CU Challenges Give CIOs the Opportunity to Emerge as Valued Internal Partners

The role of credit union chief information officers (CIOs) undoubtedly continues to evolve, especially in today’s digital age. With that evolution comes various challenges (and opportunities) to position IT departments as revenue-generating partners for credit unions.

So often in this industry, CIOs can end up getting closed off from other departments due to the daily demands of the role. CIOs can often be perceived as less innovative or less open to new ideas since other factors, such as information security risks, come into consideration. A lack of collaboration or innovation can harm a reputation, so to help overcome this perception, CIOs should feel empowered to “run toward” their internal customers and work collaboratively to find solutions for complex business challenges.

Maximizing Data

One of the biggest challenges for CIOs is maximizing their credit union’s data for additional revenue opportunities. Unfortunately, credit unions often fall into the habit of not regularly examining their member data, which means valuable insights that could improve the member experience and drive revenue could be overlooked.

Taking a proactive approach to examining the member data presents a massive opportunity for CIOs to position themselves at the table as valued partners, which can benefit nearly every part of the organization.

The most integral step in maximizing the data is to partner with the person or department responsible for it, allowing CIOs to leverage it and turn it into actionable steps a credit union can take to better interact with its members. For example, leveraging data insights from the CIO can help with a credit union’s marketing efforts and its ability to create more effective and targeted campaigns.

Long gone are the days when 100% of banking was done in person. Brick-and-mortar branches are quickly being augmented, and sometimes replaced, with digital applications – meaning every digital interaction should be seen as a conversation. CIOs should harness the ability to study these interactions and help their organizations make necessary adjustments to improve member service regularly.

While CIOs should challenge themselves to maximize data for their institutions, they should also be good stewards and handle it sensibly and responsibly, ensuring it is secure.

Staying Compliant

One of credit unions’ most immense and sometimes most consuming challenges is remaining compliant with the constantly changing regulatory rules and regulations. When a credit union is not in compliance, it impacts everyone within the organization and beyond.

With the recent collapse of several banks across the country, staying in compliance has become increasingly important, especially when garnering consumer trust. Undoubtedly, the industry will see tighter rules and regulations in the future.

CIOs can do a few key things to keep their credit unions ahead of the 8-ball and avoid the last-minute scrambling before an audit.

The first is to stay current with timely NCUA, Federal Reserve, FFIEC and CFPB updates. It’s also a best practice to appoint an individual or department responsible for staying on top of the regulatory changes. For example, at Members Choice Credit Union, the COO and her department oversee this task and provide the IT department with regular briefings.

As the CIO learns about upcoming changes, creating a visual roadmap is an effective tool to help the organization prepare for what is ahead in the next 12, 24 or 36 months. This roadmap details what needs to be done and when so that all impacted parties are on the same page. In addition, the roadmap should be shared with the IT department and internal business partners, so they know what IT is changing and adjust accordingly.

It’s also a good rule for CIOs to conduct internal audits regularly. Doing so can help uncover issues that have the potential to grow into more significant problems right before an official audit.

A Final Word

The challenges inherent in the position of a credit union CIO present an array of opportunities for them to emerge as valued and insightful team members.

It is critical to shift the mindset beyond the traditional role of a CIO. In every challenge lies an opportunity to position IT as a valued partner. Instead of looking at challenges as hurdles, consider them a chance to improve the member experience, become a highly sought-after resource and increase the credit union’s overall bottom line.

Ralph Owens is the Chief Information Officer for the $753 million, Houston, Texas-based Members Choice Credit Union.