Technology for the financial sector is innovating at a feverish pace, changing how credit unions operate and serve their members. It’s creating opportunities for them to transform their offerings while also deepening relationships with existing members and attracting new ones.
A recent report from Deloitte confirms the need for greater personalization to forge deeper member relationships, while striving to adopt advanced modeling tools to generate predictive insights.
This dovetails with The 2023 Digital Banking Performance Metrics Report by Cornerstone Advisors, which stated: “It’s no accident or coincidence that the highest performing financial institutions are the most aggressively investing in emerging technologies.”
Financial institutions need to make investments in technology to stay competitive. As 2024 approaches and budget dollars are being allocated, what are the best technologies for credit unions to focus on?
Technology that delivers speed
An oft-repeated statistic from the Jim Marous’s digital banking report : If it takes prospective account holders more than five minutes to open an account digitally, they will likely abandon the process.
Taking that a bit further, the ability to move money into that account should be immediate, and transactions like bill pay and peer-to-peer payments should also be low friction.
2024 budgeting should include: Partnering with third-party vendors with expertise in deploying personal financial management technologies.
Artificial intelligence (AI) powered solutions
For financial institutions, it’s about using AI technology to quickly and accurately analyze data, perform repetitive tasks and otherwise free up humans for other activities.
2024 budgeting should include: Marketing automation, AI predictive modeling for audience curation, personal financial management tools, integrated natural chat support and other functions to create efficiencies.
Cybersecurity and fraud protections
Cyber hackers are growing in sophistication with every passing day. As your members’ concerns about security and fraud also increase, it’s vital they know you are a vault of security.
2024 budgeting should include: Security for electronic payments, including automated clearing house (ACH), real-time payments and peer-to-peer. The right digital banking platform and third-party vendors can provide layers of security for business and retail members, alerting them immediately to suspicious activity and helping protect them from account takeover, unauthorized transactions and fraudulent checks.
Bottom line, the technologies may be new and innovative, but the end goal for credit unions is the same as it has always been: Engaging current members, enticing new ones and creating loyalty through the kind of member service credit unions are known for. It’s about using cutting-edge technology to get back to basics.
Learn more about budgeting and strategies for credit unions, download Alkami’s 2024 Strategy & Budgeting Playbook.