Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

20) #ExponentialInsights: The Great Pause: Why Now Is the Time for Transformation w/ Samantha Paxson

ABOUT THIS EPISODE

The pandemic has given us a chance we never get in this fast-paced world. 

“The Great Pause”

A once-in-a-lifetime chance to stop and assess what we’re doing.

 Samantha Paxson, Executive Vice President/Chief Experience Officer at CO-OP Financial Services, says your financial brand should take advantage of it. 

She joins me in today’s episode and we discuss:

-The Great Pause and why it’s the best time for transformation

-How to build trust with your customers

-How to increase engagement and, ultimately, market share in this time

You can find this interview, and many more, by subscribing to Banking on Digital Growth on Apple Podcasts, on Spotify, or here.

We never had a time in hisory or atleast in our lifetime, where we've really been able to just stop and beable to assess what are we doing. You were listening to banking ondigital growth, with James Robert Lay, a podcast at impowers financial brandmarketing sales and leadership teams to maximize their digital growth potentialby generating ten times more loans and deposits. Today's episode is part ofthe exponential inside series, where James Robert Interviews, the industry'stop marketing sales and FINTECH leaders sharing practical wisdom toexponentially elevate you and your team. Let's get into the show, welcome to the show Sam. Thank you getto be here well, when you and I talked to kind o frame up some thinking aroundthis conversation, the world was a very different place. A lot has transpiredover the past few weeks and you've been busy leadingyour team leading your organization. But what is good? What is good rightnow for you, as you've worked through this, this new normal that we're alltrying to pick through together a there's a lot of nigs. I mean I rentan article in medium. The other day, describing this time on the Great Pasand if you hever, reard the artile it', if it's really good, Ol, great pauseand basically whet it sang, is that we never had a time in history or at leastin our lifetimes, where we've really been able to just stop and be able toassess what are we doing? How can we be doing it better as we've been kind ofgoing through Moslo Hardan, neds, TA, Arla Food? You know at kind of view ofthe world where we've been fiding fires.

All of this change that's happening tooin our personal lives and our business, so you mention the great pawse andyou're right. We have not been able to really create this space in time. Thishas been a almost a forcing function into our work life into our personallife, our family life, but it's it's literally one of the the four digitalgrowth operating environments that I work with financial brands around'cause. There's, there's h the training aspect, O learning aspect whuth, youhave a big conference. That's right around the corner. You have thethinking aspect of the planning aspect and, as you noted in our in our preinterview, this is like your teac planning in a week, then you have thedoing aspect of everything, but I find a lot of people get stuck in the doingof whatever it is that we're working on. So it is nice to get Tho space in time.This great pause, as as you Noti, because it is from there we can moveinto the fourth environment, which is to review and reflect, learn somethingand just apply this thinking going forard so as you've shifted internally.You mentioned here two things that are important: The employee experience andthe service or the customer experience. How is that shifting that thinkingshifted for you in this Postcova nineteen world? It's been tremendous to to play this out. We we really had toput on our mask before assisting others and really looking at our evloys,because we hav this distributed workforce each location had a differentset of roles. We did have also essential employees that, in ourcontact center, that have to be on the front lives really assisting our memborcreinoms. So what their experience was going to be was going to be differentthan our marketing team or our finance...

...team or our sales teams that ere kindof sitting at home. So we had it, we really had to take witin a week and ahalf we moved everyone, remote hounding up all of the infrastructore stabilize,had to really make sure our frentline staff were well taken care of and as we,we dis fell as a leadership team, tremendous responsibility to take careof the humans that could be medically impacted by this pendenic,and so that was Firston foremost in our minds and took tok up a good two three weeks for us to really getour make sure that we managed that the right way and as we were pivoting I mean. Of coursewe were doing that well, keeping service levels as solid as possibleduring all of that transition, keeping uttimes o solid as possible. What werealize is that, well, the work that we've been doing over the past fewyears has really paid off, because co up and our board has driven us toreally invest aggressively in our organization to be u platform, business,to be able to be agile and responds O, regardless of what comes at you, andmostly that was dime in order for us to ring in News, the asset Nese delusionsne things that would be appropriate in a growth environment, but it also worksin a risk environment. So, first we we took care of r employees and what thatdid is that it really gave us a culture, lift the employees and we, we rampd upcommunications dramatically. We put out daily Wewe, have something called theCOB napshop and that was typically a weekly. We now made it daily so thatemployees would know what to expect and many of them their schools were closing.We were just talking about I'm now a hom school teacher and Adcaso.

They have all of these new challengesand how do you make it all happen? So they were meeting a lot of information.Ur, CEO Tom Clark, we wer ps an speaking with them, weekly, the videoconberence and what we found as that employees. Gratitude was so high and itreally helped them be thankful for Co op and what we were able to do and itmade them hungry to be chage agents and do what we need to do for our clients,and so us really focusing first on the employee experience was helping us bemore innovative with the changes that were happening in the covet environmentto say what should we do differently to the best service, our plants and theirmembers? You know hearing you talk through thatit. It gives me a lot of hope just for the sheer size of the organization andbeing able to be agill. Make these pivots leadership. I think, plays a bigroll in that ad, just to hear what tod has been doing with communication, moreimportantly, videocommunication to ensue that the human element is stillin there. Just like you and I are having this conversation, we had alitte it of cechnical difficulties, nd, I'm hoping that we will see thisthrough, but the fact that I can see you just add so much more richness toeverything going on en communication. IMMUNICAT ING, couraged 'cause, justlike this virus courage is contagious and gratitude. I was just talking withthe Dr Biji an hardy about this. The importance of gratitude, starting inthe day to say, put your mines at in the right direction to rise, above allthe chaos, all the confusion, this crisis and IAT to limit that. But it'slike you said it's about putting your mask on it ece and I know it's theoxygen mask not so megimasthat the surgiccal ask. So, let's talk about yyou've, you've dealt with the empoes and and that's had a big impact aboutexperience and experience is a big part...

...of H, states, conversation and reallythe opportunities in a postcoved nineteen world. So how would you defiethe customer experience of Ercreditins the member experience in today'sdigital world really from your perspective as it stands, and the oneare the opportunities to that matter, going forard yeah, so we're seeing it n in prettymuch four different ways if Yeu Wene to roll that all up digitaltransformation has never been hotter, it's never been sexer. It is reallyimportant and and essential. I know it is something that we've all spokenabout for a few years now, tbut man, we are grateful and that are board,pressed us to really invest in the infrastructure and the teams and theydevelopers and doubled down on our distributedworkforce and having talent available from everywhere just getting the best talent. When youput all of those things toother having data scientists like really having italtogether, it held us be able to shit like that and so asbing able to to turn really quickly, even in the midst whenthe coment was happening, we had just put in the biggest piece of technologyhad had the biggest CECK upgrade in our contact center that we had ever had,and the teams were in the midst of doing that technology shift when co ithit, and then we had to move. We had to move the teams that were in our Dallaslocation to another location. Take some of those teams, make them remote atduel, site Contmuiti with our Iowa location, so that went off without ahitch. We were able to do that with bearing with limited impact to our clients, and weended up dealing with double the...

...capacity of our call volumes and hadservice levels remaind stable. So when we talk about digital transformation,it's crucial in a time like this and what we understand about consumersentiment and behavior is s. They will give us all a break becausethey understand covet they'll. Do that near term, but come the fall, or youknow, as this kind of droves, on they're, going to acpect that kind ofresponse and that kind of Um service level, as they would expectfrom Google or any sort of big TEP company, and so the things that we needto be thoughtful about are digital. First, everything were even we're apayments companies, so we see our crying and clients and thosesophisticated are really looking at. All of the way is that they digitallyengage around the payment experience, how they're making it transparent, howthey're embedding themselves in digital merghants and putting putting togetherfull or words programs and marking programs Um, using Amazon and and thosetypes of merchants that are digital first and then the crediiums that arejust really kind of dipping. The tone in the water they're just seeing Aronon debitcards they're, like they have members that are typically cash membersthat are now asking for deba cards that are rolling in the pays and apple payand SAN SONPA garment pay. All of these different types of Um, all of thedigital pays, and then you know we're we're just really needing to reassesswhat is that digital environment look like to to do business remotelySecondlymr no touch rold, so contactless as through the roof.Everybody is asking for contact with and theyare experiencing that point ofsale environment, either using a didital wallet or using theircontactless cards. We're seeing a lot of skip the D types of efforts andcampaigns and, of course, rounding out...

...that financial wellness between both ofthose things on w in the payments environment, Nerota wit, a lot ofskippapeys and and really demonstrating that emtathe for for o r member baseand then on the flipside. We need to be a really be thoughtful about remoteservice. How are your members doing business with you when you're not going to be saing themin person? So how? What is that journey like within your Credit Union? And howdo they take advantage of your services, whether its sten say, borrow and bestprotect? What does that? What do all of those usecases look like in a remoteservice, environment and then fraud, I mean carnot present fraud is startingto go up dramatically. So how are you making sure that your teamsare managing that so 's? It's just really. Rethinking that employee experience and the memberexperience the retheir eyes, and it's it's leading with empathy and using we talk about the operating systemhaving your operating system and your service model be digital firstthroughout all of those and there's very simple things that you can do tojust start. That technology has transformed our worldand digital has changed the way consumers shop for and buy financialservices forever. Now consumers make purchase decisions long before theywalk into a branch if they walk into a branch at all, but your financial brandstill wants to grow loans and deposits. We get it. Digital growth can feelconfusing, frustrating and overwhelming for any financial brain marketing ansales leader, but it doesn't have to because James Robert wrote the bookthat guides you every step of the way along your digital growth journey visit,www, dot, digital growth, docom to get a preview of his best selling bookbanking on digital growth, or order a...

...copy right now for you, and your teamfrom Amazon inside you'll find a strategic marketing manifesto that waswritten to transform financial brands and it is packed full of practicalanprovent insights. You can start using today to confidently generate ten timesmore loans and deposits. Now back to the show yeah, you know hearing you talk throughthat digital transformation, digital first digital payments, and, tothat last point t the idea on digital payments, because what I'm seeing isit's almost quadsunami, because we've had thehealth crisis which is going NA lead into the financial health crisis whichis going to lead into the socital crisis, which is all of those becausejob displacement, for example, thirty percent unemployment is, is aprediction going into tweanty twenty one? That's GOINTA, then lead to thepsychological or the mental crisis, so you talked about like the financialwell being because there's such a strong coralaition between physical,well being meantawell being and really read at th, the bottom of that is, isfinancial well being and the longer that we stay in the situation. The morethat consumer habits, consumer behaviors, almost like ne new neuralnetworks, are being formed in the consumers mind of how they're they'rebuying shopping banking paying. So there are vast amounts of opportunity,one of the things that we, I think it's importto be cognisive of when we talkabout experience is- and you use the word, empathy gets the financialhardships and trust trust will become the credit in his most valuablecurrency. I've always thoughed about making the you know deposits in aconsumers, trust Bak being their mind. What can can creditin look in financialbrands do to make those deposits those...

...trust deposits in the computer, there'sa few things to think about Ikh, that an trust can be defined as character andcapability and character is definitely something that cut I use really own. Imean we're known as being the good guys doing the right thing from a capabilitytandpoint. You might not trust A. I O do all F. He things that you wouldexpect them to do o or yo at your Nesto, never to expect it or in the manner themethod itwe to expect it. So there is what consumer end up doing is thattheir II, no nat they are, they are igalmas pulling in their differentyouthcases, O different parks. I E I haven't stor anybody. That knowsme when I startd working ACO. I was I library that did three things it madephone calls. I kept my calendar and I couldn't send a really weird tachmessage: Ili Taforever, I'm not keyboard. I nowhave, and I found a smartphone that has a hundred eleven different companiesthat I can carry around with me everywhere and typically my day istrammeling and though I need to be able to do business with all of thosedifferent providers, regardless of when I am so. What the en consumer has beendoing in terms of trust is finding the quickest point from atob and and thatwhomever can execute a usecase in this. The phone, the abogated environment ofthe phone, is the one that wins the challenge there is that the n consumerdoesn't have a good idea of how they're doing in their financial life when theyhave fragmented all of those usecases. They can't tell how my performing on mycash flow. How am I doing with my retirement? How am I doing and savingfor my eight year Olds College Education? What Doestha? What does myinsurance look like- and...

I think the opportunity for crediinionsis O- is too double down on the ampathy and the the trust that they have, that they'regoing to do what's best for their members, while they reaggregatefinancial services and truly behave as this ecosystem of engagement andfinancial wellness? And that's how you build trust that can turn intomarketshare. We are saying U transaction volumes down, becausepeople are not are not spending in a nondiscretionary manner or adiscretionary manner they're putting everything into the base the essentials,but we have a real opportunity to be there for our members and todemonstrate that empathy and what they can be doing from a financial wellnessstandpoint overcommunicating with them we will win. The balleground today ison engagement and financial wellness, and when you put that together along I,I still believe that I'm payments is part of that engagement when you putout altogether we're building that trust and we're growing markagshare,and you will also see loans pick up when you do that. You will see thatcorrelation between that engagement and Payments Day to day lifestyle and youbeing abetd in the day to thay last allof, the member with those live stage,big ticket items that happen for the fact that Cretitg Nuws dependon as abred letter. You know I really like that perspective. Trust is characterand capability combined, and so when I look at experience throughthrough the Lind of Digital Growth Institute, it's really twofold. It'sit's! The digital experience of the DX, but that that's only one side of theequation: It's also the human experiences we talked about beforeusing technology to bring people...

...together for good. So here's a question:I'm an executive at a financial brand out, AF credit union. I get what you'resaying Sam but like. I can't get everyone on board and you said tretdingis aren't really known for speed, but this Cova nineteen is a forcingfunction to force some of this digital transformation. THAs been in theconversation's fear. What can I do to help bring othersalong so that we can move forwd in a unified manner to implement some ofthis thinking and really Bild experiences that bill? Trust that thatgenerate leades retain leads an n to Usour work, Reaggradate, the CreditUnion? That's funny, it feels overwhelming. Iknow for Morcreditigions. That feels really like a lot to look at there. The entireseries of they're delivering n all of their channels and all of theirescasesAy Ighway optomize Tis we isebag is that till at nineteen is forcing themto do it. They're having to look at their ranch, expearancees say well howwe need to change this, to make it Fafe for our members. We need to havenumbers outside they would, if we're open. They would then have anappointment. Nobody get to come in and meet with one of our team numbers. Annemberservcs is representatives we're doing this. We're transforming theexperience already were looking at elevated colvoumes were looking atgreater uptic and, like I said, but Pemans fer calls and all of theouncelary services because go around those TM vehicles, we're seen an opticand didal engagement, IAM, indigital, banking and all your social canmels Ow,you service those clients, so we are doing it. What I would recommend isthat what we tend to do is we look iternally, I said, look inside first, Iwould actually flip that for designing the experience for the member andagainst our ushcases, you look at the...

...basic things that we do for our members. We help them. Save, spend, Invest,borrow and we keep thei money safe. So those are the basic use cases of whatwe do out of creditunion and when you think about who those people are thatyou are providing those used cases too, crediting is tend to cast the widestnet possible and say we are everything to everyone, and I is a challenge whenwe are community based financial institutions that have limitedresources, limited staff, we don't have the the capital invustment to competeat the same level as big tecinthentak and the the top three banks in thecountry, nd that are investing dramatically into these things. So itis hewful to focus. We do work and there's a crit Munera ordeliprenimium.That has has a tremendous case Tudi on how they nealy focused, and they saidwe orn that I focused on on these really textabby connected types ofmembers and make tough choices about what are we going to cut? What are wegoing to say no to in order to enhance the experience for this member? So youhave to get very focused on who your members are and what that experience isacross those use cases and you design you get very clear in understandingthose numbers and design from their point of the point of view in sopractically the way that you do that, I do believe it's important to journeymap.I do IMP believe it's important to have a crossfunctional team within yourcreditingion of many functional areas...

...where R really understanding. What doesthat look like and collaborating on that, and then you make choices on.What are we willing to change, and I know a creditingion that decided thatthey were gthey were going to cut their branches and cut their ATM footprint,participate in the network of ATMs so that they could invest in digital thereas many choices to make when you're saying build by a partner. But when youare clear about who your target member is and what they want and design orthink about it from their perspective, inward Theu're going to be a lot moresuccessful in prioritizing where you should be investing and understandingcrating metreks around. Are you going to gain marketshare if you make thosestrategic bus so start from the consumer and go in and don't haveseventy two different consumer types as your Persoun, as you really have tofocus that right? There don't have seventytwo different personas. I can't tell you when we go in and we do digitalgrowh diagnostics and we see I've seen I've seen upwards of ninety differentpersona types. This is about simplifying the complexities and wehave to start thes siplification internally, because otherwise, thecomplexities than just just spread out externally, and I liked what you said.This is about people putting people at the heart of all of our thinking andall of our doing its human centor design. But, most importantly, it'shaving the courage to say no, it's having the courage to let go of thepast and it's not personal. It's just what Godst, where we're at today wn'tget us to where we need to go tomorrow. So I'm finding courage is reallyrequired. At a time like this San, it's been sca a wonderful Parro, cary and atas hard, but it is exciting too, like I...

...think that we have to see it we' verygood at saying. Oh, that won't work, that's not good and peoplehannow theirvalue. In saying my things are wrong. Me Is much harder to Hava builders,MINDAT or Gat mindset around this atthisis people me as these membersmeet US and they're getting annoyed by n chase. They are annoyed by BA ofAmerica and really how they handled Covin. So we are being served up asincredible opportunity right now. This is giving us the space as the crediteating movement to say, we're an important part of the financial service is Baveran and wecan really help people right now and look we're here. I'm going to show youhow we're going to do it and I think that's something we missed in twothousand. We miss it Vaden, and that is the opportunity and really it's it'sbeen such a wonderful conversation, a lot of practical ideas for someonelistening, I'm Gong to take. Take! U Your recommendation on Focus and I'd.Like to ask you one last question: Let's shorten the curve twelve months, what is your recommendation forfinancial brand or credit union to focus in on? If so that we don't havethis list of seventy two things that we need to do, but if you can maybe justsay, you know what this it's nat the end I'll be all, but it's just going toget you started in moving in the right direction. I would say we you need to double downon how youare investing right now, so all of the shifts that youare makingnow keep going with them, throw theoriginal budget out the window and the original strategic plan. It's importantfor us to be focused on a digital, first environment, look and see theTrenstat. You saw how wetwhat was membor behavior like when you madethese ships can't be open to really...

...measuring what just happened and sayingall right. Let's keep going with us because the digital is going to gofaster. It is what we're seeing from our competitors really not even in thebanking space. Bat in the big taxpace apple got into financial services andpayments. They are, that is the day to day member engagement, and I I think,as Ciin as we look to, we look too much and our ladmetrixs andUr our piano to drive our strategic choices. That's looking backwards. Ithink we have a an opportunity to look forwards and to say how are memborsbehaving and where are our technology competitors coming in and we need tomake sure that we can be trusted from a capability standpoint. So, as we'veseen, member behavior move to completely remote to having everybody,basically in including my eighty seven year old mother in law, do her banking,remotely and via a cellphone. We have to be a diginal first onmoit serviceand be available in a no touch environment, and I think that's goingto help us speed up this idea of digital transformation and thatflexibility on how we bring Talon in and how they work. I think neens tocontinual very much so very much Soso, lookingforward building trustalce again through character and capability,digital first sying. If someone wants to continue the conversation that westarted today, what's the best way for them to reach out to you and say hello,Langdan's, always great and Samaltha Pakon I'Mlingcon, and I'm also prettyactive on twitter as well. Sam Smith Paxon. I alitter excellent amthanksagain for joining me on another Epso of...

...banking, on digital growth. R until next time be well, do good andwash your hands. Thank you for listening to another episode of bankingon digital growth with James Robert Lay like what you hear tell a friend aboutthe podcast and leave us a review on apple podcast, Google, podcast orspotify, and subscribe, while you're there to get even more practical,improvent insights. Is it www don digital growth docom to grab a previewof James Robert's, best selling book banking on digital growth, or order acopy right now for you and your team from Amazon inside you'll find astrategic marketing in sales blueprint framed around twelve key areas of focusthat empower you to confidently generate ten times more loans anddeposits until next time be well and do good.

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