PLACING PEOPLE BEFORE PROFIT THROUGHOUT DIGITAL TRANSFORMATION
AN AGILE, PEOPLE-FOCUSED DIGITAL TRANSFORMATION WRIT TEN BY
CATHERINE S TURM AN
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M AY 2 0 1 9
PRODUCED BY
ANDY TURNER
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AFFINITY PLUS FEDERAL CREDIT UNION
Recognized by Forbes as Minnesota’s ‘Best-In-State Credit Union’ in 2018, Business Chief finds out how Affinity Plus has fully digitized its services and technology foundation in a world class transformation 04
P
lacing people before profits, Affinity Plus Federal Credit Union has gained a unique edge amongst traditional banking
service providers. A financial cooperative owned by the members of the credit union, those who have accounts are also the company’s owners. With a genuine belief to always develop and continuously improve its services for its members and employees, Affinity Plus Credit Union has recently been recognized by Forbes as Minnesota’s “Best-In-State Credit Union,” an achievement of which the company is extremely proud. Since its inception in the early 1930s, Affinity Plus has grown to serve nearly 200,000 members with loans, credit cards, mortgage services, investment accounts and much more. Responsible for the company’s operational performance, President and CEO Dave Larson is leading the way
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AFFINITY PLUS FEDERAL CREDIT UNION
“ Technology is moving fast; our members’ behavior in how they interact with the credit union is evolving” — Teri Laufers, CIO, Affinity Plus Federal Credit Union
only did she seek to execute high standards while implementing a robust digital infrastructure across a three-year transformation, she was also the executive project sponsor during the conversion journey, ensuring that the needs of both members and employees were top of mind. “We have transformed seven of our major systems in three years. The goal was to improve these systems, drive efficiency and allow for better service, both for employees and for our members,” she explains. “The systems
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had to be adaptable and flexible as in the delivery of affordable and
the credit union continues to progress,
sustainable financial services which
and be increasingly responsive to our
improve the lives of the credit union’s
members’ needs. We wanted the
members.
ability to be more nimble. Technology
To support employees and cater to
is moving fast; our members’ behavior
growing member demands for agile,
in how they interact with the credit
digital financial services that provide
union is evolving, and we need to be
increased accessibility, exceptional
able to respond effectively. Moving
performance and ease of use, the
forward, we feel confident in our
credit union has undergone an
ability to do so.”
extensive digital transformation which
In 2016, the company undertook an
impacts all areas of the business. At
extensive review of its financial and
the heart of Affinity Plus’ technology
digital systems, which started the
foundation, Chief Information Officer
slate of conversions in motion. The
(CIO) Teri Laufers explains that not
credit union’s real estate loan origina-
CLICK TO WATCH : ‘AFFINITY PLUS MYPLUS REWARDS’ 07 tion system, Encompass, was the first
mobile apps forecasted to generate
major launch in this slate of changes,
approximately US$189bn in revenues
and catered towards increased
by 2020 via app stores and in-app
member demands for these services.
advertising, it was imperative for
By the end of 2018, the implementa-
Affinity Plus to take advantage of this
tion of a new core processing system
growing opportunity. The credit union
included 65 vendor integrations and
set a Board goal to launch the new
85 custom programs.
mobile and online banking platforms in late 2017, but this task was not
DIGITALLY ENABLED
without its challenges. Through
One area of focus was of particular
extensive testing and fixes over
importance to Affinity Plus: the
months, Larson explains that Affinity
implementation of a much-needed
Plus did not feel the system was in the
innovative, mobile-first, member-ori-
best place to support members.
entated digital banking platform. With
“We were having latency issues
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AFFINITY PLUS FEDERAL CREDIT UNION
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which would have impacted the quality
the challenges that you face is just as
of experience for our members, so we
important as talking about the
made the decision to push the launch
successes. Employees know that we,
back a couple of months. In reality, we
as an organization, have challenges –
could have launched our new mobile
just like they do themselves.”
app on schedule as planned, but we
Placing members at the heart of its
didn’t think it was the right thing to do,
services, Laufers stresses that
and we had the full support of the
millennials have acutely disrupted
Board in this decision,” Larson says.
traditional communication methods,
“We went to the employee base and
leading Affinity Plus to place further
told them that we were going to hold
investment in providing intuitive,
off because we didn’t feel that it was
digitally-led solutions. “What we’re
what the members would want for
finding in our research is that a lot of
their experience. I believe that sharing
millennials are not just ‘mobile first’
– they are moving toward ‘mobile only’,”
union’s desire to cater to the evolving
she explains. “We really feel that for
needs of its members, as well as for
many, mobile is an easier way to
further self-service options and a
communicate, and I think it’s a great
better overall digital experience. In
way to further build that relationship.
April 2018, the credit union debuted its
Certainly, conversations, texting and
new mobile banking app and online
different kinds of personal connec-
banking platform. Noting that the
tions via mobile are a great way
organization has been highly respon-
to reach the millennial generation
sive in enhancing member experienc-
and others.”
es through mobile, Larson outlines
Affinity Plus’ new digital tools have effectively showcased the credit
that 59% of members are now utilizing Affinity Plus’ mobile and online
E XE CU T I VE PRO FI LE
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Dave Larson, President/Chief Executive Officer Dave Larson is President/CEO of Affinity Plus, a position he has held since 2013. Prior to this, Larson served as Senior Vice President of Affinity Plus for nine years. As CEO, Larson led the effort to strengthen and rebuild the credit union. The success and organizational culture built at Affinity Plus led to his 2018 recognition by the Star Tribune as ‘Top CEO’ among large companies, and he was also named to Minnesota 500’s list of ‘Most Powerful Business Leaders in Minnesota’. Under his leadership, Affinity Plus was named a ‘Top 150 Workplace’ and designated ‘Best Credit Union in Minnesota’ by Forbes. Larson has a genuine care for the employees, the credit union’s members, and the communities that Affinity Plus serves. He is the Board Chair of the Minnesota Credit Union Foundation and serves on the Board of Directors for Special Olympics Minnesota.
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“ Sharing the challenges that you face is just as important as talking about the successes” — Dave Larson, CEO, Affinity Plus Federal Credit Union
says Larson. “We diligently monitor feedback on social media and through our net promoter score program, and we host focus groups and conduct surveys. We really want members to share with us what additional features they are looking for in the mobile app, and we will continue to add to our project list based on their input. We know that digital is a huge part of people’s lives today and are putting appropriate focus there. Our results clearly demonstrate that.” Following the successful launch of its new digital solutions, Affinity Plus
banking services – a 21% increase in
launched its new core operating
mobile app usage in less than one
system in October 2018. “We hadn’t
year’s time. Following its launch, the
changed our core system in 20 years,
new mobile app has received more
and we really felt that the technology
than 19,000 reviews on the App Store
that we were using was, in some cases,
with a 4.8 star rating.
outdated. We really needed to propel
“There’s definitely a lot we want to
ourselves forward,” says Larson. “One
do to enhance the member experi-
of our key objectives overall was to
ence through mobile. With the App
provide members and employees a
Store rating increase from 1.5 stars in
better experience in terms of their
2017 to 4.8 stars today, we could just
interactions, whether working with the
say, ‘Let’s just call it good’. But we
credit union as an employee or
have a strong internal focus on the
interacting with us as a member.”
voice of the member, and we want to
With a new core system in place,
ensure we’re taking their feedback
Affinity Plus will have more opportuni-
into account on an ongoing basis,”
ties in the future to explore the use of
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AFFINITY PLUS FEDERAL CREDIT UNION
Our BI group didn’t exist four years ago, and now we have seven employees that work with our data analytics” — Dave Larson, CEO, Affinity Plus Federal Credit Union
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cloud, the Internet of Things (IoT),
better understand our member
artificial intelligence (AI), chatbots and
information and communicate with our
voice technologies to boost its
members more effectively.”
technology infrastructure. “In recent
Providing exceptional support
years we have also placed significant
Remaining conscious of the
investment in information security and
growing trend for digital innovation,
business intelligence (BI),” says
but also to support those that prefer
Larson. “Today we have an entire
face-to-face interaction or are slower
department supporting our security
to adopt new technologies, Affinity
efforts. Additionally, our BI group
Plus has also placed significant invest-
didn’t exist four years ago, and now
ment in developing next generation
we have eight employees that work
branches, which house open technol-
with our data analytics to allow us to
ogy bars, face-to-face interactions 13
E XE CU T I VE PRO FI LE
Teri Laufers, Chief Information Officer Teri Laufers is Chief Information Officer for Affinity Plus Federal Credit Union. She has nearly 30 years of credit union industry experience, joining Affinity Plus in 2014. She leads a growing, evolving team of information technology professionals, with her purview including operations, applications, system administration, software, technical support, testing and development. Laufers is an advocate for change and has a strong desire to bring superior technology solutions to Affinity Plus members and employees. She has a Bachelor’s Degree in Education and an MBA in Technology Management. Throughout her career she has shared her knowledge and expertise serving on several industry committees, technology councils and software user groups.
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AFFINITY PLUS FEDERAL CREDIT UNION
“ We’re finding that a lot of millennials are not just ‘mobile first’ – they are moving toward ‘mobile only” — Teri Laufers, CIO, Affinity Plus Federal Credit Union
members when they see opportunities – for example, when a member is in line wanting to make a deposit and they’re using their smart phone. “We certainly want to help them with their deposit, but we consider it an opportunity to show them how to get the job done in a different, more convenient way,” he says. “In most cases, they might be aware but are a little afraid. With a technologist mindset, our employees are ready to aid them. I think the environment that we have set up is really conducive for that.” Affinity Plus’ commitment to
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transparency throughout the converand a plethora of new digital tools.
sion process has proved beneficial to
“The days of having tellers and lenders
both members and employees. Along
in the branch are evolving more
the way the credit union highlighted
toward technologists who can support
the many advantages of the new
members with both their financial and
systems to generate excitement and
technology needs,” says Larson. “The
anticipation for the changes. Getting
reality is that not all of our members
more than 560 employees on board
understand the technology, so there is
and focused on one major initiative is
a lot of opportunity for us to really
no easy feat, yet Affinity Plus took on
assist and engage them, and to show
the challenge with gusto, creating an
them how technological enhance-
entire brand around its three-year
ments in banking can really add
journey, which it referred to internally
convenience to their lives.”
as the ‘Journey Beyond’. “We wanted
Larson adds that employees are coached to offer this support to
this extensive project to have a life of its own: a different logo and different
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AFFINITY PLUS FEDERAL CREDIT UNION
colors and a lot of fun surrounding the journey really allowed us to bring proper focus throughout the organization. Employee buy-in was key to our success,” says Larson. “Another aspect important to our success is that our senior management group is very visible and accessible to our employees. It was important during a project of this magnitude to have multiple touchpoints.” Employee and member communication peaked at various times during the three year journey, ensuring that 16
Affinity Plus kept the benefits of the changes at the forefront. The credit union also provided outlets for members to ask questions and voice frustrations.
PEOPLE POWER Although technology has been a key driver in enhancing Affinity Plus’ service offerings, Larson is keen to stress that the company would not have achieved its goals without its dedicated workforce. Harnessing a project-oriented mindset, more than 230 employees across the credit union contributed in either a full- or part-time capacity. And that has
created the appetite for many to explore what’s next – to take the credit union even further. “We crossed the finish line and we had great success, but our employees are now thirsty for more innovation, more projects, and more opportunities to grow personally and professionally,” says Larson, noting the need for balance in driving innovation and progress while determining when members and employees are ready. With more than 28,000 hours of training and development for employees leading up to the core conversion in October 2018, Affinity Plus doubled the size of its training team and recruited temporary trainers from within its employee base. All employees took part in some form of large group training and completed hours of practice in the months that followed. They learned and stretched and worked outside their comfort zones. And the investment has proved to be invaluable. Undertaking a confidence check at the 30-day mark post-conversion to the new core system, employees reported a confidence level of rating of 4.0 on a scale of 1-5. Moving forward, Affinity Plus has also
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AFFINITY PLUS FEDERAL CREDIT UNION
1930
Year founded
560
Approximate number of employees
HQ
St Paul Minnesota 18
partnered with LinkedIn Learning to further provide essential life skills and learning opportunities, which will benefit both members and employees. “We are really proud of what we have been able to do with our mobile and digital offerings. We’re making members’ lives easier by making their experience that much better,” says Laufers. “Our employees have been presented with a lot of challenges, a lot of professional growth and a lot of opportunities in being a part of these projects, and they really rose to the occasion.”
“ We’re finding that a lot of millennials are not just ‘mobile first’ – they are moving toward ‘mobile only” — Teri Laufers, CIO, Affinity Plus Federal Credit Union
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Agreeing, Larson adds: “For the last three years, we had so many projects and conversions happening, yet we
something that continues to give us a tremendous sense of pride.” Through the focus Affinity Plus has
still had to serve our core function
placed on consistently improving and
– running a credit union to support the
advancing its digital offerings, mem-
needs of our members. And we did
bers will continue to see investments
that well. During this time, member
in the cooperative. Growth and
satisfaction on net promoter scores
change – with the member at the
remained high, and we received
forefront – will propel the credit union
positive member feedback and
forward and set it apart from others
awards for running a high-quality
in the field.
financial institution. To be named the top credit union in the eyes of our members and our employees is
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Affinity Plus Federal Credit Union 175 West Lafayette Frontage Road St Paul, MN 55107 T (800) 322-7228 www.affinityplus.org