In the fast-paced financial services market, you can either change or get left behind. Winds of change in member expectations, rising regulatory costs, and the roadblock stemming from legacy systems are the key challenges being faced by credit unions. Keeping pace with the changing member preferences and dynamic technology can be overwhelming.
And far too often, credit unions have defaulted to lag behind by failing to embrace the rapid pace of technological change. For most credit unions, the problem isn’t a desire to adopt technology, but the incessant pace of change means the latest innovations can quickly be deemed obsolete.
To remain competitive, credit unions must commit to future-proofing their organizations, using a sound technology foundation to pave the way for challenges on the horizon. With the right technology in place, no matter what happens, CUs can accelerate and elevate their ability to respond to change, and perhaps even get ahead of what’s next.
Future-ready technology to stay independent
The not-so-good news?
A study by Cornerstone Advisors estimated that 15% of credit unions had still not committed to a digital strategy by the end of 2021, even though 47% of consumers across all generations would be willing to change their primary financial services organization for greater convenience, better CX and access to more services under one (digital) roof. With just 9% of consumers claiming a credit union as their primary financial institution, it seems providing future-ready technology tools and services would be an opportunity to attract new, younger members.
While every credit union is different, a common challenge is the effect of market forces impacting operations and member experiences. New realities like digital banking, multi-device mobility, security breaches, personalized member engagement, etc. must be acknowledged.
Think ahead to stay ahead
Ways to future-proof your credit union
Core processing systems: The key to future-proofing your credit union is the core processing system. To successfully weather the rapid pace of change, your credit union’s core software must be flexible, functional, and adaptable to respond to today’s and tomorrow’s technology advancements. A modern, future-ready core will be the hub that connects your credit union to innovation and enables you to face market forces head-on.
Embrace cloud-based computing: You can’t be all things to all customers, but you can aim to be one-stop shopping for your carefully defined customer base. Moving to the cloud brings new agility and a potential competitive edge to banks and credit unions by adding scalability, lowering IT costs, and providing quicker access to innovation.
Aim at future-focused opportunities: For credit unions, future-focused, open banking is the engine that powers strong innovation that meets members’ evolving expectations. Open banking provides a fast and efficient implementation of applications that create new opportunities, drive revenue, and create operational efficiencies.
Consolidate vendors: Using fewer third-party technology vendors can lower costs, reduce redundancies, enhance security, and streamline compliance. Seek a single-solution vendor who can meet all your needs without overlap and ensure you get the most synergy from your tech investments.
Do digital different, or perish
Most credit unions falling far behind in all aspects of what it takes to compete against large banks and FinTechs in today’s digital world. Your customers are the wellspring of your success and longevity, so prioritize your technology decisions around meeting their needs first. Strategic digital transformation makes it possible to do more with less and keep your credit union on track for steady growth.
And here’s the good news. This capability is no longer the exclusive right of the largest corporations. Credit unions of all sizes can take the steps necessary to respond to the reality of member expectations and target growing their business members.
At Insight Consultants, new cutting-edge technology, wielded by capable partners on your behalf, can now help you bridge the digital divide.
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