Why Credit Unions Should Focus on Staffing, Fintech & ITMs in 2023

The new year is off to a busy start, and credit unions have a long to-do list. A series of interest rate hikes, regulatory oversight, and increasing personnel and operational costs are top of mind for most institutions. When planning for the rest of 2023 and beyond, credit unions must take a hard look at third-party contracts, while keeping other key considerations in mind.

Staffing issues will continue, and artificial intelligence could help address this ongoing concern. Frontline workers, especially contact center reps and tellers, feel the pain of short staffing. Employees are more likely to embrace the relief that AI can provide as it becomes clear the tech will not lead to massive layoffs.

In addition, when wage pressure is present, financial institutions need to have an elaborate strategy for luring and keeping top producers. For effective staff retention, they must highlight business culture and employee engagement initiatives. To have a contented, happy staff, credit unions must invest in professional development.

Beyond AI, credit unions should become more knowledgeable about the fintech market, including ways to reinvent traditional services and explore areas such as digital assets and the metaverse. Credit unions should set aside time and money, even if they aren’t making immediate investments, to examine the many options that are available, meet with suppliers and determine where they stand with technology.

The use of digital assets will increase. More regulation is coming, which will clarify the rules of the road. Trusted financial institutions like credit unions may benefit from the recent collapse of well-known crypto businesses, but they must do their homework before investing. Keep in mind that modern infrastructure and technologies are more important than changing monetary values. Even if they don’t currently have any intention of providing services related to digital assets, credit unions should budget for due diligence now. Digital mapping should be considered before starting down a fintech-oriented path.

Another tech enhancement worth considering are interactive teller machines (ITMs). While many institutions are consolidating and eliminating branches, they still have to manage intricate, high-value transactions and cater to the demands of particular consumer categories. ITMs are an ideal method to close this gap.

The average ITM can cost $55,000 to $80,000, excluding one-time infrastructure costs of $250,000 to $500,000, according to the American Bankers Association. However, if credit unions correctly inform and promote ITMs to members, they may be able to recoup their costs many times over.

The most successful credit unions will concentrate on strategies and investments that will help them attract and retain members. AI, fintech and ITMs are three promising fields; therefore, organizations considering these investments must be aware of the long-term ROI they offer to make sure the technology can effectively support their organization’s long-term vision and growth objectives.

Loretta Weller-Mowers is Digital Strategist for credit union consulting firm Sievewright & Associates, an SRM company.