A candid conversation with Edwards Federal Credit Union

The credit union industry is undergoing a technological evolution that promises to reshape the entire industry. Digital transformation and artificial intelligence were the talk of the town, with every leader looking for ways to improve operational efficiency and enhance member value.

At a recent TQC event, I had the opportunity to speak with Jennifer Quinn, Vice President of Digital Services at Edwards Federal Credit Union, about how they have tackled and managed their digital transformation journey while incorporating Artificial intelligence.

Aris Jerahian (AJ): How do you define digital transformation at Edwards Federal Credit Union?

Jennifer Quinn (JQ): At Edwards Federal Credit Union, digital transformation is a comprehensive, ongoing effort to evolve our operations, lending, and member services by leveraging technology. We are integrating more digital tools and platforms that enable us to serve our members better and deliver greater value, efficiency, and convenience. This also includes making our staff’s jobs more manageable by reducing friction or streamlining processes through these digital transformation tools.

AJ: What are the key components of your digital strategy, and how do they align with your overall mission?

JQ: The key components of our digital strategy include a member-centric digital experience with accessible digital tools, such as mobile apps, online banking, and an AI-powered chatbot. We are continuously evaluating operational efficiencies, including automation and the use of data analytics, to streamline our processes, reduce operational costs, and increase responsiveness to members.

These components support our mission of 'people helping people' by delivering exceptional service both in our branches and through the technology we provide. We aim to make it easy for members to access their financial information whenever they need it, using the communication method they prefer—whether that's in-person, online, mobile, chat, text, or video—at a time and place that's convenient for them.

AJ: How is AI shaping your digital transformation efforts, and how does it contribute to member experience and operational efficiency?

JQ: AI is playing a significant role in our digital transformation efforts by enhancing both member experience and operational efficiency in several key ways:

24/7 support: Through AI-powered chatbots and virtual assistants, Edwards FCU provides members with round-the-clock assistance. These systems help answer questions, resolve issues, and guide members through online banking, enabling a seamless experience regardless of time or location.

Faster response times: AI helps improve response times for common inquiries, enabling faster, more efficient service. This allows members to receive the support they need without unnecessary delays, improving overall satisfaction.

Automating routine tasks: AI is automating repetitive tasks. By reducing the need for manual intervention, AI frees up staff to focus on more complex and value-added tasks, increasing operational efficiency.

Data-driven decision making: AI-powered analytics help Edwards FCU make data-driven decisions, such as predicting loan demand, managing risk, or optimizing marketing strategies. This leads to more efficient operations and better outcomes for the credit union and its members.

AJ: Do you leverage digital tools and AI to personalize the member experience?

JQ: We leverage digital tools and AI to offer personalized financial recommendations, product offerings, and support to our members. AI-driven analytics help us understand member behavior, preferences, and financial goals.

AJ: Can you share an example where digital transformation directly enhanced member satisfaction or loyalty?

JQ: We utilize text messaging to send custom messages to members, including information about upcoming payments and/or delinquent payments. We can also inform members via text about upcoming events, such as shred days and credit union events.

A great example is the text that went out for our Veterans Day Breakfast. We anticipated 25 to 50 members attending, and within minutes of sending the text message, all 50 RSVP spots filled up. We opened another 25 spots, those filled up, and then we opened yet another 25, which also filled up quickly, forcing us to cap attendance at 125 members. This was all from one text message to our members. The event led to the addition of veteran information on our website and the creation of a text group for our veteran members for future community and credit union activities events.

AJ: What are the most significant challenges you've faced in implementing digital and AI solutions?

JQ: Integrating different technologies is one of the most significant challenges we have faced while implementing digital and AI solutions. It takes time and effort to get the technology to work as expected. Technologies are constantly evolving, which means it is imperative to test new enhancements and make sure nothing is broken while incorporating them. We highly recommend using checks and balances to ensure reports and data are correct.

AJ: How do you foster cultural buy-in among employees for these innovations?

JQ: Technology only works if it is utilized. We ensure our employees understand the value of new technologies and invite questions and suggestions for additional process improvements. We also look for champions who are using the technology and seeing its value to assist other employees and bring excitement to the work environment.

AJ: If you could offer one piece of advice to other credit unions beginning their AI digital transformation journey, what would it be?

JQ: The one piece of advice I would offer to other credit unions is to make sure that the technologies you are purchasing integrate with your existing technologies. If an integration does not exist and/or the vendor states it’s on their “roadmap,” be cautious. The vendor's timelines and priorities can change, which means waiting for the technology to be available. It could take a long time for an integration to be completed, causing frustration for both parties and being costly to the credit union.

AJ: What emerging technologies (beyond AI) do you see having a significant impact on Edwards FCU or other credit unions in the next 3–5 years?

JQ: Some emerging technologies that will impact credit unions over the next 3-5 years are open banking and API integrations, blockchain and decentralized finance (DeFi), voice banking and virtual assistants, biometric authentication, and robotic process automation (RPA). There are so many new technologies that we must keep our fingers on the pulse and consider how we can continue to leverage them as part of our digital transformation journey.

AJ: What skills or roles have become most critical in your digital and AI initiatives?

JQ: We created a Digital Member Consultant role to be the point person for all our digital member experience components. They not only text, chat, call, and video with our members but also work on projects related to digital banking and AI. All branch member consultants now have text and chat follow-up with members built into their daily job duties. We will soon be rolling out our AI knowledge assistant, which will help all our member-facing staff interact more efficiently with our members.