The Challenge of Fintech Innovation for Credit Unions
Sometimes it's perplexing for credit unions to develop tech capabilities while improving their member experiences.
Fintech innovation, particularly in the trending areas of voice recognition, artificial intelligence, payment strategies and digitalization, constantly evolves, challenging credit unions to develop its tech capabilities while improving member experiences.
Two experts in the financial services field — Priya Dozier, vice president of digital solutions and innovation at St. Petersburg, Fla.-based CUSO PSCU and Becky Summers, a strategic advisor at Lombard, Ill.-based Raddon, a Fiserv company, and provider of research, analysis and strategic guidance to financial institutions — shared their views about financial technology’s direction.
Dozier reviewed the past for future hints. “2018 was the year of artificial intelligence in the fintech space, driven by ‘dorm-room’ startups primarily founded by students at prominent universities looking to extend relevant technology skills while tapping into talent available at the country’s leading universities.”
Dozier foresees an inclination toward improving the member experience and putting metrics solutions to showcase measurable results and outcomes. “As digital interactions continue to grow and members seek self-service options for more complex transactions, we believe that the value of investing in frictionless member experience initiatives will be quickly realized.”
Digital transformation remains as a major driving force in the fintech/credit union alliance with the relationships evolving into more partnerships, collaborations and co-creation between fintech and credit unions.
Understanding members can improve their experience. Summers explained, artificial intelligence provides an opportunity to better understand members and build modeling data allowing credit unions to make more targeted decisions. “These decisions may certainly improve digital marketing; however, we need to consider how this learning provides insights into traditional marketing channels as well.”
One example Summers provided involves utilizing transactional debit and credit data. “Marketing professionals at credit unions would be able to deeply target specific locations for billboards and other advertising based on shopping patterns; AI will help us do this.” This applies to current members primarily, since they provide the needed information to make marketing decisions, it can help better target potential members as well.
For more about innovation, read the full article in the April 10 issue of CU Times.