By Ray Birch
ST. PETERSBURG, Fla.—Competition and consumer expectations around digital delivery are ramping up quickly, making it necessary for credit unions to play bigger in the digital arena, says Lumin Digital.
As CUToday.info reported, PSCU recently formed Lumin Digital to be a “leading-edge platform to redefine digital banking for credit unions.”
The cloud-based digital banking platform has been built using market-leading technology, and will provide members of PSCU-owner credit unions with a tightly integrated and customized experience that rivals the offerings available from the big banks, PSCU said.
“The big part of what we are doing is bringing new technology to credit unions to help them better compete with banks and fintechs in the digital space,” said Lumin Digital President Jeff Chambers.
And there’s no time to delay, emphasized Chambers.
“In the next couple of years we will see a seamless integration of all delivery channels, meaning that is what consumers will experience,” said Chambers. “A highly integrated experience is coming. Longer term, we are moving toward higher levels of artificial intelligence and predictive analytics. The personal experience you get in the branch will be emulated via the digital channels—members will feel like they are understood and catered to just as if they were in a branch. That is where we are going.”
'Clunky Experience'
Chambers said that looking the current state of digital delivery channels among credit unions can be a clunky experience for members to manage through and there is no connection established between the member and the credit union.
“You log into a credit union’s home banking and mobile solutions, maybe you want to do something with your credit card, sometimes you have to use a different app…,” said Chambers, who turned his attention to other delivery channels. “When you call into the call center or walk into the branch there is not a lot of integration between delivery channels—not a lot of integration between mobile, online, call center and the branch.”
Chambers compared that experience to what many consumers get from Starbucks.
“If you use the Starbucks app, as soon as you enter the store Starbucks knows who you are,” said Chambers. “We are moving toward a convergence of all the delivery channels and soon enough there will be parity across all of these channels, and all channels will be aware of each other.”
What is raising the stakes on digital delivery is a big shift in consumer preference, explained Chambers. He said that new research indicates 61% of consumers prefer a better digital experience from their financial institution over the most competitive rates.
“You have this shift in consumer preference at a time when billions of dollars are flowing into fintech startups and the major banks are investing hundreds of millions of dollars into transformation of their digital delivery channels,” said Chambers. “You can see what credit unions are up against with these kinds of investments being made.”
Big Bank Investments
The huge investments by the banks are already paying off, according to Chambers, who said that numerous studies indicate consumers rate the big banks highly for digital delivery.
Chambers acknowledged that smaller credit unions face the biggest challenge in assembling the resources to deliver what more consumers are expecting from digital, and can benefit from working with a partner in this area.
“We are going to help credit unions of all sizes,” said Chambers. “The majority of credit unions don’t have the capital or resources—or the prerogative—to be software development companies. That is not the business they are in. Lumin Digital is looking to bring the technology and vision to this space so credit unions can offer members a compelling digital experience that rivals the big banks and fintechs, helping them protect their membership base and grow it.”
Chambers explained that a big part of keeping consumers happy with a digital experience is making updates to an app that are seamless to the consumer, and that new functionality consumers do see is simple and easy to understand and use.
“When you look at many credit unions today, they deploy a digital banking app and then don’t want to touch it afterward because it’s not simple to update and the credit union does not want to be disruptive to members,” he said. “We will help credit unions keep their digital delivery dynamic, evolving and not disruptive to members...We are going to help credit unions service their members through the digital channel just as if members were walking into a branch.”