AI Trends to Watch in 2022

Artificial intelligence continues to develop rapidly in both its capabilities and applications across industry sectors. For credit union leaders, it’s becoming increasingly crucial to understand how AI can be applied as a powerful tool to connect with and support your members. While 2021 gave us a peek into what AI can offer the credit union sector, 2022 may be the year we start to see broader adoption – and bigger payoffs.

New Technology to Better Serve Members

Technology innovation continues to reshape consumer and small business experiences and expectations. As new financial offerings like Buy Now, Pay Later (BNPL) and digital/cryptocurrencies become more popular and mainstream, it is important that credit union leaders understand these types of changing market demands.

Data from Cornerstone Advisors showed that 58% of consumers are still willing to do business with credit unions over bigger banks in order to gain a more personalized experience. Yet by the end of 2022, the same research found that 15% of credit unions still will not have launched a digital transformation strategy. Although personalization is still a winning approach, credit unions cannot sell on the strengths of their culture alone. Those that get ahead will be the ones that implement advanced digital and AI capabilities into their business models.

For credit union leaders to decide if new products or solutions may be useful to their current and prospective members, they must keep pace with what is trending in the market and what consumers are seeking. Whether it’s video chats for virtual yet still personal interaction, chat bots for quick access to solutions or resources, or even posting financial tips or institution updates on social media, the landscape of consumer expectations never stops evolving.

Personalized Interactions to Maintain Retention

While member satisfaction and retention are top priorities for credit union leaders, findings from the American Consumer Satisfaction Index revealed that credit unions earned a 76 out of 100, down a point from 2020. This was still a strong showing – but there is still a significant gap to fill.

Fostering connections with new members is a first step in developing long-term relationships for credit union leaders. AI platforms can play a key role in building meaningful touch points that can help relationships take root over time.

Purchase history, product use, mobile app usage – consumers are now associated with an abundance of data that can no longer be effectively understood or leveraged without advanced technology and software. The critical question every credit union leader must ask is, how can their employees tap into that data to create (and scale) personalized moments of connection that build relationships over time?

By taking advantage of the capabilities of AI and predictive analytics, common behaviors and trends in a member’s finances can be flagged at the appropriate time. This will help employees better meet the needs and wants of members in the moments that matter most. Whether they are looking to buy a house, saving for a new car or just putting money aside for something special, AI can help employees better connect with members on important financial decisions and suggest products that best fit their short- and long-term goals. The data provided by predictive analytics ultimately helps leaders make transformative decisions for their credit union and set their employees up for success.

Trust Between a Credit Union and Its Members

Consumers must be confident that they can trust their financial institution with their personal data. And trust is even more vital when it comes to the relationship between credit unions and their members.

Over time, AI platforms will play a key role in helping build and maintain that trust – demonstrating deep understanding of a customer’s needs and circumstances while bringing the right level of personalization to every interaction. But like self-driving cars, this technology is still evolving.

Every day, credit unions and other financial institutions take in scores of new data points on members that must be safeguarded even as they are leveraged for business purposes. Some consumers remain wary of these platforms and how their data is being used. As AI evolves and gets ever-smarter, personal data will be utilized to predict patterns and insights of greater value and relevance to credit union members.

As that value and relevance grows, trust will follow. So, 2022 may be the year when a timely AI recommendation could be another step in building trust between a credit union and its members.

2022 Predictions

AI is still early in its evolution in the banking industry. Beyond being used to nurture existing relationships and maintain membership, 2022 is likely to be the year we see real innovation around AI’s role in financial trust and wellness, savings, wealth creation and debt ratios.

Watching trends in such areas as crypto, self-directed investments and BNPL will keep credit union leaders tuned into changing market demands – and will help build the business case for adopting more advanced digital capabilities like AI.

While AI may just be getting started, the data to make these advances possible is already in credit union systems. Through smarter tools and data enrichment, credit unions can better arm their employees, serve and retain members, attract new customers and do what they have always done best – build meaningful relationships that profit everyone over time.

Rob Heiser CEO and Co-founder Segmint Cuyahoga Falls, Ohio