by: Peter Keers
McKinsey & Company released a fascinating report in November 2014 titled The Bank of the Future.
The observations of author Somesh Khanna are very relevant to the credit union of the future with a few unique twists.
Observation 1: Branches will still be important but not the same
Khanna predicts branches will be fewer but will serve as “destinations for complex advice and problem resolution.” Credit unions may find that while necessarily fewer, the remaining brick and mortar venues will serve as gathering places to build member loyalty and strengthen a unique sense cooperative-oriented community.
Observation 2: Digital channels provide an opportunity to personalize the member experience
Credit unions capture an immense amount of information in the form of daily transactions, the artifacts of the operational environment. Yet, when aggregated, the individual transactions become the basis for transforming the way credit unions do business. Personalization of member interactions becomes possible when transactional data is aggregated and used to tailor individualized offerings and predict member behavior.
Aggregation is typically accomplished via a data integration effort, most often a data warehouse. Implementing such a solution is a daunting task for most credit unions. Fortunately, innovative vendors are now offering affordable solutions that allow credit unions of all sizes to make personalization a reality.
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