While forecasts point to an economic slowdown later this year, credit unions remain resolute in providing their members the products and services they desire as well as investing further in technologies that will keep members’ data safe.
Credit union leaders must chart their institution’s own course to meet their members’ needs; however, leaders should be cognizant at all times of patterns that could emerge within the financial services industry. These trends can help shape their goals for the year or even expose weaknesses within their institutions. Either way, leaders have to grasp the industry direction and how their credit union fits within the landscape.
So, what potential trends should credit union leaders be aware of?
First, modernizing legacy systems is something to consider. As consumer preferences continue to perpetually evolve, financial institutions must have systems in place that support agile technological change.
However, many institutions are restricted with legacy systems that hinder their organizations’ ability to adapt to technological trends. Because legacy systems weren’t designed with a consideration for future technologies, they do not have the necessary flexibility to integrate with the latest innovations.
Consequently, some financial institutions are severely limited in their capacity to fulfill their customers’ daily needs. Therefore, institutions will continue to modernize and move toward more open, holistic, flexible, modular core banking systems to provide the latest and greatest technology to meet their customers’ evolving needs.
The promulgating of artificial intelligence is likely to continue. Over the past decade, financial institutions have increasingly integrated AI into their services and products. Furthermore, AI will be used to supplement existing areas, such as cybersecurity and customer service. These efforts will not only enhance various systems and processes, but they will also help to lower overall operating costs and allow for more strategic investments in other institutional initiatives.
As mobile banking continues permeating throughout the industry, financial institutions will implement additional security measures to better safeguard members’ personal data, while providing ease of use as well as differentiate their organizational capabilities.
Moreover, increased security measures, such as blockchain and biometric authentication, will be utilized to reassure customers who are skeptical of the security parameters of mobile banking. In addition to adding security, financial institutions should implement education modules targeting skeptical member segments to further substantiate the safety of mobile banking. These members need to feel confident that their data is safe and secure.
Finally, financial institutions will invest in additional trainings to educate employees about evolving technological changes as well as demonstrate how these changes can improve their members’ experience. These trainings will not only help credit union employees’ professional development, but will also allow the employees to have better member interactions when discussing any technological issues they may be having in interacting with their credit union.
Overall, credit unions are well-positioned to seamlessly implement the above strategies. Even facing a potential economic slowdown, credit union leaders must always be striving to improve their internal processes as well as their service and product offerings. Comparing your credit union’s status against yearly industry trends can be the first step in making substantive progress in consistently satisfying members’ needs.
