In case you haven't noticed, we're in the midst of a serious tech boom that, in my opinion, has only begun to pick up steam. It's happening all around us, and the sheer speed of innovation is enough to give you amnesia about how far technology has come in just a few years. Take this, for example: Do you realize that the first iPhone was released in 2007 – less than 10 years ago – and now more than 1,000 apps are added to the Apple App Store every day? Whoa.
With that type of unheard-of market saturation, it's amazing that new tech concepts are still able to grab the attention of the public, which officially has a shorter attention span than a goldfish. The fintech sector specifically is experiencing rapid growth because clever developers have identified unique ways to address real-world problems and improve the life (literally or imaginatively) of the end user. Digital platforms like Robinhood or Ayden have also wisely partnered with talented graphic designers that create engaging, fun interactions and features that draw in younger, more tech-savvy consumers.
More relevantly, they've begun to systematically attack the service offerings of traditional financial institutions, including credit unions. Backed by double-digit billions in venture capital funding, investors are betting against us in favor of capturing the loyalty and business of the dissatisfied and impatient on-demand generation.
I've read more than a few articles about the dangers that fintech disruptors pose to the credit union industry, and frankly, it doesn't scare me one bit. In fact, it energizes me. It also makes me think that our entire industry needs to revisit how we view innovation. Perhaps it's time we finally start calling it what it really is —"finnovation."
I look at it this way – no app, financial tool or revolutionary fintech startup can realistically offer what credit unions provide to their members. We have hands on, personal concierge member service. We have an incredible technological infrastructure in place to safely and securely manage our members' financial livelihoods. We are deeply integrated in the communities in which we operate. We have competitive financial products that evolve with the market, not in spite of it.
So instead of choosing fear, I opt for excitement; aspirational excitement at the prospect of doubling down on our efforts to finnovate in a different way. Core providers don't have the luxury of engineering software in the hopes that it will eventually attract a user base or fill some undetermined, pie-in-the-sky imaginative need. Instead, we must deliver robust, highly functional financial tools and proprietary solutions to consumers dependent on their streamlined implementation and immediate success.
Therefore, our finnovation focus should be on improving the member experience – working to create new efficiencies and designing enhanced interactions, visually stimulating interfaces and more robust, feature-rich functionality in existing technologies. We should also embrace the opportunity to hold focus groups with members to determine their technology gaps and various pain points, and target our development efforts toward building new solutions that solve real-world problems and actually improve the life of the end user.
With this approach, and considering all that credit unions have to offer their members, I believe our industry will prevail – period.
Wayne Benson is president and CEO of EPL, Inc. He can be reached at 205-408-5300 or [email protected].
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