Note: This article was part of a larger series published online in Credit Union Times. Xamin was a contributor to the publication.
Capturing and leveraging member data to guide decisions and improve marketing campaigns will become an even greater priority for credit unions.
In this special online-only series, CU Times interviewed fintech and credit union professionals to discuss the changes seen in the fintech world during the past decade, as well asking them to take a look ahead into the next ten years.
Rick Gonzalez, founder/CEO, RoamHR
One of the biggest developments over the past decade is the rise of the freelance – or “Gig” – economy supported by the emergence of mobile technology and innovative apps like ride-sharing, which provide workers with greater levels of flexibility. The gig economy is one of the fastest growing segments of our overall workforce, with reported numbers as high as 54 million nationally. For most credit unions, more than a third of their members are now participants in the gig economy.
Despite this, freelancers, contractors and the self-employed face significant challenges when accessing banking services. Traditional approaches to providing financial services often do not fit. Big banks, recognizing the importance of this market segment, already invested in developing gig economy-targeted products and services. Credit unions must do the same or risk losing market share.
Michael Carter, EVP, Strategic Resource Management
The single most impactful innovation in the last decade was from the iPhone’s initial release. While technically introduced 12 years ago, the offspring from it (e.g., tablets, wearables, Alexa, Google Home), and the enhancements to it transformed the way we live and work. We can hardly imagine what life was like before these devices entered the fold, which makes it hard to believe that in the next 10 years they will disappear from our lives – at least in their current form.
Initially, voice-activated interfaces will fundamentally change how we interact with them and, then, technological augmentation will erase them. Augmentation of human capabilities that enhance our quality of life, productivity, pleasure, knowledge – all delivered within the ‘make my life more convenient’ – will see adoption with the same enthusiasm as the smartphone. No more devices dropped, lost or stolen, no more broken screens, no more typing, touching or swiping. Authentication by DNA, banking with a thought, photographic memories – and the band plays on.
Mark L. Rockefeller, CEO/co-founder of StreetShares
Several major advancements and changes affected credit unions during the last 10 years. Millennials [in banking] played an important part. How this generation perceives credit unions, digital and mobile banking channels and other services is shaping the future competitive ground for credit unions. Credit unions are discovering you can develop partnerships and third-party relationships to become and remain relevant and competitive.
Over the next 10 years, generational wealth transfers from baby boomers and Gen X, to millennials and Gen Z will spur an emphasis on creating an all-in-one, omnichannel experience for consumers and businesses. Growth in the use of artificial intelligence, machine learning and open banking standards will flourish as big data leads the charge on advanced investment strategies and long-term financial management recommendations. Core network providers will see challenges as banking-as-a-service or lending-as-a-service gain more momentum as well. How credit unions address these issues will directly determine how they will survive and grow in the decade to come.
George Nagrodsky, founder, chair and director, TCI
Significant advancements in technology, an increasing reliance on the mobile channel and mobile devices, as well as the growing demand for digital transformation marked the past decade. Credit unions made great strides in adapting modern technology tools to interact with more effectively and efficiently and engage members. Members not only expect, but demand a seamless, intuitive experience regardless if they are using a mobile device, a tablet, personal computer or more traditional channels such as phone or in-branch.
To address ever-evolving member demands, credit unions adopted digital transformation enabling solutions, deployed relevant online products and services and integrated automated workflows to streamline processes and enable faster transactions. Part of this transformation, the migration from a physical server infrastructure to more nimble, scalable cloud-based environment, provided credit unions more control over their lending environment, as well as other business areas. To be successful, credit unions deployed digital tools and services that are responsive, configurable and automated to provide members a frictionless experience.
Capturing and leveraging member data to guide decisions, improve marketing campaigns and boost cross-selling efforts with tailored, relevant offers, products and services will become an even greater priority for credit unions.
Ben Fishbune, Lead Solutions Engineer at Xamin
“Over the past 10 years, the shift to digital has proven to be a challenge for many legacy businesses, and as the industry approaches a new decade, transitioning to being fully digital is increasingly important to modernize service delivery and the member experience all while pushing efficiency.”
The industry can also expect to see more cloud adoption in the credit union space. Credit unions have lagged behind most industries in implementation.
The next step from cloud adoption and a digital platform is automation in the form of AI and machine learning, increasing productivity, improving the member experience, eliminating risk of human error and reducing costs. Credit unions may be known for their incredible member service, but the adoption of analytics will be increasingly importance as understanding and utilizing analytics becomes imperative.
While security has always been a key trend in the financial industry, it is increasingly important for credit unions to keep up with the latest in security trends to manage risk and to protect members. SHARE ON FACEBOOK
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).