The Allied Angle

CEO Outlook 2024: Insights for Financial Institutions

The Allied Angle is back for Season 2! To kick off the new year, we're talking with Allied Solutions CEO Pete Hilger to discuss the outlook for financial institutions in 2024. Join us as we dive into innovation, digital transformation, and more. 
 
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In this episode…
 
[0:39] Meet Pete!
[4:28] What are financial leaders saying about 2023?
[5:23] People got caught with their focus lacking.
[6:05] The ones who are challenged and up for the challenge will be successful.
[6:54] Summarize 2023 in five words.
[8:06] They (credit unions) need to understand what they (millennials and GenZ) need.
[9:20] You don’t have to hit a home run every time.
[10:02] What is an innovative mindset?
[10:45] You have to get the right technology because that will ultimately create the efficiencies and margins that you have.
[11:32] If you can’t figure out how to serve the newcomers….you will be irrelevant.
[13:12] The big need is going to be membership growth.
[14:12] Thinking you can go in and invest in AI and the problems are fixed isn’t true.
[15:22] There is so much movement on the consumer advocacy side of things today, I would tell credit unions and banks…
[16:11] Don’t worry about all of the regulatory oversight.
[17:04] If you take out food and fuel, how much inflation do you think we really have?
[18:40] Lending is about emotions.
[21:03] Parting words for the innovation journey.

A 2023 Recap Special

Featuring our favorite guests from 2023, join The Allied Angle team as we look back at the top moments from our inaugural season, including discussions around the liquidity crisis, optimism about new tech and so much more. Stay tuned to the end to hear some faux pas and bloopers from throughout the year. 

Special Edition: Allied Solutions + SundaySky Capturing Hearts in 5 Minutes

It's official, SundaySky and Allied Solutions have won the People's Choice Award for digital innovation in Finance. Join Allied's Charlie Peterson and SundaySky's Ian Gold in this special podcast release as they dish about gaining market advantage through video, digital innovation, artificial intelligence and more. 
 
In this episode…
 
[0:35] Meet our guests
[0:59] Congratulations, SundaySky!
[2:28] What is SundaySky?
[3:21] Three key initiatives for FIs today are tied to deposit growth, efficiencies, and an increase in consumer awareness.
[5:09] If the communication is clear enough, people will take advantage of it.
[5:27] What are some of the dangers of not accepting this type of technology?
[7:20] 83% of internet traffic is video and streaming
[8:09] Why now and not 10 years ago?
[9:05] The analytics have gone deep.
[9:29] There is still not enough video.
[10:21] What kind of changes should an FI expect to see when they embrace this?
[12:24] When you use an outside agency, you get in line.
[13:01] If we go back to the Z and millennial generation, do not waste their time.
[14:56] Back to the ROT (return on time), now your marketing team is free to do other things.
[17:30] I have never seen judges wowed by this type of technology.
[18:30] Generative AI is taking all of the different components of the video you want.
[19:35] The efficiency of the time savings and what we are creating is astronomical.
[19:40] Parting words of wisdom

Lending in Limbo: Decoding the Wonky Financial Forecast

In this episode, we discuss the wonky economic and financial challenges that financial institutions are facing, such as interest rate fluctuations, technology's influence, liquidity concerns, and the need for growth strategies in a rapidly changing financial landscape with Allied Solutions' Chief Lending Consultant Jack Imes. Read more about the wonky economy in the blog Wonkonomy.
 
In this episode…
 
[0:28] Meet Jack Imes
[2:41] Do you have any hidden talents?
[4:12] What is “wonky”?
[5:06] All of the financial institutions got caught flat-footed.
[6:55] We’re seeing credit card balances the highest they have ever been.
[7:52] FIs are budgeting for 5% growth [in 2024]. How are they going to get that 5%. That’s challenging in this market.
[9:00] How is technology affecting how FIs are positioning themselves moving forward?
[10:37] Credit unions are and should be proud of the fact that they are very cautious and conservative.
[12:40] What advice to you have to help FIs with their lack of liquidity?
[14:19] Are we out of the woods yet?
[14:43] With inflation and higher prices, at some point people are going to stop buying.
[15:48] It’s that repeatable approach to their members and communities so we can get through this together.
[16:06] I think we got lucky for a bit.
[16:45] I just want to avoid what they call the ‘R’ word [recession].
[17:21] We see credit unions do things that other financial institutions won’t.
[18:18] Remember, wonky doesn’t mean bad. Wonky is a great way to get someone’s attention.

The Transformation Blueprint: Talking About Organizational Change

Strategic planning is just around the corner and organizational transformation is a topic for many financial institutions. Allied's EVP, Chief Strategy & Technology Officer Dave Hilger joins the pod to discuss how to optimize your people, processes, and organization for future growth. 
 
 
In this episode…
 
[0:35] Meet Dave Hilger
[4:31] Why is planning for growth imperative to a company’s future?
[5:00] The next goal is how to prepare to be a long-term, successful company.
[5:49] Covid did not impede us or our success one bit.
[5:57] Should other companies consider OCT?
[6:30] How do we become a bottom-up-driven company?
[7:42] This [initiative] is wildly different from what we used to do.
[8:25] How did you lay the foundation?
[9:13] What do we want to do? Why are we here?
[9:20] Do you recommend using an outside partner?
[9:57] Threats are everywhere, the world is changing. Right now we are in a tough lending environment.
[10:38] We try to do too many things, in too many directions.
[11:31] You have to plan for change, you have to be willing to change. I think you always have to question.
[13:10] How did you get your team excited for change?
[13:54] Sometimes the folks steering the ship forget what it’s like to run the ship.
[14:34] We had open, harsh criticism.
[15:47] I get jazzed about the concept of change.
[16:30] Words of wisdom for the company looking to create or re-evaluate their strategic plan

Banking On Video: Turning Heads in the Attention Economy

Capture your customers' attention with video and by leveraging artificial intelligence.  Allied's own Charlie Peterson, Senior Vice President of Strategic Initiatives, joins the pod to discuss how Financial Institutions can improve the customer experience. 
In this episode…
[0:30] Meet Charlie Peterson
[1:54] What is the Attention Economy and why should financial institutions be familiar with it?
[2:36] Video is the answer.
[3:50] 98% of all text messages are read within 3 minutes.
[4:32] Should FIs be worried about SaaS tools?
[5:25] You should have your eyes wide open to opportunities to be better at what you do.
[7:12] No special skills required to use video editing tools.
[8:17] How do we know that video is going to stick around?
[8:55] Viewers retain 95% of a message they watched via video compared to 10% when reading it.
[9:21] Why are some institutions hesitant to evolve and keep up with trends?
[10:25] Elevate your game and deliver what your customers are looking for.
[11:00] The cost of NOT evolving and transforming. 
[13:35] Best practices for using video.
[14:24] 83% of the internet traffic is dominated by streaming and video.

Risky Business: Inside Today’s LPI & Mortgage Tracking

Allied Solutions’  Senior Vice President, Mortgage Solutions Group Jason Sweeney joins The Allied Angle to discuss the current state of mortgage, LPI, and the future of technology in lending.
In this episode…
[0:35] Meet Jason Sweeney
[2:00] What’s your go-to karaoke song?
[2:49] What brought me into this industry is pure chance.
[3:22] What has changed the most [in this industry] is an intriguing question.
[4:00] We are at the mercy of the US postal service.
[4:30] False placement is the most disruptive component to a borrower’s venture in owning a home.
[7:23] Mortgage and LPI have been making big news recently…
[9:37] Is there a way for lenders to make sure their data is transferred accurately and in a timely manner?
[13:52] We’ve really deployed automated web verification technology…
[16:39] Going through the proper compliance, and sending a text message is critical.
[20:04] AI has quickly infiltrated every industry…
[24:47] This is concerning for everyone…it is very difficult to get certain types of insurance through the standard channels in high-risk/high disaster-prone areas.
[27:06] I can see some of these carriers coming back into these areas when we can renormalize how these catastrophic events are dealt with.
[27:21] Where do you see the mortgage and LPI industry in five years?

What’s New (and Used) in Auto Finance

New and used car prices, sky-high interest rates and the looming impacts of inflation. Director of Finance Company Markets, Suzi Straffon, breaks down the latest trends in Auto Finance. 
In this episode…
[0:31] Meet Suzi Straffon
[1:35] How did we get here?
[2:34] I saw an interesting stat – 88% rise in index pricing from April 2020-January 2022.
[5:25] Also on the table is a potential recession, many analysts expect a mild recession.
[8:00] Things that are affecting default rates.
[9:27] It’s really expensive to own a vehicle.
[9:41] The average transaction price for a new vehicle is $48,700.
[11:05] Used car prices have come down.
[13:38] Vehicle affordability is going to continue to be a challenge.
[16:07] The CFPB’s focus the last few years and how lenders are responding.
[19:01] Right now, there is a big competition for loan share.
[21:45] In this market, would you purchase new or used?

Unraveling CPI: Safeguarding Assets & Understanding Risks

Allied’s Senior Vice President, Client Experience and Risk Management Services Anne Holtzman joins the podcast to talk about why CPI is such a hot topic. Anne covers what she’s been seeing in 2023, the effects of a booming used car market, challenges FIs are facing, and her predictions for the backend of the year. 
In this episode...
[0:26] Meet Anne Holtzman 
[3:46] Why CPI, why is this such an important topic? 
[6:10] In 2023, we've seen the highest auto default rates now up to almost 0.94%. 
[6:26] A decline in automobile car values. 
[8:19] The average interest rate on a used vehicle is 10.5%. 
[9:17] Continue to see restricted demand on vehicles as we move through 2023 and 2024. 
[11:10] With inflation, a much higher cost to repair vehicles. 
[11:52] Delinquency or deficiency balances, are going to return. 
[12:34] If you're not lending, then the focus is always on risk mitigation. 
[13:50] About 36% of the repossession agent market was lost. 
[14:28] We are going to see decreased recovery rates and an increased need for technology. 
[18:49] What are your market predictions going into the back half of 2023? 
[19:06] Are vehicles going to be affordable for the main-line consumer? 
[19:50] Technology, digital engagement, and AI are going to make a big mark. 
[20:39] 2024 will be a year of refinance. 
 

The Lowdown on Alternative Deposit Solutions

The need for deposit solutions is on the rise. Allied Solutions' Charlie Peterson breaks down traditional and non-traditional solutions to help Credit Unions navigate turbulent economic times.
In this episode...
[0:28] Meet Charlie Peterson[1:51] Liquidity Crisis -- why so much “hype” around it?[3:22] Organic lending is starting to come back, and people are getting nervous because...[4:00] 75% of CFOs are nervous, 25% are “game on”.[5:44] Strategic planning became a strategic adjustment conversation.[6:33] Nontraditional ways institutions can achieve the same goals...[7:01] What is a “broker deposit”?[10:01] When looking into an investment or new deposits, talk to your regulator.10:32 You need a solution that is more infrastructure based.11:02 If you are not able to give your members or consumers what they need, that’s a high cost.[12:25] At the end of the day the low-income credit unions (LICUs) have a greater demand (for deposits).[12:45]: A: Can CUs use secondary capital in conjunction with DTC eligible share certificates/ broker deposits? absolutely![13:14] Its most important that you are looking to bring the deposits in the door.13:47 Time is an enemy, right now pull the trigger and make a decision on what you want to do... make more loans to your members.[14:00] Newer channels available to financial institutions - technology, everything is technology.14:38: From a consumer’s perspective...[17:32] 83% of all internet traffic is estimated to be streaming and video.[18:12] A homework assignment for listeners- open an account with your competitors.[19:49] If a customer experience is strong, WOM is one of the best things that can happen.