By Rhiannon Stone
Technological advancements have fundamentally altered the ways in which financial institutions provide services to consumers. Over the past decade, credit unions have done an impeccable job of integrating new technologies into the foundation of their institutions.
However, as technologies continue to be innovated at a record pace, credit unions face increased challenges of adapting their capabilities to meet members’ dynamic needs. Considering this, what tactical strategies will help your credit union navigate and prepare for such future technological innovations?
Retire Legacy Systems
To ensure your credit union is well positioned to adapt to uncertain technological changes on the horizon, leaders should begin retiring outdated legacy systems. Legacy systems simply do not have the capabilities to provide credit unions or any financial institution the ability to adapt to new innovations. As such, credit unions that fail to make the necessary system changes will be unable to reliably provide their members the technology they desire. Consequently, members may feel they have no other choice than to turn to other financial institutions that are able to satisfy their needs.
Invest For Your Future
Credit unions must begin making strategic investments in their core system and team to remain nimble and responsive. For credit unions looking to replace their outdated legacy systems, implementing an open core system will enable the future integration of new technologies that are need-to-have, not nice-to-have – particularly in the eyes of members.
Furthermore, an open architecture will give employees the chance to focus less on technology updates and more on building and nurturing member relationships.
Don’t forget, investing in employee training and development on new technologies is just as critical as investing in the technology itself. Employees require in-depth training to develop the skills necessary to utilize newly implemented technologies and empower members with better access to the information they require.
Protect Your Core Competencies
As new technology offerings emerge, credit unions will be increasingly tempted to sacrifice institutional core competencies, such as superior customer service, in the name of efficiency. Leaders must always be prepared to protect the differentiators that make credit unions truly stand apart from other financial institutions.
Therefore, when deciding whether to integrate new technologies, credit unions need to conduct a thorough analysis into the potential tradeoffs, negative effects and unintended consequences that could occur. Credit unions should aim to integrate technologies that bolster core competencies and give members the best possible customer experience.
Prospering in the Future
Overall, credit unions can continue leading the financial industry in technological innovation by not settling for the status quo and continually striving to improve their member experience. Credit union leaders must be willing to make honest assessments of their institution’s current technological capabilities and feasibility of technological integration.
Financial institutions that implement open architecture cores and train employs for new, innovative technologies will have the ability to provide the latest and greatest to consumers.
Furthermore, credit unions with a firm grasp on their core competences and a deep understanding of how technology can potentially alter their institution will be well positioned to prosper now and into the future.
Rhiannon Stone is Chief Operations Officer at EPL, Inc. For info: www.eplinc.com.