Credit unions have long been a vital part of the financial landscape, known for their member-focused service and products.
While credit unions have always placed a strong emphasis on community and member needs, in today’s fast-paced and technology-driven world, they must also focus on reliable and current technology to remain competitive.
Bryan Doxford, Chief Strategy Officer at AVANA Companies, states, “Known for being member-focused, a credit union’s investment in technology will not only enhance the members’ journey but derive sustainable impact.”
Here’s why credit unions should evaluate their pain points and aim to solve for them by using quality fintech solutions.
To start, credit unions that invest in reliable and current technology can streamline their operations, which can drive value for members, employees, management and stakeholders.
Namely, automated processes, AI and digital tools can save the credit union time and money by reducing their need for repetitive, manually completed tasks.
In turn, this can free up credit union staff to focus more on value-add tasks, such as providing personalized service and trainings to members.
Enhancing the Member Experience
Furthermore, members and borrowers continue to increasingly rely on tech for their banking needs. Credit unions must be prepared to provide easy-to-use, at-your-fingertips solutions to keep members happy as well as make payments and deposits as needed.
Credit union members now expect to be able to perform transactions quickly and easily, access their accounts from anywhere, and receive prompt notifications and updates related to their account.
In a recent consumer survey, it was reported that 23% of credit union members would switch financial institutions for more innovative products.
Thus, credit unions that fail to provide this level of service risk losing a sizable membership to competitors that are more tech-forward.
It’s no secret that liquidity is a major focus across the financial services industry right now, especially for credit unions.
Certain technologies can help credit unions easily monitor and track cash flow so they have enough capital on hand to meet member withdrawals and other financial obligations.
Such tech includes Automated Clearing House Services (ACH), which allow credit unions to quickly and securely move funds electronically between financial institutions. This reduces the risk of delays in funds availability, and thus the credit union’s liquidity.
Other programs like account reconciliation, automated cash concentration and cash forecasting tools help credit unions optimize their cash balances, reduce borrowing costs and improve their overall liquidity position.
Last but not least, credit unions that prioritize fintech this year will be better equipped to compete with larger banks and other financial institutions.
By offering modern, user-friendly digital tools and platforms, credit unions can attract new members, expand into younger generations and effectively retain existing ones.
To get the most out of their technological investments, credit unions should work with vendors and partners that specialize in financial technology, and understand the issues facing the industry today.
Fintech isn’t going away – it’s only getting better. That also means it’s becoming a non-negotiable for members, a must-have for strategic oversight and a lifeline for CU employees.
About Extensia Financial
Established in 1998 and headquartered in Simi Valley, CA, Extensia Financial is one of the most seasoned credit union service organizations (CUSO) focused on commercial real estate lending. For decades, we have partnered with credit unions across the country to offer competitive and collaborative CRE loans. We also uniquely support and guide our partners through the entire lifecycle of our loans. Extensia Financial is a proud member of the AVANA Family of Companies.
Contact us today to learn more about becoming an Extensia Financial partner.