PEACHTREE CORNERS, Ga.–Creating an omni-channel experience for members is at the top of credit unions’ to-do list in 2018–or should be–contends one expert, who insists those efforts must create “true” universal service experiences.
“Technology to simply get some mobile services in place are almost universal, but we've seen that a true omni-channel experience needs to be much more than that—and the best technologies can do much more for any financial institution,” said Jason Schwabline, SVP, product management and strategy for Alogent.
On one level, the omni-channel focus for 2018 looks like a continuation of 2017, said Schwabline.
“But what we see is a significant move from the analysis and planning stage to strategic implementation,” he said. “In our experience, it takes a combination of technology adoption, systems integration, and operational changes to fully execute a true omni-channel strategy.”
Schwabline termed omni-channel service “evolutionary.”
Sure Path To Success
“Digital platform progression is its key underlying element,” he told CUToday.info. “One of the surest pathways to success is quick integrations, which leverage the more flexible APIs now becoming available, allowing institutions to build a cohesive, seamless, singular platform. Unsurprisingly, the biggest driver toward this has been building the digital banking relationship with customers.”
What will drive the change this year is the simultaneous plateauing of mobile adoption with a decline in branch traffic, according to Schwabline.
“Now the focus can shift from simply building out mobile channels, to rebalancing mobile, other self-services, full-services, and everything in between,” he said. “Digital banking is becoming the hub around which both operations and technologies are being arrayed.”
Along with their rapidly evolving mobile self-service offerings, institutions must continue working on preventing fraud.
“We also see credit unions ramping up their pursuit of more commercial and business relationships as key growth strategies in 2018,” Schwabline said. “Credit unions are often challenged to build specific products and services for these members, and at the same time make sure their technology and infrastructure can support their specific demands.
Strike Proper Balance
Schwabline said a big question CUs must answer is whether they can find out how to coexist, strike the right balance, or leverage growth from fintechs.
“Is that a good thing? There are a lot of good points on both sides,” he said. “We heard a great debate about fintechs vs. banks as innovators at Money 20/20. Much of it centered around whether fintechs or banks would prevail. The likely answer is both. And many companies like Alogent, which fall within the definition of "financial technology," serve rather than compete with banks and credit unions.”
Schwabline said Alogent is developing more agile API-driven technologies and platforms that allow institutions' legacy systems to communicate with newer fintech solutions.
“In addition, we take a consultative, advisory approach, helping institutions surmount their operational barriers. For example, among departments or between channels and their technologies,” he said. “It’s not about the technology, it’s about how the technology fits in the institution and how it's used.”