LAS VEGAS—Are credit unions equipped to deliver an Amazon- or Netflix-esque experience to members? They’re going to have to be if they want to compete in the modern, digital world.
That was the message from Alison Fleming and Robert Blair, respectively sales specialist for CUNA Mutual Group’s TruStage insurance program and media director at CUNA Mutual. The pair spoke Thursday at the CUNA Marketing and Business Development Council’s annual meeting in Las Vegas.
Netflix, Amazon and many others rely on artificial intelligence machine learning and data analytics to predict what users want, and Fleming emphasized that harnessing those technologies will be key to growth for credit unions and other financial institutions.
“These new technologies are having a tremendous impact on marketing,” she said. “Digital is happening faster than ever before. Just seven years ago, virtual tellers were the huge new development. Today, 50 percent of millennials would drop your credit union like a hot potato for a cool, new app.”
With increasing competition from fintech companies threatening traditional FIs’ revenue sources, Fleming cited one statistic that as many as 80 percent of heritage financial services firms could be out of business or commoditized by 2030.
“It is all about personalization,” she said. “Consumers will stay with financial institutions that do personalization well. Digital technology is the fourth industrial revolution.”
Automation is already here
“Automation is no longer the future, it is here,” Blair said, pointing to a prediction that by 2020, 85 percent of customer interactions will be managed without a human, and 50 percent of searches will be conducted by voice. “Artificial intelligence intersects with all phases of the customer journey. About 50 percent of consumers own an Echo, Google Home or HomePod. They use it for search, shopping and even managing their finances."
“This is a huge
CUs can use chatbot assistants to service members’ common needs, such as activating credit cards, Blair said. “You can save money by automating processes. Voice interfaces are becoming a familiar way for consumers to interface with brands.”
Financial institutions have been talking about the concepts of “cross-channel” and “omnichannel” for several years now, but according to Blair they are just now realizing how to fully connect with consumers. He said CUs need to plan for an integrated member journey across all channels.
“Data-driven insights are fueling the design of customer experience,” he said. “New technologies are enabling brands to give customers what they want.”
Companies have access to more data than ever before, which Blair said highlights the importance of credit unions making sense of their member data.
“Devices are generating so much information. It is not about data, it is about using the right data correctly,” he advised. “The challenge is to take advantage of an excess of data. Credit unions need to create informed campaigns, build relevant financial products and optimize content.”
Blair counseled CUs to focus on action-based response intelligence, while working toward improved analytics and automation. He said some practical uses include using machine learning to recognize fraud threats in real time. Biometric security keeps data safe, he added, noting KFC restaurants in China use facial recognition for payment.
“Companies that employ effective analytics programs can increase productivity, reduce losses and improve products and services,” he said.
