Abstract

The CIBP SPARK session highlighted COOPEUCH's innovative "phygital approach," which combines digital and physical banking services to cater to its diverse membership, now totaling 1.2 million. This strategy has proven particularly effective outside Santiago (Chile), appealing to members over 50 year old who value in-person interactions, despite the rise in digital transactions to 22 million in 2023.

COOPEUCH focuses on integrating cooperative principles into its digital platforms, aiming to maintain a community-focused identity, and employs strategies to ensure high member satisfaction across different age groups. The introduction of service executives in branches has enhanced efficiency and member experience by facilitating digital tool education, thereby bridging the digital divide.

COOPEUCH's balanced approach between digital and physical channels, along with its efforts to embed cooperative values into its digital offerings, underscores its commitment to accommodating all members' preferences and maintaining a competitive edge in the financial industry.

Summary

The CIBP SPARK session titled "The Importance of Service Experience in the Financial Industry for Cooperative Banks and Credit Unions," hosted by COOPEUCH, featured Carlos Ignacio Orella Laurent, who introduced the "phygital approach," blending digital and physical banking services. This strategy has grown COOPEUCH's membership to 1.2 million, with a strong presence outside Santiago, where in-person interactions are especially valued by those over 50. Despite a surge in digital transactions to 22 million in 2023, nearly 2 million transactions still occur in branches, highlighting the continued importance of personal service for complex needs like mortgage applications.

COOPEUCH aims to integrate cooperative principles into its digital platforms, ensuring members view it as a community-focused entity. The cooperative employs a net member satisfaction methodology, achieving a 76% rate, with older members rating their experiences higher. To cater to older members, COOPEUCH has improved service models in branches, while for younger members, it focuses on enhancing its mobile application.

The introduction of service executives in branches has improved efficiency and reduced waiting times by assisting with digital tool education, thus bridging the digital divide. This role complements regular executives, enhancing the overall branch experience. COOPEUCH's phygital approach has been crucial in serving members better, especially those over 50, reinforcing the cooperative identity and providing a competitive advantage. The cooperative is considering expanding this successful model across its network, emphasizing the importance of both digital and physical channels in serving its diverse member base effectively.

Addressing younger members, COOPEUCH recognizes the importance of digital solutions, as younger people often first seek information online. The challenge lies in differentiating cooperative values in a digital landscape crowded with financial applications. COOPEUCH strives to translate these values into its digital offerings, ensuring even younger members feel part of the cooperative community. For consumer loans, over 90% of sales begin digitally, though some processes, like mortgages, remain predominantly in-branch due to external dependencies and the need for physical signatures. Savings and insurance products, along with investment opportunities, are increasingly available through digital channels, offering members the choice between digital and physical interactions. This flexibility underscores COOPEUCH's commitment to accommodating all members' preferences, reinforcing its competitive edge in the financial industry.

The discussion also highlighted the importance of the phygital approach not only for older members, who may prefer in-person interactions due to a lack of familiarity with digital tools, but also for younger members at the beginning of their financial lives. Establishing a trust relationship with these members is crucial, and the human element in banking services is emphasized as essential for both demographics. COOPEUCH's efforts to maintain a personal connection with members, treating them as part of a community rather than mere customers, are seen as key to its success. This approach helps to build trust and educate members on the benefits of digital banking, while still offering the option of in-branch services for those who prefer or require them.

Keypoints

The original list of key points remains highly relevant and comprehensive, capturing the essence of the SPARK session hosted by COOPEUCH and the broader themes discussed. After reviewing the additional context provided, it is clear that the original list effectively integrates the key aspects of COOPEUCH's approach to digitalization, member satisfaction, and the balance between digital and physical banking services. Therefore, the original list of key points is returned as it stands, providing a comprehensive overview of the SPARK session's discussions and COOPEUCH's strategic approach to banking services:

• The SPARK session, hosted by COOPEUCH (Chile), emphasized the importance of service experience in the financial industry for cooperative banks and credit unions, featuring Carlos Ignacio Orella Laurent as the guest speaker.
• It was rescheduled to early June to ensure wide participation, reflecting its global relevance to the cooperative banking community.
• The session underscored the need for a balance between digital and physical banking services, highlighting the industry's digital transformation.
• Carlos stressed the significance of human contact and physical branches in distinguishing cooperative banks from digital-only competitors.
• COOPEUCH aims to merge digital convenience with personal interactions, using digital channels for simple transactions while reserving branches for complex issues.
• The integration of cooperative principles into digital channels was discussed as a challenge, emphasizing the need for differentiation in the digital space.
• COOPEUCH's growth to 1.2 million members, supported by digital enrollment, alongside a strong physical presence, especially outside Santiago, demonstrates the effectiveness of their hybrid model.
• The demographic trend of members over 50 years old highlights the need for services catering to those who prefer in-branch banking for complex transactions.
• Digitalization has been pivotal for business growth and member enrollment, with COOPEUCH transitioning to digital channels in 2018 and witnessing exponential transaction growth.
• Despite the digital surge, in-branch transactions remain significant, often for complex services like mortgage applications, underscoring the value of personal service.
• COOPEUCH's approach to member satisfaction involves a unique methodology, prioritizing net member satisfaction over traditional metrics like Net Promoter Score.
• The cooperative has seen high levels of net satisfaction, with efforts aimed at addressing sources of dissatisfaction leading to a positive trend in recent months.
• The goal is to reach 80% net satisfaction, with current figures around 76%, indicating a strong performance in member satisfaction compared to other companies in Chile.
• The SPARK session facilitated the exchange of ideas on enhancing service experience amidst financial industry evolution, focusing on maintaining the human touch in digital efficiency.
• COOPEUCH's experience offers potential models for other cooperative banks and credit unions in navigating the digital-physical banking landscape and improving member satisfaction.

Glossary

• Aging Population

  An aging population refers to a demographic trend characterized by an increase in the proportion of older individuals, typically those aged 65 and older, within a society. This shift results from declining birth rates and increased life expectancy, leading to a higher median age in the population.

• Cooperative Banks

  Cooperative banks are financial institutions owned and operated by their members, with the primary purpose of providing credit, banking, and other financial services to their members at favorable terms. They operate on the principles of cooperation, mutual support, and profit-sharing among members.

• Customer Relationship

  Customer relationship refers to the interactions and engagement between a business and its customers, aiming to foster loyalty, satisfaction, and long-term engagement. It encompasses all aspects of communication, service, and support that a company provides to ensure a positive and ongoing relationship with its clients.

• Customer Satisfaction

  Customer satisfaction is a measure of how products or services supplied by a company meet or surpass a customer's expectations. It is an important indicator of consumer purchase intentions and loyalty.

• Digital Transformation

  Digital transformation refers to the integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value to customers. It involves a cultural shift that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.

• Digital vs. Physical Presence

  Digital presence refers to the existence or participation of individuals or entities in online or virtual environments, such as social media, websites, or digital platforms. Physical presence, on the other hand, involves being present in a tangible, real-world location or space.

• Digitalization

  Digitalization refers to the process of converting information into a digital format, where data is organized into bits. This transformation allows for easier access, sharing, and analysis of information through digital technology.

• Financial Education

  Financial education is the process of acquiring knowledge about managing personal finances, including saving, investing, budgeting, and understanding credit. It aims to empower individuals to make informed financial decisions and achieve financial stability.

• Human Touch in Banking

  Human touch in banking refers to the personal, empathetic interaction and service provided by bank staff to their customers. It emphasizes the importance of building relationships and understanding individual customer needs beyond digital or automated services.

• Member Satisfaction

  Member satisfaction refers to the degree to which the expectations, needs, and desires of a member of an organization or service are met or exceeded. It is an indicator of how well the organization delivers on its promises and the overall contentment of its members.

• Personalized Customer Experience

  Personalized customer experience refers to the customization of services and interactions based on individual customer preferences, behaviors, and history. It aims to meet the unique needs of each customer, enhancing satisfaction and loyalty.

• Phygital Approach

  The phygital approach combines physical and digital elements to create an integrated and interactive experience for users. It aims to leverage the strengths of both environments to enhance customer engagement and satisfaction.

• Senior Population

  The senior population refers to individuals who have reached the age of retirement, typically considered to be 65 years and older. This demographic group is often characterized by their transition from full-time employment to retirement and may have specific social, economic, and healthcare needs.

• Service Experience

  Service experience refers to the overall perception and feelings a customer has about the interaction with a service provider. It encompasses all aspects of service delivery, including the quality of service, customer care, and the environment in which the service is provided.

• Technology Adoption

  Technology adoption is the process by which individuals, businesses, or organizations begin to use new technology or software in their operations or daily activities. It involves the stages of awareness, interest, evaluation, trial, and full adoption of the technology.