Credit Unions Embracing Digital Transformation

Banking CIO Outlook | Wednesday, July 17, 2019

Digitalization is transforming credit union business strategies adopting innovative approaches.

FREMONT, CA: Credit unions are transforming digitally to remain relevant and succeed in today's evolving environment. The more advanced credit unions have added various digital offerings to enhance the physical one. Credit unions are confronting a challenging competition from fintech startups that are being very inventive in the way they interact with customers and the digital experiences they offer. To transform businesses successfully and retrofit them to modern approaches, credit unions follow tech-driven tactics.

• Transformation Strategy

Credit unions are not aloof to business transformation. The transformation is essential for survival but also is fundamentally risky; the digital transformation is no distinct. Digital transformations influence every aspect of the organization systems, methods, and people. These resources need to be introduced to these digital changes in ways that bring positive momentum and additional opportunities.

• Operational Excellence

Credit unions employ numerous systems to serve various members and onboard other financial services. Most of these are legacy systems that are not supervised by any application. It takes a lot of time to input and retrieves information out. Executing an internal interconnected data integration ecosystem that serves all applications facilitates the credit unions to store data in a centralized platform. It automates many of its processes, shortens timelines, reduces errors, and increases efficiencies.

• Customer 360

Credit unions still have conflicting views of the same member and find it challenging to gain a holistic understanding of all its interactions and transactions with their business. These are challenges that connecting platforms and centralizing data don't solve. To solve these problems, companies are mastering the data to create a 360-degree view of the customer. Learning the data and creating a 360-degree view of the customer is the most critical step to begin tracking and understanding the business's customers.

Digital technologies are modifying the business aspect for credit unions. The digital technologies used within the credit union are still in their infancy, especially the ones that serve smaller rural communities. Credit unions recommence to extend their outreach from brick and mortar physical branches to online banking. They must future-proof their business in a way that it can feasibly compete in the marketplace. Nimbler businesses are tailoring offerings to modern customer needs.

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