Magnify logoSubscribe To Magnify

SHAZAM Advisory Council Meeting Takeaways

In November 2023, the SHAZAM® Advisory Council (SAC) held its quarterly meeting to continue cultivating better client engagement, collaborate on topics to help make our products and services better and discuss financial service industry trends and opportunities

Senior-level staff from community banks and credit unions volunteer to be part of the council and participate in bi-annual advisory council meetings. These meetings give SHAZAM the opportunity to understand client needs better and help our financial institutions reach their goals. Below is an overview of the key topics discussed at the last meeting and our top takeaways.

Operational Excellence

SAC members shared feedback on services that would enhance their operational efficiencies, including improving the fraud management experience and after-hours call center support.

Council members identified Verafin® for ACH and reporting as the top tool or solution used by their institutions to combat fraud. Among potential fraud types, check fraud is a top concern, and there’s a strong desire for a better solution than what’s available today. SHAZAM also shared our plans to incorporate ACH Positive Pay into our core and digital offerings.

When discussing faster payments, council members shared they are concerned about fraud risks associated with sending instant payments. Some members indicated the lack of an automated, 24/7 fraud control system could stop some financial institutions from enabling accountholders to send instant payments. The group brainstormed potential faster payments fraud solutions, including fraud decisioning based on artificial intelligence, multifactor authentication to verify the identity of the sender and receiver, and more.

To wrap up our operational efficiency discussion, council members shared minimal hold times for callers for after-hours fraud support is particularly important to them.

Credit Card

SAC members shared their thoughts on credit card programs, opportunities, and desired features and capabilities. Key takeaways include:

  • SHAZAM shared the three types of programs in the marketplace — agent, full-service and in-house.
  • Customer service is a pain point, no matter what type of credit card program is in place.
  • Credit card program rewards are a priority.
  • Most council members want a seamless experience for both their internal staff and their customer experience across core and digital banking portals.

After the meeting, council members received a survey about their current credit card program offerings. Nearly 80% of survey responders shared they had either an agent or full-service program in place. The survey also included questions about a potential SHAZAM-sponsored credit card solution. Nearly 80% of survey responders indicated their interest in such a program if SHAZAM were to offer it.

Brand Discovery

This discussion allowed SAC members to offer feedback on the SHAZAM brand strategy advancements. During the discussion, council members shared they rely on trade associations when making vendor decisions. Members said they appreciate receiving information on ancillary products complementing their current offerings.

Core Track

SAC members explored needs, pain points and desires related to loans processing. The group dug into each loan area to understand where core platforms could enhance the experience for staff and accountholders.

For loan participation accounts, the primary need council members identified was automation between the core and third parties. This type of automation would allow reconciliation of accounts, reducing the burden of keeping accounts in balance.

For escrow accounts, the central theme among council members was the need for electronic delivery of periodic statements and notices, along with standardized statements that internal staff and customers could understand easily. From a service perspective, financial institutions need a more efficient way to collect updated insurance renewals annually and the ability to offer other payment options, including ACH, wire and faster payments.

Next, the group discussed secondary market loans. The primary need identified by council members was enhanced reporting within the core system and more efficient reporting between the financial institution and reporting agency. The group also discussed their desire for a pricing engine that compares offers across different agencies.

The final loan processing topic discussed by council members was limitations on loan types due to core providers. The group identified a need for integration between the core and dealerships to support dealer and floorplan loans. Council members would like to offer a way to get information from the dealer to the core system and provide real-time approvals, even during weekends and holidays.

The group expressed a need for better servicing options for reverse mortgages. Reverse mortgages are unique in that no payments are required from the borrower until they move out of the residence or pass away.

Faster Payments

SAC members shared their faster payments implementation plans and gave input on the user experience. Notable insights include:

  • A majority (nearly 70%) of financial institutions represented plan to implement RTP® and FedNow® credit receive services within 1 – 3 years.
  • Financial institutions are much more concerned about the risks of sending instant payments than receiving them.
  • Council members shared that large businesses, small businesses and consumers were the customer types that might find sending instant payments appealing.
  • Payroll, bill pay and expedited/late payments were the most common use cases identified for sending instant payments by council members.
  • Most financial institutions would charge their customers to send instant payments, while some said they would consider adding instant payments features into existing products and services instead of charging per transaction.
  • Over 50% of the financial institutions represented are still evaluating if they want to implement RTP and FedNow send and receive capabilities.

Looking Ahead

The feedback SHAZAM receives from SAC meetings is invaluable. We use it to improve our products and services and strengthen financial institutions. We’re gearing up for our spring SAC meeting in April and finalizing our discussion topics. If you have a suggested discussion topic for a future meeting, please let us know.