By Ray Birch
HERNDON, Va.–Northwest CU has a new “employee” who has a big upside, but as the credit union also acknowledges, some minor limitations, as well—she’s too small to work the teller line and she doesn’t like the sun.
Other than those things, Northwest CU says its newest addition can do a lot to not only change the credit union’s image but also streamline service in its branches.
The $3.3-billion NFCU is believed to be the second credit union to bring “Pepper” aboard. Pepper is a social humanoid robot created by Softbank Robotics that uses facial recognition and artificial intelligence to act as a member service representative at the CU. Pepper is being used to assist members, show products and services, and teach financial literacy through games and interactions.
As CUToday.info reported, the $1.2-billion Clearview FCU in Moon Township, Penn. has employed Pepper to the satisfaction of the credit union and its members.
Strengthening Image
Northwest said one of the biggest reasons it is using Pepper is to strengthen its image as a progressive credit union.
“We got the idea to use Pepper as we were discussing the opening of our first new city branches in Arlington, Virginia,” explained Jeff Margeson, SVP of member experience. “These locations will have a very tech-forward feel, and we had seen Pepper used in other areas of business and thought she would be a good fit for our new location. We felt Pepper would be great to help engage members and prospective members.”
With the goal to further drive the credit union’s image as being high tech, Margeson said Northwest quickly realized Pepper can do a lot more.
“We were using Pepper only for a short time and we thought we’d expand her uses and take her around eventually to all of our branches and also take her to community events and SEG group meetings,” said Margeson, who at the time of the interview with CUToday.info had Pepper on board for less than two months. “Our SEG business development team owns her and we're saying she's on the Pepper world tour right now. We have her scheduled at each one of our branches and business development events.”
The credit union has created a web page that introduces Pepper to members here.
‘Tons of Data’
Margeson said Pepper comes with a content management system accessed from the robot’s back.
“We have loaded her with information about who we are, our history, our products and services. And we've also actually implemented a financial literacy quiz and have a number of games that kids can play,” said Margeson. “Pepper loves taking selfies with people and dancing. People really engage with her.”
Pepper’s data reporting software shows the credit union what people are talking to her about, and what information they need most.
“We get tons of data and reporting from her,” Margeson said. “Some of the most popular products and services that people are engaged with her about are mortgages and checking accounts. If you're sitting in a branch and waiting to speak to a representative, for example, and you say to Pepper, ‘I want to learn more about mortgages,’ she’ll ask you if you would like her to email you information about mortgages. You just put in your personal email on Pepper’s touch screen and she'll send you information right then. She’ll also connect you with one of our representatives for more details.”
Strong Member Reaction
Member reaction to Pepper has been very good, according Margeson.
“Kids, of course, are really drawn to her. But people will walk in and find Pepper intriguing and are drawn to her, as well,” said Margeson, who noted Pepper is typically positioned in branch lobbies. “She has multiple cameras and microphones and once she senses another person or hears audio she will pivot to engage with the person. She can have one-on-one or group conversations.”
At the close of conversations, Pepper asks consumers if they are willing to take a quick survey about their interaction with her.
“We pulled a report yesterday that shows 95% of people reported having a positive experience with Pepper, and 92% have found the information she provided very helpful,” explained Margeson.
A Few Members Express Concerns
Margeson acknowledged not everyone loves Pepper, and that a very small number of people have been concerned Pepper is collecting data on them and storing it.
“We assure them Pepper is not storing data on our members,” said Margeson.
There is no concern among employees that Pepper will someday steal jobs, according to Margeson, who said the robot will be used to augment the roles of current staff, not replace them.
“If a branch staffer is busy, maybe Pepper can start the process for the MSR and help the member learn about the product they are interested in, get rates etc. Then, she can connect the person with one of our employees as soon as they are free,” said Margeson. “I don’t see Pepper ever replacing human interaction, I see her augmenting it.”
Gender Identity
Unlike Clearview FCU, which has not given Pepper a gender identity, Margeson said Northwest FCU finds a gender reference makes it easier to refer to the robot.
“We actually have not given Pepper a male or female identity, but in speaking about Pepper we refer to her as a female,” explained Margeson. “We do that because Pepper has a female sounding voice, and we chose that voice because Softbank said it was the one that was most appealing to all demographics.”
While Northwest did not share what it paid for Pepper, Softbank has reported the 64-pound robot costs about $1,700 upfront and an additional $134 a month for 36 months for maintenance and $89 a month for 36 months for insurance.
Not Fond of the Outdoors
One thing Northwest has learned not to do with Pepper is take the robot out in direct sunlight.
“We took her to a community event and—just like any computer—Pepper can overheat in the sun. So, she stays inside a lot,” Margeson said.
The credit union recently took Pepper to a college recruiting event.
“She was a huge hit. We got a lot of attention due to Pepper. The college staff who ran the event said they felt like all of the other financial institutions that were there were at a disadvantage because we had Pepper. Pepper is a great resource.”