STOCKHOLM, Sweden–Credit unions here were offered some strategies for improving the member experience with innovation and human connection.

Speaking to the World Council of Credit Unions’ World CU Conference, Cesar Bochi, CEO of Brazil’s Banco Cooperativo Sicredi and executive director of companies belonging to the Sicredi Administrative Center (Sicredi is one of Brazil’s centralized services organizations for credit unions), said the mission of his organization is to deliver good quality service to those who matter most.

“Yes we are a credit union, a financial institution, but what sets us apart is the way we deliver these products and services,” he said. “0ur next mountain is a social one. We go beyond products and services. We offer training, volunteering and social initiatives. We talk about citizenship, governance, cooperatism. Through our financial services we want to support people’s lives.”

What’s most important with all Sicredi member CUs, he said, is that all follow the same values. It’s apparently working, as the Sicredi CUs are adding 1.5 million members annually, he added. 

Drawing Envy from U.S. CUs

It has also managed to do something that would be the envy of U.S. credit unions, and that is to get younger. Brazil has a population of approximately 203 million people, with a median age of 35. Two years ago, the average age of a Sicredi CU member was 43; today, it is 41.

“We have launched initiatives that have brought in younger members,” said Bochi, who spoke in his native Portuguese with his comments translated for English speakers. “Digital channels have evolved but they have not replaced human contact; they leverage that contact. We need to work with this younger crowd, hence the importance of the investment in technology. We sell trust. Financial institutions aim to avoid fraud. We go beyond that.

“Our metrics must be different. We need to abide by a different standard,” he continued. “Yes, we must use technology to improve the member experience. Through open finance we build better services. It is easier than ever to open credit, and also easier to go into debt. We must think about what is best for our members.”

Why Does it Matter?

Why is it so important to consider relationship with the members?, asked Bochi. He noted that, not surprisingly, 90% of Brazilians consider a good experience a deciding factor in their purchase choices. 

When consumers have been surveyed over how they define a high-quality customer experience service, he said the surveys found:

• 46% speed of response
• 42% accurate answers to questions
• 38% staff courtesy and politeness
• 34% knowledge about the product or service

“Everyone wants something quick today,” Bochi told the meeting. “That is the role of AI. AI can identify the needs of our members.”

Interactions must also demonstrate empathy and active listening he said. 

Three Areas of Internal Strength

According to Bochi, a member-centric approach helps strengthen internal capabilities across three areas:

• Engaged teams
• Decision-making
• Ways of working

“Trusting the employees they see every day brings engagement,” Bochi said. “In Brazil today, credit unions are recognized as the best place to work. The member is always the center for us. Trust is a brand. Trust has a face, as well. We have been growing 200 branches per year. It’s not just a transactional experience, it’s an experience that has a face. Trust also has a role in the digital.”

Using NPS

According to Bochi, Net Promoter Score (NPS) is the foundation of its metrics for performance and member trust. It surveys 120,000 people every month and strives to have as many people as possible be rated as “promoters” in the NPS measure. 

“Promoters have a contribution margin 2-4x higher than detractors, in general,” he said. “Promoters are 60x less likely to leave Sicredi. Promoters have a LTV 8-10% higher than detractors in general. Sicredi’s vocation for its members’ satisfaction enables sustainable growth through long-term relationships. We don’t want members to spend a month or a year with us. We don’t want Sicredi to be the only FI members work with; but we do want it to be the main one.”

It deploys NPS rankings across various segments and channels.

Bochi said a report is prepared for staff of each participating credit union branch to see their NPS numbers. It also maps out pain points with all channels and products. For instance, he said 14 pain points were identified when opening a checking account, and 19 initiatives are underway linked to resolving those pain points.

Engagement Beyond the Engagement

Bochi said the objective is to move from a traditional approach to a member-centric approach. To that end, it seeks to turn:

• Transactions into0 interactions
• Products into solutions
• Salespersons into advisors
• The functional into the emotional

“Products and services don’t change much. It is the journey and the experience that make the difference,” Bochi said. “Those who are, take care. And those who take care, stay close.”