Progressive credit unions have long led the financial technology revolution, albeit quietly—some might say too quietly.
More than 80 million Americans use online banking, according to research reports. Yet, how many of those people know that a credit union (Stanford Federal Credit Union) was the first U.S. financial institution to offer banking over the Internet? Did you know that?
Mobile hasn’t quite caught up to online banking, but nobody doubts that it will. And again, few people are aware that two credit unions (Texans Credit Union and USE Credit Union) were the first two U.S. financial institutions to offer mobile banking. While it’s true that these services were launched on devices that now qualify as museum pieces, the role of credit unions in driving financial technology should not be overlooked—even though it typically is.
Mention advanced digital banking technology to most people and which financial institutions come to mind? Probably not your credit union. It seems that the same credit unions that once led the remote delivery charge have somehow become satisfied to play “me too” with the big banks. That’s a shame. But it doesn’t have to be that way.
Credit unions have the opportunity to continue leading in digital banking technology because they’re able to use technology in ways the big banks can’t. For example, many credit unions have business development teams that go out into the community and actually meet their neighbors face to face. These teams can now bring your entire credit union on a tablet, simplifying and streamlining every aspect of business development.
Because most credit unions are community financial institutions (if not by charter, at least by geography), they can tailor merchant e-services to meet the specific needs of local businesses. As opposed to a mega bank that establishes a branch just to leach money off the local economy, credit unions can become an active and integral part of that local economy.
Mobile technology also has the potential to change the way branch transactions are handled. Soon technology will become available that will allow members to initiate branch transactions on their mobile devices. Then when the member gets to the branch, your computer system will recognize them by the presence of that mobile device. When the member reaches the teller window, the transaction will already be queued and ready to finalize. The end result is a fast, flawless transaction that gives the teller more time for meaningful member engagement.
Credit unions are much more nimble than the big banks, so they should be able to deploy these technologies faster. However, better technology will be all for naught if nobody knows about it. Credit unions have long centered their marketing on being better – better rates and better services for example. But how many credit unions go all in on marketing their better technology?
“Me too” won’t cut it in this environment. The credit union industry needs to firmly establish its leadership role in financial technology—and then make sure every single member and prospective member knows about that great technology. A well-marketed mediocre mousetrap will always outsell a better mousetrap that nobody knows about.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
