BROOKFIELD, Wis.-Credit unions appear ready to step up again with investment in technology to meet strategic goals-including meeting a projecting increase in self-service.
Fiserv has discerned that trend as the result of increased interest in the company's data processing solutions, shared Sara Brooks, SVP-strategy offerings development and marketing. "I think credit unions have been in an investment holding pattern for the last 18 months for all the obvious economic reasons. We predict we will see a lot of new investment decisions in the back half of the year."
Brooks said CU technology investments will not be made haphazardly, but around sound strategic plans that require improved IT for the CU to grow. Fiserv believes it is ahead of credit unions' need to meet future challenges, having already invested a great deal in R&D around its core processing platforms, including the release of Acumen.
A significant R&D focus for Fiserv has been the "resurgence" in self-service, with mobile taking up a big portion of its efforts, along with source capture optimization and online account origination, Brooks said. "The reason why we are seeing a resurgence in self-service in the CU space, really getting to a more full e-commerce and e-delivery strategy, is because not only does this drive member convenience but also efficiency-a double bonus in this economic environment."
Remote deposit capture, as well, is a growing need for small business, noted Brooks. "Small businesses struggle with finding time to get deposits to the financial institution. Time is precious to them, as is cash flow. I see many more of our credit union clients focused on a small business commercial strategy. So we are doing lot of R&D work in that area as well."
Another area of CU business, demand deposit accounts, will garner a great deal of attention in the coming months. Brooks, who noted that Fiserv is providing credit unions with solutions around Reg E, suggested that the financial business model for demand deposit accounts is changing. "In the back half of the year as we shake out what the impact of Reg E will be to fee income, credit unions have to start thinking about where the business model needs to go next. Credit unions have to begin thinking about very different ways to package, promote, and price checking accounts. It may lead to a transformation in the whole structure of how deposits work from a business model perspective."
The pace of the change will be pushed by the effects of Reg E, the proposed new interchange rules, and compliance demands, but also by consumer preference, insisted Brooks. "I think credit unions have an opportunity to get in front of this instead of following."
