Consumer affairs

By Robert McGarvey

In the past week, I got exactly $270 in credits on my Amex Plat card and all I did was use the programs Amex has in place and in plain sight.

I have said it before: part of me is irritated that now I have to look around for and, in some cases, specifically enroll in programs to gain the Amex benefits.  Life was simpler when – pre pandemic – I flew enough to think the card paid for itself with airport club access.  The fact that I accumulated points that I could cash in for vacation flights to Europe, which I have done twice that I recall in recent years, sweetened the deal.

Who needed the rest of the deals and discounts that caused my eyes to fog whenever I contemplated them?

Things are different today. I have not flown in 18 months, have not been in a club in a like timeframe, and that put me into a big rethink regarding Plat. I even contemplated downgrading to Gold.  Literally hundreds of dollars in credits that I claimedso far this year – HomeDepot, BestBuy, Goldbelly, miscellaneous streaming video credits – persuaded me to stay put.

But now things are different again, I am traveling, I will within days make use of club access, and in the process I stumbled into very easy Amex credits.

You may already know about them but, as I said, I have no real history of hunting for bonuses. Besides, Amex keeps mixing up the credits – such as the new cellphone protection credit.

Then I noticed an Amex $200 credit to my account for a hotel stay booked via Amex’s Fine Hotels and Resorts tab.  I have a one night stay coming up in Madrid, for convenience sake I wanted to stay very near the airport, and I came upon a Hilton that happens to be in that program.  I booked it and, a few days later, a credit for the full amount popped up in my account.

Oh, and I already had free Hilton elite status with the card.  

I also wanted to book a flight from Santiago de Compostela in Galicia to Madrid and options were few on the day I wanted to travel.  Amex Travel had a flight that worked and it also qualified for a $50 credit.

Then there’s also a twice yearly $50 credit at Saks, just for buying stuff online.

And the Madrid hotel and Santiago flight also qualify for 5X points.

Amex also now credits me for the cost of my NY Times digital subscription and I also now get free cellphone protection on two phones, just by paying the T-Mo charge with an Amex card (which I had already been doing).

There’s also a $15/month Uber credit monthly, plus a bonus $20 in December.  For the past year I have put that credit to use with Uber Eats.

And a $200 annual airline credit at a carrier I designate.  Alas, this year it is American which I have not flown all year and may not fly this year.  But once yearly it is allowed to switch carriers which probably I will.

A rub is that many of the Amex programs require enrollment – the Saks credit for instance as well as the $20/month digital credit and there’s that annual selection of one airline for the $200 credit.

Aren’t there programs I would never use? Lots in fact, such as a $25/month credit at Equinox.

But the $695 annual fee for Plat really is rather easy to cover.

The Points Guy, in a recent piece, claims there is an easy $1400 to be had in rewards.  I would quibble and immediately erase $300 for the Equinox credit and probably I won’t bother with the $179 Clear credit either.

But will I get $700?  Yeah, I will and I am finding that it’s less work than it had been, mainly because I understand the game better.  But I just may get the card effectively for free – plus various club stays.  There’s nothing not to like about that.

by Robert McGarvey

It is time to face up to reality. After months of optimistic forecasts about the return to “normal” in business travel – Panglossian utterances proliferated from the mouths of airline CEOs and their counterparts in the hotel industry – it is increasingly obvious that it ain’t happening. not this year, not next, nowhere in the future we can realistically envision.

Money talks.

A recent Bloomberg survey of 45 large businesses found that 84% plan to spend less on business travel in the post Covid era. Most expected budgets to drop 20 to 40% and to stay dropped.

Why? The c-suite has discovered that we do not need to travel to keep the bottomline climbing. Profits, in most sectors, have been rosy in this era of Zoom calls.

Meantime, a new survey by the American Hotel and Lodging Association found that even business travelers are souring on the idea of going on the road: “About 60% of business traveler respondents indicated they likely would postpone their travel plans until a later date. About 67% noted they are likely to take fewer trips, while 68% said they are likely to take shorter and 66% said they are likely will travel only places they can drive to.”

Not all travel will be nixed, not by the c-suite and not by business travelers. I expect that the travel budgets for sales teams will be restored as soon as we pass through the Delta variant resurgence of Covid-19. I imagine c-suiters and other corporate high flyers will continue to circle the globe too.

What will be cut are many inhouse get togethers and very probably quite a few conferences too.

Ditto trips to offsite trainings. You can learn better email hygiene just as well at your desk watching a Zoom presentation as you would traveling to an offsite meeting at a Virginia hotel.

Travel without a tangible bottomline payoff just is going to be cancelled. But that’s not the only factor.

There are many reasons not to travel and saving money is just one. There also is the sustainability issue and, by any measure, business travel is increasingly seen for what it is – a disaster in terms of carbon and, in 2021, with fires and floods and hurricanes, it is ever harder to deny that climate change is triggering mayhem across the planet. Any organization that wants to be on the right side of sustainability has to be trimming its travel.

Then there are the health impacts of frequent business travel. A 2018 Harvard Business Review article told the sad story: “we found a strong correlation between the frequency of business travel and a wide range of physical and behavioral health risks. Compared to those who spent one to six nights a month away from home for business travel, those who spent 14 or more nights away from home per month had significantly higher body mass index scores and were significantly more likely to report the following: poor self-rated health; clinical symptoms of anxiety, depression and alcohol dependence; no physical activity or exercise; smoking; and trouble sleeping. The odds of being obese were 92% higher for those who traveled 21 or more nights per month compared to those who traveled only one to six nights per month, and this ultra-traveling group also had higher diastolic blood pressure and lower high density lipoprotein (the good cholesterol).”

Frequent business travel may also dull our performance on the job. “Frequent business travelers experience 20 percent less productivity due to jet lag. Business travelers often have less time to recover from journey related stress, which leads to ‘brain fog.'”

The dirty secret is that lots of frequent business travelers plain dislike the grind. The pretense is that it is a life of glamor and excitement but is it really? Maybe it was in 1975. But today? With fist fights over masks, ridiculous arguments about vaccines, hotels without cleaning crews, a shortage of Uber drivers, and the list can go on. Travel just is not much fun anymore and it won’t be anytime soon.

And yet…I remain on track to take a trip to Spain later this year. I look forward to it. I want to go. And it will be fun.

The right trip is a joy. But too much business travel is done just because it gets entered into a calendar.

Me, I am actively erasing future trips.

For instance: although I had been a frequent traveler to conferences and conventions, I have not been to one in a couple years and have no present plans to go. What I get out of them can largely be gotten via Zoom.

I will use the same analytics on all travel possibilities. Whatever travel presents itself to me I will ask, is it necessary? Will it get better results in person?

If the answers aren’t resounding yesses, I will be a no go.

A lot of business travelers feel likewise. Half? I don’t know the percentage but I do believe it is a significant minority who will not only not protest company slashing of travel budgets they will, probably quietly, cheer it.

When a trip is right – and necessary – go. Otherwise I am staying home.,

You know the horror stories – the educational loan burden keeps mounting for many millions and, frankly, the options for lessening that burden are not plentiful.

But there are options. Meet UNest. It’s an app and what it does it help set aside money for a child. It’s flexible too. The underlying law is the Uniform Transfers to Minors Act which allows an adult to set up a tax advantaged savings plan that benefits a minor and the money can be spent on education, but also on a first car or a wedding or many other things.

Who gives also is flexible. Parents of course but also grandparents, other relatives and just plain friends.

Earnings in the account are tax advantaged.

You never heard of the UTMA? Join the club. It is not widely known legislation. But, executed smartly, it can deliver real benefits to a child.

On the podcast to tell us about UNest are Peter Mansfield, CMO, Erin Matta, VP partnerships, and Alison Silverstein, CEO of KidFund, a savings app that recently was acquired by UNest.

Where do credit unions come in? UNest already is working with one credit union to put the UNest app in the hands of members and it is looking for more credit unions to partner with.

Note, too, UNest sees the real power of its app as best serving the middle class and upper middle class – that is, the credit union membership. The app helps with setting savings goals and the ultimate goal is success.

Listen up.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

by Robert McGarvey

I don’t recall the first time I wrote up a warning against using public Wi-Fi when traveling – and that means hotel, airport, restaurant, public transportation (subways, busses) coffee shop, even inflight Wi-Fi. Probably 10 years ago. Maybe longer.

And yet public Wi-Fi sites multiply – one count finds over a half billion globally. That’s because we use it. One survey found 18% of respondents use it more than once a day.

Definitely, too, usage is upped among travelers. When I ask people if they would use the public Wi-Fi up the street from their home the reaction displays similar enthusiasm to what I’d get if I asked their willingness to use a public toilet in the Covid-19 era. But those very same people, when asked, acknowledge they do use public Wi-fi when they travel because “what are my better options?”

We’ll answer that question momentarily – you do have a better option – but, first, understand I now have a heavyweight that is issuing the same stern warnings about public Wi-Fi as I have been. That’s the NSA – aka National Security Agency aka the Puzzle Palace — which now has broken its cover to warn about public Wi-Fi and the risks it poses to us and our employers.

In a recent information sheet, NSA pulls no punches: “Avoid connecting to public Wi-Fi, when possible, as there is an increased risk when using public Wi-Fi networks…. If users choose to connect to public Wi-Fi, they must take precautions. Data sent over public Wi-Fi—especially open public Wi-Fi that does not require a password to access—
is vulnerable to theft or manipulation.”

What that says – put in simple terms – is don’t use public Wi-Fi because whatever data you enter is easy pickins for savvy cyber criminals.

Sure, if you want to grab a baseball score from ESPN, or a stock quote, by all means use public Wi-Fi if that’s easy. It probably doesn’t matter. But if what you want to do is send business email or access files on your company’s server or even research prospects on LinkedIn, the strong advice is don’t use public Wi-Fi.

There are thousands of white papers online documenting how hackers hack public Wi-Fi. For them it is rather straightforward. There even are automated tools to speed up the process for the inexpert hackers.

NSA elaborates: “Accessing public Wi-Fi hotspots may be convenient to catch up on work or check email, but public Wi-Fi is often not configured securely. Using these networks may make users’ data and devices more vulnerable to compromise, as cyber actors employ malicious access points, redirect to malicious websites, inject malicious
proxies, and eavesdrop on network traffic.”

What the NSA is saying is that when you are using public Wi-Fi you are a fish in a transparent fish bowl and the hackers’ eyes are on your every keystroke. The password to your employer’s server – it’s theirs. The login to your email – it’s theirs. The login to your bank account – yep, that’s theirs too.

All because you took what seemed the easy – and free! – access lane onto the Internet Superhighway and that is what public Wi-Fi is for many millions of us.

What if public Wi-Fi truly is your best option? Here’s NSA’s advice: “If connecting to a public Wi-Fi network, NSA strongly advises using a personal or corporate-provided virtual private network (VPN) to encrypt the traffic.”

Not all VPNs are good. Not all are even trustworthy. Choose a VPN cautiously. Here’s a list of recommended providers from TechRadar. Here’s CNET’s list.

Won’t a VPN slow your speed? Probably, at least a little. But that is a price worth paying for the enhanced security a good VPN provides.

Even with a VPN in place NSA’s “don’t’s list” includes these about public Wi-Fi: *Do not enter most sensitive account
passwords on sites/applications. *Avoid accessing personal data (e.g., bank accounts, medical, etc.).

That’s good, cautious advice.

Either way, if you really insist on using public Wi-Fi, do it with a VPN. You don’t have guaranteed safety. But you are pretty secure.

Personally, however, I still prefer to use my cellphone to create a hotspot that I connect an iPad or laptop to. The security is quite good.

Alternatively, since I use a Google Pixel phone on Google FI network, an option I have set up is to use a Google VPN when surfing via Wi-Fi. I use that feature often.

This is the reality: safer surfing is yours if you want it.

But with all the cyber criminals out there, just do something to stay safe.

By Robert McGarvey

 She’s smart. She has around 20 years experience at Inclusiv, the association for community development financial institutions and its predecessor organization. And she has put a lot of attention on African American Credit Unions.  Will they survive? Does it matter?

Meet Pamela Owens, a SVP at Inclusiv and she comes with a lot to tell us.

As for African American credit unions, they will survive and, yes, it definitely matters, says Owens in this podcast.  She tells why.

She also gives a grade for credit union industry efforts regards Diversity, Equity and Inclusion efforts (and know she is not an easy grader).

Along the way we talk about progress African Americans have made in regard to credit union employment – and the progress they need to make in regard to C-suite employment.

Credit unions, unlike banks, are birthed with a moral reason for their existence. Banks exist to profit their shareholders.  Credit unions – especially CDFIs – exist to bring financial services to the underserved and that is indeed a reason to get up in the morning.

If you want to feel good about being in the credit union industry this is the podcast you want to listen.  Of course you will also get some to-do’s – but this is work that isn’t going to be finished soon.  

Listen up.

 Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

By Robert McGarvey

As sure as we are now – in fits and starts – getting back on the road, scammers, flimflam artists, and thieves are right behind us and now they have an edge because many of us have lost our instincts when it comes to being suspicious of what might be criminal activity.

Eighteen months ago most of us would have have spotted a travel related scam before it bit us but now we are fresh innocents and you can bet the hucksters are hungry for our dough.

Matters are so sinister that the Better Business Bureau has rushed out a warning headlined: BBB Scam Alert: Beware of hotel scams.

Time for a refresher on road smarts.

Phishing.  Enormously popular with criminals today is telephone phishing where, usually, the scam is that “this is the front desk, there’s a problem with your credit card, could you give us the number again?”  Often the call comes in fairly late at night so you may be drowsy too and in PJs.  Give over the number and expiration date and, oh, will you verify the spelling of your name?  And that will present the criminal with a credit card that can put to immediate use buying gift cards and other cash equivalents.

The antidote: No matter how late at night it is, say you will be down to the front desk in a few minutes and hang up.  At this point you have three options: Do nothing whatsoever, just assume the call was a scam. Or actually go down to the desk and don’t be surprised if the staff has no clue about this issue with your card. Or call the front desk and ask, is there a question about my credit card?

Food Scams.  This actually is a new one on me but it makes perfect sense.  The BBB explains how it works: “Make sure the menus left in the hotel room are authentic…. Scammers will distribute fake menus to rooms with phone numbers that connect the caller to them instead of the hotel or a real business. They will collect the callers credit card information over the phone then never deliver food.”

I salute the cleverness of the criminals.  Make up a flyer, insert fake quotes (“the best pastrami in Phoenix,” Pete Wells NYTimes), and for sure calls will come in.

Word of caution: before ordering with a restaurant unknown to you, check Yelp to see if it in fact exists. While you are at it, skim the reviews.  I personally find Yelp of hit or miss utility – but it will definitely help you detect a restaurant that does not really exist. And you may even get some useful insights about the joint’s quality or lack.  (Hint: there is no great pastrami in Phoenix. The nearest is Langer’s in LA.)

Fake WiFi: They are called “rogue access points” and what this refers to are WiFi networks with names like “Free + Fast WiFi” or “Your Hotel’s Best WiFi.”  The problem is that a tech savvy criminal can spend maybe $100 and create a WiFi hotspot that exists mainly to collect personal information from users, possibly to download malware to their computers.

This is very bad and, as I said, it is also very cheap for the crook to perpetrate.  It often surfaces at meetings, convention centers, airports and, definitely, hotels especially public areas.  How to detect it? Usually it is very slow but, hey, isn’t that the norm for hotel WiFi even when we are paying to access it?

My advice is this: don’t use hotel WiFi or airport Wifi at all.  Ever. I use a hotspot that I create with my phone. (In Android, go to SETTINGS/Network and Internet/Hotspot. Similar works on iPhone)  It takes literally seconds to create, in most cases its speed is comparable to that of a hotel network (sometimes faster), and, yeah, in many cell plans you will pay a few bucks for data in a two hour session but that is money well spent if it keeps you out of the clutches of these cyber criminals.

This all sounds simple? It is. But criminals also know we are out of training and no longer instantly see risks when before we would have.  

Just remember: they are out to grab your money and if we have lost our cautions we are easy prey.  Stay alert, stay safe, safe travels. 

by Robert McGarvey

Go to the website for Otomo and here’s what jumps out at you: “Be the money platform people love. Turn any account holder into an avid user with autonomous personal money management.”

Read it again.

What Otomo is about is a revolution in our digital money management and here is a fact: on a fundamental level, online and mobile banking are not substantially different from what debuted in the mid 1990s.  

Another fact: PFMs are not significantly more engaging than they were when they were introduced a generation ago.

Otomo’s plan is to revolutionize all of that.

To rethink how we bank.

And, yes, to make it all much more engaging – and fun! – than we are accustomed to.

On its LinkedIn page, Otomo says about itself: “Picture a world where your money knows where to go as soon as it hits your bank account, organizing itself in real-time. Sounds like something out of Blade Runner? It’s not. “Otomo is delivering on banking’s ultimate promise of hyper-personalized cash management tools today. We deliver our service directly through your favorite financial institution or money app. In other words, you’ll quickly be able to offer smart banking that can provide engaging, long-lasting, and meaningful experiences to your customers.”
Ready to hear more about the Otomo revolution? In this podcast you will hear at length from Khellar Crawford, CEO and co-founder of Otomo and you will also hear why he founded it and why your credit union just may wat to explore deploying it to your members.
Face it? Members increasingly want more from their digital banking experience than they are getting.  Otomo just may be what they are hunting.
Listen up.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

by Robert McGarvey

Know that I am a travel bag cheapskate. I doubt I have spent over $1000 on luggage in a lifetime of travels. For the past eight years I have relied on a carryon Travelpro rollaboard that cost $85 and it has been a reliable companion but now as new travel looms I had to admit it had gotten shabby.

I had also grown annoyed with the clatter of the aging wheels and a propensity of the rolling bag to tip over when I am moving at speed.

Time for a new bag.

I had non negotiable requirements. It had to be cheap and it had to be carryon (22″ x 14″ x 9″). Otherwise I had no requirements. I have mulled this issue in print for some years and I thought my preferences were settled. Hah.

What I bought surprised even me.

I bought an Osprey Fairpoint 40 men’s bag – 40 liter capacity – and here’s the deal: no wheels but this is a backpack. Price: $137 at Amazon.

But this is not just any backpack.

A huge difference between the Osprey Fairpoint and traditional backpacks is that the latter have a big cavern where you stuff your belongings while the Fairpoint has a clamshell opening so what you have packed is immediately visible. Hunt for fresh socks with a typical backpack and you may wind up dumping everything out on a nearby bed. With the Fairpoint just unzip the thing and what you are seeking is right there.

Everything about the Osprey is well designed and thought out. “Also great,” ruled the NY Times’ Wirecutter reviewers who also point out it comes with a lifetime warranty which is surprisingly common with luggage (Patagonia, Briggs and Riley, etc.) but it nonetheless is a nice Osprey perk.

Many years ago I bought a backpack carryon on bag from a travel gear purveyor and frankly it was poorly designed junk. The load kept slipping and sliding around inside the bag as I walked (usually around an airport and a city, not up a slippery hiking trail). I soon gave it to a friend who admired the quirkiness of it but it cannot possibly have provided much useful service.

The Osprey is better designed. It is designed both to be a straightforward piece of carryon but also for a backpacker who wants a compact bag. And it even has a laptop sleeve. as well as compression straps to keep contents from shifting. There also are multiple organizational inserts for sale – such as a three cube set for $38 – that allow for customization of the storage.

Am I comfortable with a backpack? That is a good question. Many find them to be very uncomfortable and, initially, I did too.

In some years of walking and hiking around Phoenix I have grown accustomed to wearing a backpack – usually a compact Fjallraven that I have stuffed with water bottles. You don’t want to walk long distances around Phoenix without water. A backpack doesn’t bother me anymore.

Is the Fairpoint genuinely good for hiking? Probably, for serious hikers, purpose built hiking backpacks are a better option when you want to walk most of the Appalachian Trail. I have a 10 year old LL Bean AT 55 pack (60 liter capacity) which is what I would take if I decided to hike the Pacific Crest Trail. The Osprey Fairpoint – many reviewers agree – is better suited to day hikes where you will be bunking in hotels not campsites.

That’s me. I don’t plan to jam a sleeping bag and a cook stove in the Osprey and it was never designed for such loads. What I plan to use it for are light loads – under 20 pounds including an iPad – and for that weight the Fairpoint is a match. I have heard some say they crammed 40 pounds in it but, frankly, I think a well chosen expedition backpack is more appropriate for comfortably and safely lugging heavy weights.

That light weight load of the Osprey on my back is also why I think I won’t mind carrying the weight instead of rolling it. It just isn’t that much to grumble about.

Besides, in carrying my sack I will be fulfilling a half century desire to live novelist Jack Kerouac’s vision: “I see a vision of a great rucksack revolution thousands or even millions of young Americans wandering around with rucksacks, going up to mountains to pray, making children laugh and old men glad, making young girls happy and old girls happier, all of ’em Zen Lunatics who go about writing poems that happen to appear in their heads for no reason and also by being kind and also by strange unexpected acts keep giving visions of eternal freedom to everybody and to all living creatures ….”

Jack Kerouac, The Dharma Bums

Money woes.

It sounds like the title of a blues song but, ask Peter Rice, Chief Banking Officer at Workers Credit Union in Massachusetts, and he will tell you it’s not an oldie but today’s lyric and he can prove it with a recent Central Mass survey that found 65% of the residents said they were unsure, stressed, or extremely stressed about money.  

Ouch. that’s a lot of anxiety but, said Rice, it’s exactly a place where a credit union could and should help and, in that way, it will also gain a competitive edge.

In the process, Workers has introduced a new branch concept – called PlanIt – which, get this, features an interactive hologram named Olivia and a short, perky robot named Pepper.  

I don’t kid you.

That’s because the Workers hope with its new branch is that it will be welcoming, inclusive, but also will help inspire members to achieve their personal financial wellness.

A stat that hit Rice like a brick is that most of us – even the seemingly well off – don’t have $400 in ready cash to deal with financial emergencies and yet this past 18 months have been a text book illustration of how the unexpected and unimagined can become our reality.

We need to be financially well to deal with these speed bumps in our life highway.

A goal of the PlanIt centers – Workers has opened three and has plans for more – is to help members to feel empowered and also to get them more engaged with the credit union.

And, yeah, people do come into the branches to interact with Olivia- who is multi lingual and very helpful – and also with Pepper who is cheery.

Is this the future of the credit union branch?

Is this how a credit union can win the battle for the member?

Expect to hear challenges to credit union orthodoxies in this podcast.  Rice thinks into the future and in this podcast he tells his route to getting there. By the way that accent you hear is not a rogue Boston lilt. It’s from Rice’s native Ireland.  

Listen up.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto

Ask Kavita Singh – a vice president at payments company Payrailz – what’s a smart way to differentiate a credit union in a a competitive marketplace that is ever more cluttered and her answer is succinct: AI.

As she wrote in a recent Credit Union Times article, “Credit union leaders must go a step further and find a true strategic differentiator. This can be found via artificial intelligence.”

A few years ago AI was akin to The Matrix – kind of a cool but spacey idea and, truth to tell, none but the very biggest credit unions even had it on their “learn about” lists.

That’s changed.

AI is suddenly everywhere.  Call your cellphone provider and a machine will answer.  Ditto at the big credit card companies.  Also airlines. And down a lengthening list of institutions that, increasingly, turn to machines to find information, answer customer questions, solve problems.

In Singh’s view, credit unions are ideally positioned to win at AI, mainly because they already have bushels of member data and that data, properly used, will tell how best to serve this member’s needs right now.

Singh gives this for instance: “For example, a member may pay a particular bill around a certain time of month. AI will learn this behavior and begin to proactively alert, or remind, members in advance of the pending bill.”

Think about that. A simple nudge may help save a member a late fee and that is a way to build member loyalty.

AI can also predict in advance when a member is about to bounce a check and that’s not black magic. It’s knowing the account balance and also knowing what bills are likely to come in soon and if the numbers don’t add up that member could be prodded to shift money from another place into an account to cover the incoming bills.  That means more late fees saved.

Think too about how good companies like Amazon and Netflix have gotten about predicting what you want to consume next.  They are not guessing.  What they are doing is cranking in past consumer behavior and taking a very educated guess about what this consumer wants next.

AI is changing our lives and it will be a factor in what credit unions thrive (and which don’t).

You want to hear Singh on credit unions and AI.

Listen up.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

And like this podcast on whatever service you use to stream it. That matters.

Find out more about CU2.0 and the digital transformation of credit unions here. It’s a journey every credit union needs to take. Pronto