Have You Fine-Tuned Your E-Channels Lately?

CUNA Technology Council
October 18, 2004

Since credit unions began introducing Internet account access in the mid-to-late 1990s, member acceptance has grown to the point that e-channels are now considered a basic service. Members' expectations for quick and convenient financial services are based, in large part, on the 24/7 accessibility afforded by online branches.

Now that the technology behind Internet branches is well established, many credit unions are focusing their efforts on enhancing functionality by giving members the opportunity to handle basic business online, such as ordering checks, accessing e-statements, and retrieving check images. Quick decisions on Internet loan applications have also become essential as car buyers use the Internet to shop rates and apply for loans in increasing numbers.

Online bill payment services are gaining steady ground, and billers are finally making headway in presenting bills electronically through account aggregation services. In addition, credit unions can now offer members the ability to transfer funds electronically between accounts at different financial institutions via new functionality offered by account aggregation vendors and A2A (account-to-account) vendors.

Early interest in conducting financial transactions on wireless phones and PDAs is waning as the technology supporting wireless networks lags behind. But as cell phone companies shore up their networks and the technologies in cell phones, and PDAs and laptops converge into new handheld devices, the demand for wireless connectivity will likely resurface. Another innovation whose day has apparently not yet dawned is the e-signature, though some credit unions are moving toward another variation on signing on the dotted line by installing digital signature pads on their teller lines.

Continued interest in at least some of the principles behind customer relationship management and the efficiencies gained in channel equality are driving ongoing efforts to streamline operations and capture and store data for use in every delivery channel. The goal of these efforts is to personalize interactions with members regardless of the channel they use to access the institution. A continuous challenge for credit unions is the upgrading of e-channel functionality and improving navigations and nomenclature used in Internet branches to allow members to customize their online experience.

This executive summary is from a white paper by Karen Bankston entitled "E-Channel Check: Credit Unions Fine-Tune Online Branch Functionality." Read the complete paper at www.cunatechnologycouncil.org/research.html.