Do Credit Unions Really Want an All-Digital Future?

The demand for remote and digital technologies is huge – and still growing – nearly one year into the pandemic. From telehealth to school by Zoom, the push for digital is nearly ubiquitous across industries. Is this what we want – is this what consumers want? In this piece, we’ll discuss the need to examine where and when digital and remote services demand a human element to match consumer expectations.

The Great COVID Tech Boom

The coronavirus has accelerated digital uptake like never before across a wide variety of industries. For almost a year now, consumers have consistently preferred the safety of online or over-the-phone purchasing and services over the risk of in-person interaction.

But along the way, they discovered that digital isn’t just safer – it’s also more convenient. This has long been a truism for younger generations, or in areas where digital’s success is long proven, such as eCommerce. So, millennials turning to one-click shopping on Amazon? Old news. But senior citizens enrolling in Medicare wholly online? Students receiving schooling on Zoom? Patients turning to telehealth before going to a doctor? These are all trends that were accelerated by the virus. Consumers from all demographic groups are now going online to access services that are not traditionally associated with digital.

This expansion of digital demand is no stop-gap, either. Even if the entire country were to be vaccinated tomorrow, it’s unlikely we would see a return to pre-coronavirus habits.

CU Members Say ‘No’ to Mandatory Branch Visits

Now let’s take a look at our industry, banking. The researchers at my company were interested in seeing whether credit union members would continue to opt out of branch visits in the future when the coronavirus is presumably over. The survey found that 76% of credit union members plan to avoid or reduce branch visits going forward, with 25% of that group saying they don’t see any circumstance that would bring them to the branch.

It’s not only that members now prefer to bypass the branch visit. Many now view mandatory bank visits as a business-blocker. The survey found that 47% of credit union members would be less likely to attend to a financial task if it required them to visit a branch. Another 33% would avoid taking out a loan if it forced them to go to a branch.

Coronavirus risks aside, today’s consumers expect to have a choice about where and how they conduct business and get things done. And when given a choice, they hands-down choose digital.

So Where Does That Leave the Human Touch?

Don’t jump to trade in associates for bots, and call center agents for a pure-play IVR system just yet. Despite changing consumer attitudes toward in-person business, human beings aren’t obsolete yet (phew!).

From what I’ve seen with companies across industries, consumers get maximum value when the businesses they interact with use digital tools for routine tasks and save human talent for value-added activities. This is particularly true for credit unions, whose members are eager for a human being to acknowledge and understand their needs – even if they’d rather skip the branch visit for many tasks.

For example, let’s take the credit union onboarding process. Here are a few technologies that enhance the member experience:

• Specially designated onboarding software;
• Smart forms based on pre-set business rules that automatically determine membership eligibility;
• Digital workflows that expedite the collection of supporting documents;
• Instant ID verification based on AI; and
• Digital payment systems.

All of these technologies make member onboarding more efficient, pleasant and frictionless. Anything credit union associates can do, technology can do better. At least in these areas.

But where are agents needed? I’ve noticed that credit union members still get tremendous value from speaking to a human agent when it comes to:

• Answering questions: Even as members fill out forms, upload documents and get their ID verified 100% digitally, they usually appreciate having access to an agent who can answer questions or guide them through steps via phone
• Cross-selling: Once members have been onboarded, credit union associates are best equipped to lead a discussion about additional products based on members’ life circumstances or financial situation.
• White glove treatment: Throughout members’ lifecycle, they count on their credit union to be there for them. Whether it’s offering extraordinary rates to make a home purchase possible, access to special discounts at stores, advisory services or simply a phone call on their birthday, members appreciate a personal, warm human touch.

Digital and Human: A Symbiotic Relationship

For routine tasks, credit unions should feel very comfortable going fully digital. It will allow them to meet growing consumer expectations for efficient and speedy interactions. But when it comes to higher-order activities, such as guiding members through those digital tasks, handling delicate or extenuating circumstances or offering special services, members still treasure having a human being on the other side.

The two sides of the coin – technology on one side, human interaction on the other – are mutually supportive. When associates aren’t bogged down with paperwork, faxing, scanning and other manual grunt work, they have more time to spend on what really matters: The members they are serving.

Zviki Ben Ishay CEO Lightico New York, N.Y.