Industry shifts are cyclical, and while these shifts do happen regularly, the fintech wave is something we haven’t seen before. What we saw with Check 21, we’re now seeing with the faster payments movement. That said, there’s more reason today for traditional financial institutions to digitize than solely the fear of becoming the new Blockbuster. Credit unions must have the ability to support innovation and rapid change for the members they’ve built relationships with over the years—and in some cases, decades.
There are many reasons smaller FIs are sometimes hesitant to implement new technology. This article will delve into why that is, considerations for a longer-term strategy in an increasingly digital world and why this doesn’t have to be hard for smaller organizations—painting the picture of how the banking industry needs to shift to support a modernized future.
Weighing New Tech
It’s not surprising that small FIs in a previously analog industry are behind on moving to paperless technologies, but there is a major reason these FIs, including credit unions, are hesitant to implement new tech: Like in any organization, key stakeholders can be too focused on immediate ROI. It’s time to flip the narrative, consider the long-term ROI and double down on your motivation for digital transformation. This requires credit unions to look at who their account holders are, what they need and ultimately what they are trying to achieve. What are the top expectations for users, particularly those expectations that influence their FI of choice? How fast is fast when it comes to faster payments? Millennials and Gen Z (your current and future members) want everything to happen now. They want faster (if not immediate) payments and user-friendly technology to get it done.
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