The past two years have seen an acceleration in technology adoption, spurred by the global pandemic. In many industries, including the financial services, these changes were necessary to ensure service providers could keep operating while also remaining compliant with regulations.
Rapidly shifting member preferences and emerging technologies are just a few of the factors that require credit unions to keep on top of digital trends. As they face increasingly competitive landscapes and an environment with higher regulatory requirements, it’s important for credit unions to consider technology trends to meet these new challenges and survive and succeed in 2022 and beyond.
Adoption of the cloud has accelerated exponentially over the last few years and will continue into the future. What’s important to keep in mind about cloud technology is it serves as a foundation for most other technology trends. Credit unions need an IT infrastructure that can accommodate artificial intelligence capabilities such as machine learning, natural language processing, and advanced data analytics in order to maximize the value of these new technologies and keep up with the competition.
This can be done through the implementation of a cloud-based, Software-as-a-Service (SaaS) solution that offers dynamic capacity allocation, allowing for increased or decreased capacity based on changing business requirements.
Advanced data analytics
Customer relationships are created from an in-depth knowledge of members. In the past, this was only possible if members visited their local branches and built up a rapport with those employees they usually dealt with. Member experience has changed significantly in today’s world, with an emphasis on digital, personal, and seamless interactions. The days of providers solely managing members’ account details and cards are long gone. Members now expect an experience that anticipates their needs and delivers a personalized and customized solution.
Advanced data analytics allows credit unions to leverage real-time data to drive a deeper relationship by providing customized experiences based on members’ current needs.
Analytics data can be used to help find out more about what members’ needs and desires are, from the products or services they have interacted with, or their preferred channels and mediums. This information allows credit unions to create a personalized experience for each member. That could include anything from content provided in emails to specific advice or services recommended over the phone.
Data security and compliance
The next generation of data infrastructure must be built around a foundation of data security, compliance, and cybersecurity. Organizations around the globe are re-evaluating their approach to data management in light of the latest data breach headlines. They are prioritizing data security by investing in data encryption, tokenization, and other best practices to protect sensitive data. They are also putting more effort into data compliance and regulatory compliance. Finally, they are investing in a data infrastructure that will protect their businesses against future cyber threats.
In order to ensure credit unions are compliant with the changing needs of their members, it is important that they implement more stringent security standards. As digital transactions become increasingly complex and prevalent, the compliance requirements for these types of transactions also increase. This means any organization in the financial services industry will face this type of expense and resource requirement for data protection and security issues as well; which makes implementing higher levels of standards all the more crucial.
Technology to enhance member experience
An enhanced member experience through new digital offerings, including online banking and mobile banking apps, as well as social media platforms that are designed to engage members in conversation with credit unions on a regular basis, so they will feel a greater sense of belonging to the institution where they bank.
To accomplish this, credit unions can invest in technology that is highly interactive and engaging, such as artificial intelligence, chatbots, and virtual reality. Social media platforms can be used in the same way, by establishing a presence on these sites, engaging in conversations with members, and answering questions as they are asked.
The need for fast-paced technology innovation in order to stay competitive in the marketplace, especially when it comes to emerging business models such as mobile banking apps for customers who have smartphones or tablets and cloud-based applications for financial services providers. This type of technology allows credit unions to scale up or down quickly according to customer demand and enables them to deliver a better experience for their members.
Leveraging 2022 technology trends for your credit union
When it comes to dealing with people’s money, the most important thing that matters is trust. Embracing technology trends won’t change what your credit union does but leverage that advantage to do it better. Long-term success in the digital age requires a partner to support your technology strategies and investments. If your business is looking to incorporate new digital technologies into your credit union’s operations, talk to the IT consultants at PWR Technologies today and reach your goals sooner.