Embracing tech is key to credit union success

Consumers are no strangers to technology. They shop online, tap to pay and control their thermostats with their mobile devices. Banking is just one more facet to consumers’ digital lifestyles.

To meet, and even surpass, consumers’ increasingly greater demand for digital solutions, credit unions must thoroughly understand the value of technology and its uses. Credit unions should focus on how they can leverage technology to supplement their existing expertise. In fact, technology may just be the edge credit unions need to turn good consumer experiences into great ones.

When planning their technology strategies, credit unions should keep the following six things in mind:

• Recognize your true north. Your strategic aspiration and value proposition should be central to any new plans. Look at technology as a means to solve complex problems aligned with your core competencies.
• Collaborate to innovate. Start by engaging your technology team in strategy-planning sessions. Then explore resources beyond your own organization. Participating in events and discussion groups, like Filene’s REACH Innovation Group, can spark new ideas.
• Use tech to generate better analytics. Chances are, your credit union is sitting on a gold mine of data. Couple that data with the technology to analyze it and you’ll have the capability to drive the integrated, customized experience consumers want.
• Work wonders with immersive technologies. Technologies such as robotics, augmented reality and geofencing help create “chemical memories” with consumers, making them more apt to return to your credit union.
• Anticipate consumers’ needs. Optimal consumer service revolves around the ability to provide products and services consumers want or need before they realize they want or need them.
• Team up with the right strategic partners. No financial institution alone can keep up with every trend or change in technology. Determine your areas of expertise, what you still want to accomplish and look for partners who can help you get there.

As an added incentive for credit unions to offer a variety of digital services, recent research correlates tech capabilities with asset growth. A study by MagnifyMoney found financial institutions with the highest digital adoption scores grew their assets much faster (16 times faster, in fact) than those less likely to adopt new digital technologies.

To truly make the most of technology, credit unions should avoid the temptation to offer the latest “cool” apps or widgets. They should instead focus on their strategic aspirations and then invest in the technologies that will help them reach the right consumers.