The future for credit unions: Go digital or go south

 

In today’s rapidly digitizing world, credit unions are facing greater challenges to their survival than ever before. Some of the key challenges include changing expectations of members, increasing security and compliance risks, and data siloes that hinder the overall service experience for members.

While larger banks and fintech startups are leveraging digital technology to deliver highly personalized and high-tech services to their members, a vast majority of credit unions do not have a plan in place on how to successfully utilize those technologies. Consequently, they risk falling far behind in all aspects that could boost their chances of competing against larger banks and fintechs.

This is causing credit unions to close at a staggering rate of one every two days, according to an Everest Group report. It’s time for credit unions to accelerate their digital journeys, find ways to differentiate themselves from competitors and deliver the service experience that today’s digital members want – if they plan to survive!

Reality check

Are you bold enough to get into the digital game and embrace digital transformation? Because the only way to survive and grow exponentially is to go digital.

Here are three steps to bridging the gap in your digital transformation journey:

1. Focus on what your members want

In tandem with thinking digitally, credit unions must focus on what their members expect from the experience – ease of use, speed, and security. Members’ needs and preferences evolve based on the technologies they use every day. So, credit unions must adapt their offerings to meet these evolving expectations.

Modern credit unions accept the fact that their members want to engage with them in various ways – mobile, online, in-branch and over the phone – and sometimes all at once. This type of customer engagement is called omnichannel engagement.

Technology enables credit unions to personalize customer engagement with an omnichannel experience – by connecting multiple channels to one platform; successfully bridging the gap between online and offline worlds. This allows credit unions to engage their members where they are, on the channels of their preference, at any convenient time.

2. Eliminate silos and integrate disconnected data

Credit unions often deal with a daunting amount of information when providing service to members. Unfortunately, much of the data is scattered throughout disparate data sources that users need to access individually and manually. This usually results in frustrations and delays in retrieving data for a transaction.

A tech solution capable of seamlessly integrating core systems will not only eliminate silos but also enable credit union employees to get a complete view of information on a single access point almost instantaneously.

But why stop there? A digital platform will allow your credit union to have a frictionless transition between mobile and cloud, ensuring higher degrees of productivity and engagement for both employees and members.

3. Resolve compliance and security issues

One of the most critical constraints that credit unions need to deal with when considering digital transformation is compliance requirements. And security happens to be a large part of any credit union’s compliance requirements.

In the digital age, cyberattacks pose a serious security risk, and this risk increases when systems age or are poorly maintained.

A software solution without custom coding enables you to configure the system as you see fit. With a smart solution, you keep track of confidential information, while also eliminating the presence of sensitive information on unauthorized locations. What’s more, having a cloud-based platform where information is automatically updated and securely maintained, there’s minimal chance for loss of information or errors, thereby helping you reduce risk and remain compliant.

Bridge the digital gap

To ensure success and avoid going south, credit unions need to take a strategic approach by leveraging technology that addresses pain points such as enhancing information management, increasing online transaction speed, and improving security and compliance. It’s time to completely rethink your operational process with digital solutions that radically streamline existing processes, positively impact operating costs, and improve the member experience.

One way to achieve a frictionless experience is by utilizing a holistic content services solution with capabilities such as intelligent capture, data management, and workflow automation. With such cutting-edge technology solutions, your credit union can achieve operational agility and increase efficiency and productivity on a thinner cost structure.

To navigate the trends fueling financial services, download the ebook, Master the top 8 trends in financial services.

Bryan Boynar

Bryan Boynar

Bryan Boynar is Hyland's global solution marketing manager for the financial services industry.

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