The End of a Transformative Decade & Look Ahead: Part 3

How much has financial technology changed in the last ten years? Will the past decade foretell the future? A number of fintech professionals provided some perspective from their frontline vantage point.

This is the third article in a series highlighting their reflections continues:

Tim Smith, chief revenue officer, FirstClose

Over the past decade, the financial industry has had to grapple with shifting consumer demands more so than ever before. With technology becoming an integral part of everything we do; credit unions have had to move quickly to incorporate technologies that can help meet those consumer demands before they inevitably change again.

“The expectation of receiving everything instantly has undoubtedly influenced the way members expect to interact with their credit union.” They want everything to be available in real-time and they want to be able to interact from anywhere at any time. This is why so many have adopted online-based tools, because they allow members and credit unions to interact from anywhere at any time.

This expectation of real-time and instant results will only grow stronger as we enter the next decade. This is why automation will play a pivotal role. Already, credit unions are adopting automation to help streamline their work and help members even faster than before. Adopting greater automation in a credit union’s lending operations could not only help them meet their members expectations, but help them save time and money, as well.

Griffin McGahey, president, HC3

In 2020, we can anticipate that the credit union industry will continue sustaining its efforts and initiatives to achieve a true digital transformation throughout its operations and member touchpoints. This transformation is so crucial for credit unions, because of their dedication to member service. This commitment dictates that they must provide a unified digital experience that supports members’ heightened expectations. Much of the work credit unions must do to achieve this transformation is behind the scenes, so meeting members’ expectations for all systems to work seamlessly can be incredibly challenging.

Beyond meeting members’ changing expectations, credit unions should look for new ways to deploy analytics to improve members’ experiences in new ways. In particular, analytics can improve member communications by creating a more personal experience through all channels, including web, mobile, print and in-person in the branch.

Heading into the new year, many economists have predicted that the industry may experience an economic slowdown that could cause financial institutions to tighten their lending practices. During a period of interest rate changes, credit unions should create communications strategies around valued member services that can sustain their operations through fee income, rather than mainly lending.

Philip Elwyn, vice president of client and partner success, IMM

A significant elevation in digital transformation as a result of the introduction of new hardware, technology and bandwidth that enabled credit unions and their members to interact and conduct business in a digital environment marked the last 10 years. “Credit unions shifted from a primarily paper-based environment to an electronic environment which in turn eliminated many of the cumbersome, manual processes while enhancing member experiences.” Credit union members can complete document-signing transactions faster from virtually any location, and at any time regardless of their credit union’s operating hours. Eliminating the need to rely on paper documents and related processes frees credit unions to streamline operations, drive down expenses and provide members with a more secure and convenient transaction experience.

Branch transformation was among the top priorities for credit unions, ensuring they were able to provide members a more engaging, richer experience when making a branch visit, as well as streamline subsequent back-office operations. Leveraging e-signatures, credit union members can now complete a majority of their banking needs electronically, including signing documents, whether they are physically in the branch, or at a remote location. Additionally, using eSignatures enabled many credit unions to broaden their geographic reach and expand their membership without adding new resources or new branch locations

“Adapting to evolving member expectations and delivering financial services and products in a digital, on-demand environment, regardless of the member’s physical location, will be imperative to the future relevance and subsequent success of credit unions.” Credit unions that do not prioritize digital transformation risk significant attrition and will quickly become irrelevant to the next generation of accountholders.

Pradeep Ittycheria, chief technology officer, Kasasa

Looking ahead, we will see more financial institutions using data-driven marketing. “High-performing businesses use 51% more data-targeting and segmentation than low-performing businesses. Only 4% of financial services have shifted to predictive marketing, and those that have made the switch are more successful than those who have not.”

Still, it is not enough to just use data to drive your marketing. “Our research has shown that with a unique data set, you can iteratively improve marketing programs across a network of financial institutions using common products and marketing. Allowing data to drive your consumer relationships will add value for credit union members as well.”

Whitney Loe, credit union director of business development, Ignite Sales

Over the past 10 years, there have been major advancements in the credit union space for the member experience. Member engagement was solely determined by criteria for membership, but fast forward a few years and the top priority became ensuring employees in the branch and call centers were fully capable and equipped to help members with their needs.

However, there has been a huge shift in the role of member engagement as younger generations seek financial support. In fact, the way your credit union engages with members will be the deciding factor in how your organization attracts and retains members. To deliver a heightened member experience, credit unions must address newer generations’ demands and engage with potential members on their own terms and pace. Credit unions already have a lot on their plate, like competing with banks and maintaining compliance, so investing in solutions that prioritize engagement and empower members with digital conversation allows credit unions to fulfill an exceptional member experience.