By Ted Bilke
The coming year is sure to be marked with a wider embrace of all things digital. Credit unions are answering the call to offer simple, convenient member services as a point of differentiation. This means executing on more comprehensive digital change in 2018 and implementing tested, proven technologies to deliver a personal banking experience.
Specifically, this exciting movement will be evident in targeted technology innovations and changes in credit unions’ culture, including:
More Use of AI
More credit unions will advance artificial intelligence from the consideration and planning stage to deployment. Engaging with members in a more impactful way may lead this effort as a revenue driver, with fraud prevention being the major driver from a cost savings perspective. AI-powered voice enabled virtual assistants (bots) will become more prevalent in automating member service-related functions as well, a response to the rise of conversational commerce and the more personal shift to digital banking.
Greater Use of Distributed Ledger Tech
Also notable, collaboration within various consortia and networks will drive more use cases for distributed ledger technology than we’ve ever seen via continued experimentation of permissioned blockchain proofs of concept.
As the industry curves in this direction, credit unions will begin to embrace more fintech partnerships to speed new product development and differentiate digital services, especially within small business lending and AI technologies. They will restructure internal process and organizational design to formalize these cultures of innovation and intelligence. Specialty positions such as “Chief Innovation Officers” and data scientists will emerge as the norm in an effort to become more agile and competitive.
More Outsourcing
Another big shift will be the justification to outsource core functions, supported by the call to dedicate resources to focus on emerging critical trends: data management, business analytics, faster payments, business growth via digital channels, commercial lending and deposit growth, and reducing fraud.
An effective digital transformation begins with an understanding of member behavior and preferences. With 2018, we can expect that credit unions will launch elevated versions of digital banking to offer more complete, integrated solutions that extend the full branch experience to members’ phones. This will coincide with real progress around branch transformation – defined as an evolving blend of digital and branch banking – to provide the launch pad for the improved ROI and efficiency ratios that credit unions seek.
Cheers to the New Year, and to the evolution it will bring!
Ted Bilke is president of Symitar.