How to Prepare Your Credit Union for a Technological Shift

Fintech innovations have strengthened credit unions’ ability to consistently serve their members’ changing needs. Nonetheless, credit unions cannot grow complacent with the current technological landscape. Rather, they should be actively forecasting what disruptive technology shifts are on the horizon. This is a daunting task with a variety of inherent challenges. For example, even if you correctly predict the shift, your credit union could fail to adequately adopt the new technologies. According to the Harvard Business Review, “any institutions integrate technology “too slow[ly], primarily due to a ‘lack of urgency’ and poor communication about the strategic benefits of [the] new tools.” Credit unions cannot afford to succumb to such mismanagement, allowing other entities to gain competitive advantages. Consequently, your credit union must begin preparing now to ensure you are able to adapt quickly and efficiently to a looming technological shift.

So what steps can your credit union take immediately?

Solidify Feedback Processes

The best indicator of a technology shift occurring is feedback directly from your members. Therefore, credit unions need to solidify their feedback process to ensure they are completely aware of their members’ dynamic demands. There is no one right way to do this. Nevertheless, credit union leaders must formulate a process that best fits the needs of their members, the resources of their institution and the capabilities of their employees.

Train for the Future

Credit unions need to hold trainings that focus on providing their employees with skills that can complement a potential technological shift. One McKinsey & Company study showed “more than one in three workers may need to adapt their skills’ mix by 2030” to meet changing landscapes. Your trainings ought not solely focus on technology, but also guide your employees’ ability to adapt to change within the institution. For example, your training sessions should center on “continuous improvement and include both technical training … and leadership development,” according to Deloitte. By investing in the training of your employees now, your credit union will reap the long-term benefits whenever a technological shift does occur.

Formulate a Contingency Plan

Credit union leaders should undertake a comprehensive assessment of their institution, centering on where potential inefficiencies exist within their organization. From this evaluation, leaders can establish a contingency plan that accounts for where and how new technologies can be seamlessly integrated. This strategy will help to get the ball rolling in the right direction once a credit union actually begins altering its course in the midst of a technology shift.

Reassess Hiring Methodologies

Credit unions should reassess their hiring methodologies to ensure their future workforces can solve new, complex technological issues. As automation and artificial intelligence continues to progress, many theorize that such innovations will drastically alter and disrupt the fundamental skillsets credit union employees will need to perform day to day tasks. Specifically, a McKinsey & Company report found that “[a]utomation will accelerate the shift in required … [technological and higher cognitive] skills” for workforces. Therefore, credit unions must begin looking to the coming future and adopting hiring strategies that position their workforce and institution for long-term, sustainable success.

By implementing the above principles, credit unions can be better prepared for the next technological shift. Through these strategies, your credit union will be properly positioned to meet your members’ needs – now and into the foreseeable future.

Jami Jennings is Director, Digital Channels at EPL, Inc. She can be reached at 205-408-5300 or jami.jennings@epl.net.