Web Services: It is not IF, it is WHEN!
Download as PPT, PDF1 like451 views
The document discusses the growing use of web services by financial institutions and credit unions. It notes that around 10-12% of financial institutions offered web account opening in 2010, but that number is expected to grow significantly in coming years. The document also outlines some of the key benefits of web services for credit unions, including increased growth, efficiency gains, cost reductions, and the ability to better serve younger members and gain new members through convenient online services. It provides an example of one credit union that was able to triple its mortgage volume with only a two-person staff by implementing a web-based application process.
![THANK YOU Gary Hess President, RTE Financial Services 1-320-281-9765 [email_address] www.rtefs.com](https://image.slidesharecdn.com/webservicescuconfseptember2011-111011135959-phpapp02/85/Web-Services-It-is-not-IF-it-is-WHEN-48-320.jpg)
Web Services: It is not IF, it is WHEN!
- 1. WEB SERVICES: It is not IF, it is WHEN! Credit Union Products and Services – Sep. 2011
- 2. Agenda Survey Technology Today The Market Web Services
- 3. Target Field
- 4. Survey How many have a web service at the credit union today?
- 5. 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
- 6. Lieberman Research July 2010 Total Institutions Surveyed 46% evaluating online applications today 63% plan to implement by 2012
- 7. 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
- 9. Members
- 10. Credit Union Membership 1980 – 43.9 million 1990 – 61.6 million 2000 – 79.8 million 2010 – 91.4 million
- 11. U.S. Census Bureau Predictions
- 12. 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.
- 13. Why Web Based Banking?
- 14. (negative) Economic Factors Outside forces impact on your bottom line: Share insurance Corporates Overdraft services Interchange fees Regulatory costs
- 15. Implementation Reasons Better serve borrowers Efficiency Wave of the future Increase volume
- 16. 2011 WEB SERVICES Is it the same as Online Banking, Or is it MORE??
- 17. Strategic Direction Online Banking – Convenience for the member Web Services = GROWTH + EFFICIENCY
- 18. 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
- 20. 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
- 21. 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 $18,562.50 Reduced Systems & Administrative Costs Integrated Member "Switch-Kit" Integrated Mortgage and Business Lending Module Robust Reporting Capabilities Paperless Workflow Costs Savings
- 22. Cross Selling ROI ROI Income/Savings $322,500.00 At $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
- 23. Account Opening
- 24. Disclosures
- 25. Data Collection
- 27. Funding
- 28. Switch Kit
- 29. LENDING
- 33. Cross Sell
- 34. Cross Sell
- 35. MARKETING
- 40. Process Changes
- 41. 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
- 42. Yesterday’s Process Stand Alone Personal Computers Networked Personal Computers Web Applications Print and Submit Complete and Submit Paper and Physical Signatures
- 43. Today’s Process Web Banking Member data collection Product selection Member verification Funding Paperless Signature Key Pads E - Signature
- 45. 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!
- 46. Credit Union Benefits Productivity Gains Cost reductions A system that pays for itself
- 47. 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
- 48. THANK YOU Gary Hess President, RTE Financial Services 1-320-281-9765 [email_address] www.rtefs.com