MONETT, Mo.–A new report offers insights into how credit unions are leveraging technology and working to keep member service personal.
Jack Henry & Associates has released the findings from its inaugural Technology Capabilities Roadmap Assessment, which includes data from 119 credit unions of all sizes.
Among the highlights of the new report:
- While fintechs are introducing their own payment tools such as debit cards and mobile wallets, 97% of respondents have already deployed debit – same for mobile bill payment – and 71% are already developing or have mobile wallets live. At the same time, about two-thirds of respondents have deployed P2P, with these launches expected to move more quickly as networks and processors work together to onboard more credit unions, the company said.
- 38% of respondents are already developing or have a live digital-only brand, targeting a niche consumer audience. Interestingly, the percentage of credit unions doing this is highest among institutions with less than $500 million in assets.
- Credit unions are creating member experiences that are real time, multitouch and conversational. While only 23% of respondents have deployed virtual tellers to date, 76% expect to deploy them by the end of 2020. More than one-third of respondents have also released personalized live chat capabilities.
- Modern technologies require a history of data to be most effective, prompting credit unions to take advantage of data enhancements–such as artificial intelligence (AI) and its subsets, machine learning and predictive analysis – to personalize offers, solve payment fraud, and much more. 89% of respondents plan to implement machine learning by 2022. More than half of respondents are currently researching and planning for predictive analytics.
Responding to Market Pressures
“Credit unions’ ongoing member growth confirms that they are appropriately responding to market pressures with smart technology investments that emphasize open, digital strategies with an appropriate balance of personalization and self-service,” said Ted Bilke, vice president of Jack Henry and president of Symitar.
The company said the Jack Henry Technology Capabilities Roadmap Assessment provides the information and analyses to help financial institutions develop their business strategies and technology roadmaps so they are more future-ready. The research survey of credit unions focused on industry trends in five key strategic areas – Business Intelligence, Digital, Fraud, Risk and Compliance, Payments and Service and Support.