"How Arizona Financial Credit Union Competes With Big Banks — AI, BNPL & Stable coins | Eric Givens"

Summary

In this engaging conversation, Eric, Senior VP of Research and Development at Arizona Financial, discusses his journey with the credit union, focusing on technology's pivotal role in innovation. From implementing Buy Now Pay Later (BNPL) solutions to exploring AI and cryptocurrency, Eric highlights the challenges and opportunities faced in a rapidly evolving financial landscape. He emphasizes the importance of member-centric strategies, seamless tech integration, and staying ahead of fintech competition. The discussion also touches on the future of credit unions, AI in customer service, and how Arizona Financial adapts to meet changing consumer needs.

Takeaways

• 😀 Eric emphasizes the importance of technology in keeping credit unions competitive, especially with the rise of neobanks and fintechs.
• 😀 Buy Now Pay Later (BNPL) is becoming a key offering for credit unions, and Arizona Financial was one of the first to roll it out.
• 😀 Eric highlights the crucial role of research and development (R&D) teams in implementing new technologies that enhance both member and employee experiences.
• 😀 Connectivity and integration of new technologies with legacy systems like core banking remain a major challenge in credit union technology adoption.
• 😀 Arizona Financial leverages AI to improve internal productivity, including using generative AI tools to assist call center staff with faster access to information.
• 😀 The credit union model is evolving by embracing technology and adapting to consumer expectations, particularly the demand for simpler and faster online experiences.
• 😀 Arizona Financial has worked on improving online account opening and adding incentives to attract and retain members, competing with neobanks.
• 😀 Eric believes that the 'primary financial institution' (PFI) concept is outdated, and credit unions must focus on being 'top of the wallet' for their members.
• 😀 Arizona Financial has implemented mobile app features like Face ID and fingerprint ID for easier and more secure access to accounts.
• 😀 Eric is proud of the department's creation at Arizona Financial, which focuses on staying ahead in technology to meet both member and employee needs.

Q & A

What is Eric's role at Arizona Financial?

Eric is the Senior Vice President of Research and Development at Arizona Financial. He oversees the development and integration of technology solutions for the credit union, focusing on improving both member and employee experiences.

How did Eric start his career at Arizona Financial?

Eric started at Arizona Financial in 2008 as a repossession specialist. He then took on roles in risk management and later moved into areas like card control and digital banking, eventually leading to the creation of the research and development department in 2017.

What is Arizona Financial's approach to technology?

Arizona Financial's approach to technology is to ensure they stay competitive by embracing innovations, preventing technology lag, and adapting to trends that benefit both members and employees. Their goal is to remain agile and able to pivot when necessary.

What is the role of Buy Now, Pay Later (BNPL) at Arizona Financial?

Arizona Financial has adopted BNPL services to meet the needs of their members, recognizing that many consumers are already using third-party BNPL providers. The credit union implemented BNPL as a lending product, using third-party technology to make the process easier for members while reducing fraud and improving financial accessibility.

How does Arizona Financial ensure technology does not lag behind the competition?

Eric explains that Arizona Financial's main goal is to avoid becoming a laggard in technology. They aim to keep up with rapid advancements, focusing on providing good experiences for both members and employees, and ensuring they can quickly adapt to new technology trends.

What challenges does Arizona Financial face when integrating new technologies?

The primary challenge Arizona Financial faces is the integration of new technologies with existing systems, particularly the core banking software. Connectivity between different technology vendors and the use of APIs for seamless data transfer can be a complex and time-consuming process.

How is Arizona Financial using artificial intelligence (AI) internally?

Arizona Financial is exploring AI tools to improve employee productivity and decision-making. They have implemented AI to assist their staff with operations manuals and knowledge management, helping call center employees find answers more efficiently. However, they are cautious and ensure that sensitive data is not used with AI.

What new digital enhancements is Arizona Financial working on for their members?

Arizona Financial is focusing on enhancing their current digital offerings. This includes improving online banking features, simplifying the account opening process, and automating backend processes to improve speed and efficiency. They are also researching new trends, such as stablecoins, to stay ahead of emerging technologies.

How does Arizona Financial view the future of the credit union model amidst competition from fintechs and neo-banks?

Eric acknowledges that credit unions must evolve to stay competitive. He highlights the need to adapt to the digital age by improving user experience, offering incentives, and simplifying processes. Credit unions must accept that consumers will likely hold multiple financial relationships but should aim to be the top-of-wallet institution for their members.

What is one of Eric's proudest achievements at Arizona Financial?

One of Eric's proudest achievements is the launch of the Research and Development department, which has allowed the credit union to focus on technological innovation. He also takes pride in Arizona Financial's early adoption of Face ID and fingerprint authentication for their mobile app, as well as their card control features that help protect members from fraud.