The pillar of the Credit Union industry is member service. Credit Unions have strong relationships with their members and strive to do what is right. Here Credit Unions must be for ways to make their services more efficient and profitable to. Process automation is the first step. The second step is when even the decision making is handled by machines, using advanced machine learning and artificial intelligence to make real time, 24×7, zero error operations possible.
Why credit Unions need to implement AI?
AI goes much beyond the binary world of lend-do not lend decisions. It can improve customer personalization, identify patterns and connections that humans cannot, and answer questions in real-time.AI is an opportunity to deepen those already strong member relationships. Artificial Intelligence can automate and improve services delivered to members while also improving your Credit Union’s bottom line. Firms can use artificial intelligence which is based on the premise that machines can learn and adapt from experience, rather than rely exclusively on pre-programmed logic.
Implementing Artificial Intelligence for Credit Unions can allow :
1. Offer a new service to a member at an opportune time
2. Provide an even greater customer service when a member has an issue
3. Deliver the convenience members seek and delight your customers
AI offers tremendous opportunities to revolutionize operations in the Credit Union entity. Machine learning can process terabytes of data in seconds, which humans could not process in a lifetime. This sheer power of modern computing will lead to faster processes, fewer compliance problems, better customer experience and more inclusive lending overall. On the flip side, AI can also match firms with the right customers. AI analyses and authenticates users’ transactional data, and income verification and spend analysis helps highlight risk factors used for a richer credit scoring experience. This will reduce the risk of default and increase borrowers’ financial profiling. It can also help automate parts—and maybe all—of the process. Artificial Intelligence recognizes when a specific service/offer is relevant to a member and then triggers that offer.
Artificial Intelligence for Credit Unions: Areas to focus
1. Member onboarding
2. Loan Application and Risk Decisions in Credit Underwriting
3. Customer Service
4. Credit Scoring
5. Digital experience including Mobile and Web
6. New offers / Services / Products
Applications of AI in Credit Union Industry
AI is not just for the big banks! Credit Unions can benefit greatly from this technology by partnering with fintech and deploying solutions without having to build expensive infrastructure. AI can be an agile tool for your Credit Union that can be personalized to fit your needs and the needs of your members
1. Credit Decisions: determine quickly whether to accept an application
2. Fraud Prevention: detect fraud in online credit card transaction
3. Chatbots: provide simple answers to some of the more common member service questions
4. Mobile Deposit: Decipher and convert handwriting on checks into text
How can Insight Consultants help you?
Though the benefits are numerous, many Credit Unions holding backin AI implementation. We can help you remove the roadblocks in your AI implementation journey. Insight Consultants specializes in digitizing the Credit Union ecosystem. We serve Credit Union entities in the technical advisory, software development, and fintech services space. We can help you transition from an offline way of working to a digitally streamlined one that includes paperless operations, workflow-automated decision-making, and credit scoring powered with insightful analytics.
Contact Us to learn how we can help you!
