In our first NCR Terafina Trailblazers feature, we spotlight Kal Majmundar, CTO of Patelco Credit Union ($8.85B, Pleasanton, CA). Throughout their long standing partnership with NCR Terafina, Patelco has deployed consumer deposits and credit cards as well as consumer loans across the digital, branch, and call center channels. See what Kal has to say about digital innovation, Patelco’s journey with NCR Terafina, and their newest product offering Check My Rate
Quick 5 with NCR Terafina Trailblazers – Patelco Credit Union
NCR Terafina Trailblazers was created to focus on clients who continue to innovate in the digital banking world. With an ever-changing landscape that moves at a rapid speed, NCR Terafina hopes to put a spotlight on the financial institutions who are pioneering day in and day out, and trusting NCR Terafina to aid in that journey.
1. What is driving innovation in digital banking right now?
Two big innovation drivers right now are the changing landscape and the evolving expectations that are being set by consumers. Today, there are more options for financial services than ever and this creates all kinds of opportunities for companies to innovate and be competitive.
2. In your role as CTO, how do you identify your key tech priorities in a rapidly changing landscape? Are there any particular questions you ask yourself first?
First and foremost, you always have to align your tech strategies with your business objectives. Focus on building a tech strategy that not only supports, but enhances your overall business goals and objectives.
It’s also imperative to look at key business areas to uncover opportunities where technology can drive and boost value. For example, if your long term objective is to drive acquisition around certain types of products, then your tech strategies should ladder up to that, now and into the future.
As it relates to current tech priorities at Patelco, we’re focused on identifying and understanding our members' needs and aligning our tech strategies with our overall mission to support the financial health and well-being of every member. We’re identifying opportunities where we can leverage technology to bring our members the most effortless and easiest financial services experience at every touchpoint.
3. Patelco has a longstanding relationship with NCR Terafina and you have recently upgraded your consumer lending offering. What prompted this change? Where do you see it providing the most meaningful impact to your members and to your Patelco associates?
Digital channels are an important part of our strategy to acquire new members as well as bring new products and services to current and prospective members. The landscape is competitive and constantly changing, so it's imperative that we are able to constantly innovate. This requires a platform that is open and flexible so we can differentiate ourselves and remain competitive while supporting our members’ financial health and well-being with the best products, services and overall experience.
We found the infrastructure we were looking for in the NCR Terafina platform. The platform allows us to expedite integration with third parties to build a compelling and effortless experience for our members.
4. Can you tell us a little bit about your newest Check My Rate offering? What exactly is it, how does it benefit your members, and how easy is it to use?
Check My Rate allows anyone to instantly pre-qualify for a loan without impacting their credit score. Using very minimal information we can validate who they are and conduct a soft pull of their credit to pre-qualify them for a loan in less than two minutes. This leading-edge experience has been extremely successful with current members while also driving interest with prospective members.
From the consumer or member perspective, it goes beyond pre-qualification and provides options around terms and percentages specific to short- or longer-term needs. It allows people to think about the loan balance, the payment amount, the term and much more. One of its best features is that all of this happens quickly without impacting credit scores.
Another key benefit is that once the amount in the term and the rate are given, the option to continue the application process is presented. This approach eliminates the lengthy and cumbersome application process that consumers typically have to go through to get qualified for a loan.
There was an extremely positive response to our soft launch. Our auto loan application completion rate has increased 16% (pre-Next Gen) to 69% and our application abandonment has dropped significantly. In the last month alone, we saw more than 6,500 inquiries, our highest number so far, and more than 47% received an offer of credit.
We’re also receiving a great response to Check My Rate from our branches. One of our Castro Valley team members shared,“the upfront rate information makes all the difference for our members. It empowers them with the information they need and helps them make the best decisions.
Based on feedback and key learnings from our soft launch, we’re currently exploring incorporating this kind of offering into more of our product, marketing and member channels.
5. When thinking about the collaborative elements that are needed for successful partnerships, what advice would you give other CTOs on how to best evaluate and work with fintech providers?
It all starts with great relationships at various levels of the organization to foster a collective understanding of goals, an alignment on strategies and the ability to collaborate and work together. We want our partners to think strategically and solve problems with us while exploring solutions and executing tactically.
I truly believe success is built from investing in relationships and open communication supported by clearly defined strategies and roadmaps. Ultimately, when we win, our partners win and vice versa.