Gene Blishen: Mobile banking

Gene Blishen & coGene Blishen at the Partnership Symposium on Mobile Banking. Note: Gene’s small Mt. Lehman CU is doing amazing things in the mobile banking arena that billion dollar CUs don’t find feasible.

[Brent Dixon recorded this session on video here.]

Small CU in Vancouver area (3000 members), where 62% of all BC CU System assets are within a 15 minute drive.

Saw the internet would kill faxing in 1994.

Decided to integrate technology in house.

MemberNote came out of staff meeting. Text message sent when member uses card.

MemberNote 2: more variables needed for alerts. Turn on/off, balance included. Builds more based on what members say to front line.

Product is self-managed.

The difference between Push and Pull.

[Condition] {poll} +send alert message+ (a batch process)

Push operates differently: Occurs real time. Emergency alerts can be set up. Extensive logs. Housed at CU. Can tweak it internally based on member feedback.

1.) Transaction occurs: 2. Compared to the variables established by member about notification rules: 3. Alert is sent.

TextUs is second product. Built by third-party, along with 2nd largest CU in Alberta.
Can send a query (BAL or ACT) to short code then sends you a message back.

Released iPhone interface on same day iPhone was released in Canada. Same as TextUs, but on the iPhone.

History of checking account is available on iPhone.

Mobile banking is very broad. too new to have complete definition.

Can make transfers via phone, but not via mobile device yet. Believes it is a huge area for development.

Why is it popular?
Member note: Set and forget

TextUs- seeking information at various times for various reasons.

48% of members have POS/ATM card: 1343 members (must have to have MemberNote)

63% of cardbase use MemberNote

60% are active users (alerts within 90 days)

68% have more than 5 transactions per month

Biggest group using MemberNote: 29% 41-55; next is 28% 25-40; 23% are 56+!!!!! Only 11% are 18-24

Gene asks his members in the 56 years old and older group, “Why are you using this?” The answer: “I hardly used piece of plastic, but MemberNote tells us that the transaction is complete.” They feel secure about that!

Working on Version 3 now: Quantum leap in variables that you can receive alerts on. Will release Feb 2009. Still the only CU using Pull technology.

What does mobile banking do?
Another method to touch your members via SMS.
Gives the CU a unique position in marketplace.
Distribute communications.
Combats card fraud.
Makes you aware of current market conditions and trends.

Use it prudently and with common sense.

Create an engaged member. Transact with the engaged member. Educated your members about your products and services.

Next?
Web-based ATMs.
Chip cards and use of the chips “real estate”
Smart phones that allow specific programs, i.e. ATM locator.

Innovation:
bought all staff an iPhone when they came out.
comes from establishing the right culture at the CU. Not one individual, is collaborative.
Failure creates successes.
iSmart: Everything that his core processor isn’t

Q&A with the Shevlinator:
Q: Alerts: more than just a transaction? Deeper meaning?
A: Natural extension of a phone call follow up. Technology allowing them to do what would happen manually. Member OWNS CU. Do they feel that they own it still? This helps make them feel like they own it and influence what is going on there. They know that no one else has this.

Q: Surveys to determine what they want?
A: They have conversations with the member. They ask them. What do you think? Staff are aware that this is a vital area. What do you want with MemberNote? Biggest thing? Payday. secondary: alimony payment goes through.

Q: ROI projections?
A: The board requires a certain amount of money to be made. Gene and staff does the rest. If they can’t make it, will sell it back to members rather than merge.

Q: Security and privacy concerns? This seems to be the opposite.
A: Members become evangelists for you. MEMBERS GET ALERT BEFORE THEY GET RECEIPT. They are proud of this, of their CU.

Q: Location based services?
A: Sent his devs to SF. With iPhone, location is a given.

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2 Responses to “Gene Blishen: Mobile banking”

  1. Chris Giles Says:

    Thanks for the recap, Morriss! I was wishing I had taken a few notes during his presentation, so you really helped me out. I am going to contact Gene and see about implementing something similar at our CU in Oregon.

    Great seeing you at the Symposium last week. I had an awesome time!

  2. Morriss Partee Says:

    Hey Chris! Great meeting you as well. Glad that this is useful for you. Brent recorded this presentation on video as well. Yes, I agree, Gene and Mt. Lehman CU are doing AMAZING things with mobile banking, things which the rest of the movement should be working hard to adopt/create as well.

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