A Credit Union’s Partnership with Alkami & Chimney

Direct Federal, a $815.5M+ asset credit union based in Needham, Massachusetts selected Alkami’s digital banking solutions when reimagining their experience and converting from their previous vendor in 2021. 

Upon a successful implementation, the forward-thinking credit union continued to elevate their digital banking experience and identified an unmet need in the market. They sought a fintech partner who could protect and grow relationships with homeowners.

Homeowners: An Untapped Opportunity in Digital Banking

The credit union recognized that many of their members, who are homeowners, lacked a convenient way to monitor the value of their properties, see available equity, and assess different rates available to them; causing them to leave the digital banking experience for third-party sites. This gap meant that members were missing out on potential financial opportunities, such as refinancing their mortgage or taking out a home equity loan. 

Determined to address this gap, the credit union evaluated emerging fintechs for a solution that could be seamlessly integrated into their digital banking platform. Direct Federal discovered Chimney’s My Home Tracker solution and proposed it as an addition to Alkami’s partner ecosystem as they believed it would benefit the rest of the client community by adding new digital banking functionality that specifically targeted homeowners. 

Bringing the Solution to Alkami’s Partner Ecosystem

Alkami recognized the potential this tool could have for financial institutions, enabling them to:

• Elevate the user experience
• Deliver personalized solutions that offer a holistic financial picture
• Discover which account holders may have a competitively-held mortgage 
• Cross-sell to members to unlock new revenue streams 
• Increase digital engagement via monthly emails 
• Lower acquisition costs for loans 
• Foster member loyalty and retention
• Increase products per member

Working together, Direct Federal worked closely with Alkami and Chimney to integrate My Home Tracker into their digital banking platform. The integration process was smooth, thanks to the collaborative efforts of all parties involved. The new feature was designed to be user-friendly, providing members with easy access to real-time data on their home’s value and equity.

“Direct FCU is proud to partner with Chimney, the provider of an innovative user experience related to homeowner insights for our members. The Chimney team has been nothing short of incredible to work with and made this process so easy with Alkami. This partnership represents our commitment to delivering cutting-edge financial services and a best-in-class seamless digital experience to our members, and we couldn’t be more excited.” 


– ​​Kassandra Martin
AVP, UX Architecture, Design, and Analytics at Direct Federal Credit Union

Measuring the Impact of Chimney’s My Home Tracker

The addition of home value tracking has been a game-changer for the credit union’s digital banking experience. Members now have a clear view of their home’s worth and available equity, empowering them to make informed financial decisions. Since launching Chimney’s solution within the digital banking platform, Direct Federal has experience the following positive business outcomes:
 

Addressing the Needs of Homeowners

• 9 out of 10 enrolled members say Chimney’s My Home Tracker improves their digital banking experience
• 20% of members invited to use Chimney’s My Home Tracker enrolled within the first three months post implementation; driving engagement and product adoption 
• 30% of enrolled users come back weekly to check their home data

Driving an Increase in Loan Volume

After launching Chimney, average monthly Home Equity Line of Credit (HELOC) volume increased by 40% for the next six months. 

Direct Federal activated Chimney’s marketing capabilities to target homeowners with automated campaigns and personalized offers delivered via email; enabling teams to foster member engagement and conversions without lifting a finger.

Campaign Performance

• The Monthly Home Report: 64% Open Rate | 16% CTR
• The Debt Consolidation Offer: 71% Open Rate | 6% CTR
• The Renovation Offer: 60% Open Rate | 5% CTR

Application Growth

In the first six months after implementation, Direct Federal experienced over 15% of their total funded home equity loans generated from Chimney’s solution.

Homeowners enrolled in Chimney’s My Home Tracker showed interest in a variety of products and services beyond home equity. Here’s the breakdown of what homeowners applied for: 

• New HELOCs – 37%
• Existing HELOC Increase: 33%
• Credit Card Balance Transfer: 10%
• Personal Loan: 10%
• Home Equity + Checking Account: 10% 

Elevating the Member Experience 

By integrating Chimney’s My Home Tracker into their digital banking platform, Direct Federal has enhanced the user experience, increased member engagement, and unlocked new revenue opportunities. This successful partnership underscores the importance of innovation in digital banking and the benefits of collaborative efforts to bring market-leading solutions to members.