MADISON, Wis.–From AI-based tools that aid members with auto shopping and financing, to gamification to ensure financial education truly engages, to an innovation tool for midsized credit unions, five teams that are part of Filene’s i3 program introduced the ideas they have prototyped.
Their solutions were unveiled during the second of two webinars in which five prototypes were shared, following the five that were unveiled during an earlier webinar (CUToday.info has coverage here).
The ideas were presented by members of i3 waves 18 and 19.
Here is a look at each of the five prototypes shared during the webinar:
How to Thrive With a Lost Generation
Team: Break the Bank
Prototype: Thrive, an app
Pointing to the emergence of a new generation of consumers 26 years old and younger, Generation Z accounts for about 20% to 25% of the world's population and nearly $7 trillion in purchasing influence, according to the team behind Thrive.
To better grab a generation credit unions are “struggling to capture,” according to the Break the Bank team, it has prototyped an app it calls “Thrive” that offers “personal financial counseling for Gen Z and others powered by credit unions.”
Break the Bank said Gen Z has unlimited financial options, including digital apps and fintechs, and that’s the problems, as “they don't know what to do with their money and they are often inundated with unreliable advice.”
Citing an earlier Filene study that identified an opportunity with the generation in personalized financial coaching sessions, the team said credit unions can “positively impact and influence members financial management behavior.”
‘Intuitive Mobile App’
To that end it has created Thrive, which it described as an “intuitive mobile app offering personalized financial guidance…to a network of nearly 8,000 financial counselors from 600 credit unions.”
According to the Break the Bank team, Thrive offers:
- AI-driven registration and onboarding
- Appointment scheduling
- Financial education, customized to financial goals
- Live meets with counselors
- Goal-driven follow-up conversations and resources
- Social media engagement
- Retention
How CUs Also Benefit
Meanwhile, participating credit unions can benefit by gaining access to a prospect pipeline and both micro- and macro-data “bolstered by data insights for strategic growth,” the team said. “This solution fosters credit union market share while enhancing Generation Z's understanding of how credit unions can support their financial goals to gain feedback.”
The team said the prototype has been focus group-tested and received positive feedback.
Meanwhile, Thrive’s primary revenue source will stem from strategic partnerships with credit unions, according to the team, whose projections call for partnerships with 10 CUs in year one and 30 by year three. It projects it will be breakeven by its second year and profitable by its third.
“Eighty percent of Gen Z marketshare is held by banks and fintechs,” the team said. “Credit unions must work strategically together to attract and retain Gen Z or risk becoming as obsolete as old technology.”
An AI-Driven Innovation Assessment for Midsized CUs
Team: The Progress Propellers
Prototype: Elevate Innovation AI
Team Progress Propellers sees an opportunity to help midsized credit unions create a culture of innovation and agility in order to secure their position in the market.
Technology capacity gaps have put many credit unions at a competitive disadvantage, “underscoring the urgency for a strategic and informed approach to innovation,” according to the team.
In response, it has created an AI-based solution that helps CU leaders to get a real-time overview of their organizations’ “innovation vital signs.”
The vital signs, shown in the chart, are based on internal data and surveys related to multiple questions, such as alignment with strategic goals, percentage of resources allocated for innovation projects, employee engagement levels with innovation, and more.
The Progress Propellers’ said their tool aids leaders in “pinpointing areas for improvement” and “realizing the need for external expertise.”
“We asked ourselves, ‘How can mid-size credit unions cultivate innovation and maintain agility to keep up with the evolving demands of their membership while securing their position in the industry?’” the team said. “This problem statement highlights the need for credit unions to focus on innovation, agility and customer-centric strategies to thrive in a highly competitive landscape. Our objective was to provide an AI-driven innovation assessment tool crafted for mid-size credit unions.”
‘10 Crucial Indicators’
To do that, it developed “10 crucial innovation indicators or vital signs,” as shown in the graphic.
“The innovation of Elevate Innovation AI lies in its capability to not only identify areas of strength and those needing improvement, but also to provide strategic, actionable steps uniquely suited to each credit union,” the team explained. “This focused approach ensures a path towards enhanced growth, innovation and market relevance.”
The team also identified five levels of innovation, which are shown in the chart.
Assessment Tool
Finally, the team outlined the architecture of its innovation assessment tool that begins with a survey created in Microsoft Forms and which includes 20 questions.
That allows a credit union to determine its current level of innovation and capabilities and to identify areas for improvement. Once that is completed a workflow is created that automates actions across apps and services based on Microsoft GPT, the team explained.
Can’t be ‘Boring’: An App That Leverages Gamification
Team: Innovengers
Prototype: Learn2Earn Rewards
There is a big problem with financial education today, according to the i3 team Innovengers: It’s “boring.”
To remedy that, it has prototyped what it is calling a “revolutionary concept that’s not just changing the game and financial education, but is also setting a new standard for engaging young adults and managing their finances.”
Its offering, Learn2Earn Rewards, uses gamification and is based on three legs: Educate, Elevate and Celebrate.
“Let's face it: traditional financial education can feel like a chore lacking the engagement and relevance needed to capture the attention of young minds,” the team said. “This disconnect has left a gap in financial literacy, a foundational skill every young adult needs to navigate life’s financial challenges. Adding to this challenge, credit unions traditionally…struggle to connect with this younger demographic.”
Innovengers App
To grab a tech-savvy generation, Learn2Earn rewards uses gamification to integrate real-world rewards with the education, including incentives such as discounts on loans or movie tickets for users as they improve their financial knowledge.
‘Friendly & Fun’
“This approach not only educates but also motivates…to develop healthy financial habits, something no other program in the market currently offers in such an integrated, user-friendly and fun format,” the team said.
For credit unions, the platform allows a deeper level of communication and understanding of members, and that leads to deeper relationships, according to the team.
“By keeping an eye on Learn2Earn performance…this creates a scenario where you can be there for the member to celebrate their biggest wins and elevate them out of their losses,” according to the team.
The team said its testing has shown user engagement to be “exceptional, with users frequently returning to it to complete modules” as a result of the gamified approach. Users have reported they feel greater understanding and more confidence, the team added.
“These outcomes really reinforce our belief in gamification as a potent financial education tool,” the team said, adding the user-friendly technology is also critical.
Tailored Offering
For the credit union, Learn2Earn also provides data allowing it to tailor offerings to specific members, the team explained.
“Young adult members are at the heart of this innovation,” the team said. “We've learned that with rewards credit unions can enhance member engagement, particularly among younger demographics, fostering a financially literate future generation through all of their life stages.”
The team is projecting the solution would cost approximately $500,000 to develop, and would reach breakeven by year two and see $800,000 in income by year three.
Using AI in the Car-Buying Process
Team: Charlie
Prototype: Charlie AI
Charlie AI is designed to leverage artificial intelligence as part of the car-buying process, allowing the member to not just find the vehicle they are searching for, but financing from a credit union, all in a few clicks, according to the Charlie team.
“You can search for a vehicle, you can decide your monthly payment and you can start your auto loan application,” the team said. “The idea will transform how members interact with the credit union.
Charlie AI has been designed to be a state-of-the-art search engine embedded directly into the credit unions website.
“This tool isn't just a simple search engine; it is a smart assistant powered by generative AI,” the team explained. “It considers a multitude of factors, including available vehicle listings in the area through various API's, personal member data, current member credit scores and preapprovals on file. It even calculates the monthly payments.”
Video Demo
The team, which shared a video demonstration of the tool at work during the webinar, including a chat using AI to answer member questions or to better refine the search.
The team said it conducted testing and surveys of users, and was very encouraged by both.
According to team Charlie, Charlie AI will be net income positive within two years of launch, and by year three it is projecting “significant growth,” including net income of more than $700,000.
Using AI to Bring a Back in the Day Benefit to the Present
Team: Sherlock Loans & The Curious Collaborators
Prototype: Sidekik
The Sherlock Loans team reflected on the elementary days, when members came into branches, sat with tellers and shared details of their families, dreams and aspirations.
Much of that has been lost in a digital world, according to the team—which is why it has prototyped Sidekik.
“We need to reengage with our members and we need to reignite those humanizing connections that attracted members to us in the first place,” the team said, before introducing Sidekik, which uses AI and real-time data to offer tailored solutions for members at precisely “where they are.”
Guidance & Advice
That includes providing guidance and financial advice, using AI to help users remain on track with budget and savings goals, integrating data, categorizing transactions, and more.
“The user can customize their avatar, motivational factors and other elements in a way that taps into the human spirit,” the team said. “Through the use of voice commands the user can make requests, ask questions or automate routine tasks. Imagine having a human personal financial assistant. It advocates for you and gives you the kind of solid advice you need to keep you moving forward.”
The tool, the team said anticipates members’ needs before they even know it.
“We've seen in our research and conversations with credit union leaders over the past 12 months that far too many credit unions continue to operate in this reactive state,” the team said. “Think about the current challenges on things like deposits and liquidity that many credit unions are facing. It would have been really nice to have some predictive modeling in place 24 months ago in order to provide those proactive signals that there was a liquidity crunch developing.
Looking Inward
“So, while our Sidekik tool is more of a member-facing tool in its orientation, the point is that these new AI technologies can and actually should be pointed right back towards your own credit union's corporate data, towards your financial data, your employee data, your marketing data, your member service center and branch data. When you do that it provides this exciting new capability to help you begin seeing things in advance. When you do that you start taking your critical step and moving out of that reactive state towards a more proactive position.”
The team said the Sidekik platform actually gets smarter as it obtains more information and sees new patterns. It then proactively reaches out and prompts the member with new ideas and new content.
The Reality
“The reality is that the quality of the generative AI outputs are only ever going to be as good as the quality of the data that you're feeding these algorithms,” the team said. “That's really important for folks to understand. Credit unions that really want to harness the power of generative AI and capitalize on this amazing new technology are really going to have to go back and get their data in order.”
The team said it has formed partnerships that help to ensure the data being input is clean and worthwhile.