4 Trends for Credit Unions to Watch in 2022

The combination of rapidly shifting member preferences, an increasingly crowded competitive landscape and the disruption of emerging technologies have made strategic use of digitization and automation more urgent than ever before. Credit unions are being challenged to accomplish more with less resources, accounting for factors such as evolving regulatory requirements, more robust disaster planning and widespread staffing shortages stemming from the Great Resignation.

To remain relevant and succeed in 2022 and beyond, credit unions must closely evaluate their technology strategies and redefine the member experience. There are several trends to watch as we head into the year.

1. More will embrace a digital-first mentality, resulting in merged channels and more connected experiences. Digital has been solidified as the primary preferred touchpoint for a wide majority, and digital-first banking will continue to be a main priority next year. However, digital-first doesn’t mean digital-only, but rather digital everywhere, including integration into physical touchpoints.

Branch strategies are being reimagined, with many optimizing their footprints and transitioning to more digitally focused, retail models, complete with more advanced self-service technologies such as interactive teller machines (ITMs). Such a shift is allowing employees to move away from the role of everyday activity managers and more closely resemble relationship-centric advisors and salespeople.

As the physical and digital channels continue to merge, credit unions will look toward more simplified, flexible architecture to power and unify what were once separate experiences, resulting in more connected member journeys. This will allow credit unions to increase efficiencies, innovate more quickly and deliver more consistent member experiences across interactions of all types, from digital banking to ITMs and call centers.

2. Cryptocurrency strategies will be solidified. Members of all ages and demographics are showing interest in cryptocurrency; what was once a niche market has become mainstream. Next year, it must be determined when and how digital currencies will fit into credit unions’ service offerings moving forward.

Credit unions have the opportunity to be leaders in framing the vision of how digital currencies will work across all touchpoints. Use cases such as buy, sell, hold; cross-border remittance and payments will continue to become more common next year. Those that establish their strategies and expand member access to frictionless digital currency capabilities will be strongly positioned to compete with emerging threats, cement member loyalty and create new revenue opportunities.

3. Financial wellness initiatives will emerge as a significant use case of more advanced personalization capabilities. As the competitive landscape becomes even more crowded, with fintechs, neobanks and bigtechs all vying for market share, the ability to leverage data to personalize experiences has never been so critical. In 2022, more credit unions will see these efforts pay off. Personalization will mature, enabling the proactive delivery of more tailored financial advice and more narrowly targeted product and service recommendations for members. This focus will prove especially important this year as many look to reestablish and reinvigorate their financial health in the pandemic’s wake.

4. The as-a-service model will gain traction. As credit unions are faced with competing resources, budgets and priorities, more will continue to turn to the true as-a-service model, especially for areas that may not be as strategic to the institution. This doesn’t simply mean managed IT services, but rather the reliance on a trusted partner to run areas such as compliance, business processes and asset ownership. This approach boosts efficiencies and helps ensure successful outcomes while freeing up resources for more member-facing and strategic initiatives.

Implementing the right technology and member service strategy that accounts for these trends will be critical for credit unions this year as they are challenged to optimize margins while continuing to innovate. Those that prioritize delivering digital-first, connected experiences to members will be able to retain and grow market share while establishing a competitive advantage.

Douglas Brown is President, Digital Banking for NCR Corporation and is based in Atlanta.