SAN DIEGO – With a reach for both loans and investment products– mostly via the Internet – the march is on this month by a groupof widely-dispersed credit unions to make greater use of automatedadvice technology. Indeed, two weeks ago three large CUs – SAFE CUin Sacramento, Patelco in San Francisco, and Educators CU inRacine, Wis. – debuted on their Web pages the latest online adviceproduct aimed at generating retail investment leads. A fourth, SanAntonio CU in Texas, posted the product in January. “We're lookingto get 1,000 qualified referrals on an annual basis,” forecastDavid F. Roughton, chief financial officer of the $1.1 billion SAFEin Sacramento which like the other CUs in the three states areacquiring its advice tech program, called “Wealth ManagementAssistant” from Experion Systems Inc., a Maynard, Mass. vendor. Atthe same time, the $1.7 billion Mission FCU here said it is alreadywitnessing a spike in loans and inquiries from Experion's “LoanAdvisor” program after launching it last December. The program issuccessful so far, said Mission, because the system, using aquestion and answer on-line format directing members to ideal“decisions,” relies on providing high quality advice and “trust.”“We're all fighting low margins, but credit union managementseverywhere are looking to distinguish themselves in the market bybuilding that special trust with members,” explained Ronald Martin,president of the 125,000 member San Diego CU which has been one ofthe nation's cheerleaders for automated advice systems. Indeed,Mission Federal emphasizes the advice tech system solidifiesretaining a “comfortable” relationship with its members noting thatin a 10 week period more than 3,000 Mission members received adviceunder the Experion system and these “were quality credits.” Underthe system, done online, by phone or in person at branches, membersrespond to a series of questions aimed at directing them to theright product “that meets their individual needs.” “Sinceimplementation we have averaged 322 Web applications per monthrepresenting about 27% of our total consumer applications,” saidSherry Carr, vice president of consumer lending at Mission. Ascompared to a year ago, Web applications increased by 30%, shesaid. Like Mission, other CUs that have purchased various Experionprograms particularly on mortgages contend they like theconsistency in reducing training and call center expense. In itspromotional material, Experion claims that its “technologysolution” provides a platform to help members get consistent advice“whether the inquiry is made at a branch, the call center, over theinternet or in consultation with a product expert.” Those “experts”are more productive, claims Experion, “because they are no longerexpected to answer every product related inquiry.” “Things aregoing 24 hour Web,” observes James Henderson, senior vice presidentat the $680 million Educators in Wisconsin, that state's secondlargest. Educators signed up with Experion last year and in Marchlaunched loan, deposit and IRA advisor programs culminating in theApril 1 startup of the investor-based wealth management. The RacineCU has been using loan advisor for first mortgages “and is gettinga good response,” said Henderson though it's too early yet to track“hits” and loan closings. Many of the CUs using Experion productsare active in Members Gateway, a 22-CU limited liabilitypartnership based in South Bend, Ind. and which shares and plotsindustry strategy on new products. In that group have been BellcoCU in Denver, First Tech CU in Beaverton, Ore. and San Antonio CUplus others. Ross Blair, Experion's president and CEO, acknowledgedthat advice tech software, because of it being “cost prohibitive,”may be limited for the time being to CUs above $250 million inassets CUs. “But we expect penetration to expand and in three tofour years become as pervasive as online banking,” he predicted.Some users have noted there are “challenges” in making final saleclosures. Larry Biernacki, senior vice president at San Antonio CU,said the inquiry system continues to work “very well” but the TexasCU is in the process of “making the fulfillment process seamless”and on that front “we are exploring better ways to do it.” Still,on “Wealth Management,” SAFE in California said the investmentproduct is already providing many “hot leads” and doing itefficiently, according to Roughton, the CFO who also is presidentof SAFE Financial Services, a retail investment subsidiary whichuses XCU Capital, Carlsbad, Calif. as its broker dealer. “Theinformation is put into a format that is awesome for us” in termsof calculating member interest and potential on investmentproducts. -

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