TEGFCU: Driving Deposit Growth with Alkami’s Digital Account Opening Solution

A Credit Union's Success with Member Acquisition

TEG Federal Credit Union(TEGFCU), a $450M + credit union located in Poughkeepsie, New York, has proudly served members since 1969. As they've expanded their operations to members who live, work, worship, or attend school in New York's Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster, and Westchester Counties, they have stayed true to their values of integrity, professionalism, service excellence, and cooperation.

Sticking true to their core values and responsibility to members, TEG's search for a new digital banking platformdid not come lightly. They knew they needed a partner who would enhance the digital banking experience for their members and streamline the account opening process. In addition, TEG aimed to stay competitive with larger institutions by adopting more modern and efficient digital banking solutions.

Obstacles to Overcome with a Reimagined Digital Banking Experience

Before partnering with Alkami, the credit union found their previous provider's digital banking platform offered few updates or enhancements. The user experience felt stagnant and failed to evolve with the ever-changing digital needs of their members. Customization options were minimal and any desired changes required a cumbersome ticketing process, turning simple requests into lengthy projects. This lack of responsiveness and adaptability restricted the credit union from innovating quickly.

Elevating Digital Banking Solutions with the Right Partner for Success

As TEG evaluated potential vendors, they were keen on finding a partner who offered an intuitive user experience with deep core integrations, a strategic product and technology vision, and extensive ecosystem of embedded third-party integrations.

When selecting Alkami, TEG believed that Alkami checked all the boxes for what they were looking for in a new digital banking platform provider.

• Best-in-class digital banking solutions that enhanced the user experience
• Ability to innovate and introduce new products and services quickly
• Improved back-office administration functionality for self-service

A top priority for the credit union was to provide members with a modern user experience that could be regularly updated with new features and improvements, without having to create tickets for simple requests.

To deliver market-leading solutions and grow at scale, TEG was excited to tap into Alkami's partner ecosystem and leverage their fintech partner capabilities to offer members a holistic banking experience with financial wellness features, like SavvyMoney's credit score solution. In addition, Alkami's deep integration with the credit union's Symitar core has enabled TEG's team to build packages to personalize the member journey, manage risk, and provide capabilities based on the member's account type or the products they hold with TEG.

Another key objective for TEG was to create greater operational efficiency in their back-office. By moving to Alkami, TEG was able to deliver members essential digital banking solutions their previous platform lacked, such as in-app card management, seamless integrations for payments, member-to-member transactions, and Skip-A-Pay. This empowered the TEG team to eliminate manual efforts and reduce call center volume.

Alkami's administrative portal has allowed them to make updates directly, without relying on support tickets. TEG's team has been able to automate processes that previously relied on manual efforts, freeing up staff to focus on more strategic tasks and enhancing overall productivity.

Accelerating Membership Growth with Digital Account Opening

Before implementing Alkami's digital account opening solution, TEG required applicants to provide their application data which was then reviewed by operational teams and processed before being manually input into the core system. This cumbersome process was time-consuming for both the applicants and the credit union's staff, often leading to higher abandonment rates and lengthy account opening timelines.

Recognizing that the first impression a member has with their credit union may be opening an account, TEG knew they needed to reimagine the account opening process. TEG introduced Alkami's digital account opening solution to guide prospective members through a streamlined application that can be completed in three minutes or less; significantly improving the user experience with real-time identity verification powered by non-documentary member identification methods.

To drive deposit growth, TEG deployed QR codes and digital advertising to attract new members and increase engagement; touting their streamlined application approach and lack of identification (ID) uploads made possible by Alkami's digital account opening solution.

The credit union has also reduced manual efforts by leveraging automated decisioning for faster, data-driven account approvals. This has not only reduced the time and effort required from applicants but also minimized the workload for the credit union's staff, leading to higher satisfaction and efficiency.

TEG has observed a significant increase in deposits, particularly during promotional periods, as the new application experience made it easier for consumers to take advantage of TEG's special certificate of deposit offers; resulting in $4M of new deposits in the month of July.

TEG's Performance Metrics

Since implementing Alkami's digital account opening solution, TEG experienced:

• 50% increase in deposit account applications
• 74% of new accounts opened were funded
• 62% of applications were auto-decisioned
• $1.7M attributed to new deposits(January - June 2024)

Once the credit union has successfully approved and opened new accounts, they have automatically registered new members for digital banking; driving mobile app adoption and engagement rates.

"When we were evaluating vendors we saw Alkami's digital account opening solution and felt it stood out for the new look and feel, modern identity verification approach, as well as their strategic vision and integration with digital banking. We view our online banking app as our digital branch and felt that Alkami's digital account opening solution exceeded member expectations for seamless, digital experiences and created efficiencies for members and operational teams."

- Cory Shapiro

Chief Operating Officer at TEGFCU

The transition to Alkami's digital banking platform has enabled TEG to innovate the digital experience and compete with megabanks and neobanks at scale. The new digital account opening process coupled with Alkami's digital banking platform has enabled the institution to deliver their members a superior user experience and achieve notable growth in digital engagement and new deposits. By partnering with Alkami, TEG has successfully achieved their strategic business goals and positioned itself for continued success in the digital banking landscape.

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