Assessment Online
3. MyLTSA
1. Equifax
2. TU
3. Flinks
4. Jumio
5. SecureKey
6. IDology
Lending Technology Roadmap Update
3 year Lending Tech Roadmap
2022
2020
2019
2021
Small Business and Agri
(customer and institution facing)
Retail Secured Lending
(customer and institution facing)
Retail Unsecured Lending
(customer and institution facing)
2020 Retail Unsecured Lending Targets
Final Release
November 2020
Beta Release (Pilot)
July 2020
Alpha Release
May 2020
Integration Sprint Goals
2019 - 2020
Insurance
CRM
Form Population
Membership Creation
Income Verification
Auto-decisioning
9
7
3
5
1
2020
2019
2020
2019
This is the point of
Alpha release
This is the point of
Beta release
Fraud Protection
Digital Signatures
Credit Bureau Pull
Banking System Committal
ID Verification
10
4
6
8
2
2020
2019
2020
What's Next?
Technology Microsite
Exclusive Access
Q1, 2020
Technology Roadmap
Update Session
Q1 ,2020
Questions?
email: andrew.pastoric@valeyo.com
Q&A
Andrew Pastoric & Grant Phillips
Thank You for Attending!
webinar recordings will be sent to you next week.
Q&A
Andrew Pastoric & Grant Phillips