Digital transformation is critical to credit union strategic planning, and prioritizing technology can enhance member experience, drive growth, and ensure long-term success. Learn how with these key strategies and insight.
Fall is a busy time of year: children return to school and related activities, holiday and family travel begins, and strategic planning kicks into high gear for credit unions. Thinking about it all at once is enough to make anyone’s head spin, but look at it this way: fall also represents a period of release and re-growth.
Strategic planning and budgeting allow credit unions to release the old and focus on innovation and re-growth while paving the way for the future. In today’s competitive financial services landscape, how can credit unions remain relevant, meet evolving member demands, and ensure sustainable growth?
The answer lies in digital transformation.
With a focus on mission, vision, goals, processes, benchmarks, and budget, strategic planning season provides credit union leaders with critical time to reassess which strategies, investments, and pivots will have the most impact for long-term success. By prioritizing digital solutions – like AI, SaaS, APIs, UX, UI, fintech, and mobile apps – credit unions can focus on the future and deliver superior member experiences with peace of mind.
How Credit Unions will Shift This Year and Beyond
As non-profit, community-rooted financial services institutions, credit unions are making an impact in the lives of everyday people across the United States. To date, there are nearly 4,600 federally insured credit unions which are home to over 140 million members with collective assets currently valued at $2.31 trillion. In fact, membership and asset value continues to grow, with an increase of 3.8 million members and 4.4 percent total asset increase in the past year, according to NCUA.
This growth, while exciting, also signals the importance of adapting online banking services and implementing digital transformation to meet the needs of an expanding member base in an ever-evolving society.
On the other hand, every industry – not just credit unions – are being impacted by huge technological shifts in recent years. AI, automation, robotics, and machine learning are expanding how leaders do business and how people engage with the economy.
Credit unions are no exception to this shift.
Members, especially Millennials and Gen Z, are accustomed to digital-first interactions, including within financial services. Younger generations demand convenience, speed, and personalization that compete with what they experience in their daily digital lives.
Traditional strategies, like in-branch interactions and in-person services, are losing relevance. A study shows young adults, those 45 and under, are two times more likely to become members of online-only banks. For this generation, interactive technologies are the norm, flooding their everyday lives, from social media and shopping to smart TVs and more.
With this in mind, credit unions should evolve to fit within a new context of a new, digitally-driven society. Strategic planning and budgeting give credit unions the opportunity to reevaluate outdated systems that are preventing them from meeting current member demands and expectations – and implement new, future-first solutions.
Prepare for the Future with Strategic Planning
This time of year provides an opportunity to push out the old and bring in the new – with intention, purpose, and planning. Credit unions use strategic planning as a period to assess current priorities and map out future goals. With member expectations leaning toward digital innovation, credit unions must plan and act accordingly.
Start by conducting an observation of a credit union’s strengths, weaknesses, opportunities, and threats – a common business practice known as a SWOT analysis, which provides the framework to evaluate company positioning with fresh perspectives and ideas.
Always remain focused on the desired outcomes and objectives. Gather resources, proof points, and data sets to keep the analysis rooted in fact. Welcome new voices to the conversation to compile a variety of feedback and insight.
Key questions for a strategic planning table-setting discussion include:
- What are we doing well?
- Where do we want to go in the future?
- What resources do we have?
- What resources will we need to achieve our goals?
- What are our challenges and limits?
- What are common trends in our industry?
- How are member trends and expectations changing?
- What member demographics are we not targeting?
- What new technology can we use to streamline services and increase output?
- What potential obstacles might we face along the way?
Beyond this discussion, review the credit union’s mission, vision, values, and quarterly reports to re-align current conditions with future aspirations, developing a solid, step-wise, measurable strategy to implement purposeful change for the better.
With the rapid rise of digital technology implementation in everyday life and business, this year’s strategic planning season is especially pivotal for credit unions to shape a strong foundation for the future. By investing in fintech, APIs, digital tools, and online platforms, credit unions can enhance the member experience, streamline internal processes, and create new avenues for member and asset growth.
Digital Transformation Starts Now
With stiff competition from large, brick-and-mortar banks and online-only banks, credit unions must embrace new technologies and digital transformation to attract new members and retain existing ones, while continuing to provide people-first financial services.
The credit union differentiator is a focus on “people helping people.” How can this ideology be implemented through the use of technology?
Credit unions should consider allocating a portion of their budget, manpower, and resources specifically for technology upgrades and member-facing innovations. Rather than viewing these investments as a cost, they should be considered as essential components of a broader growth strategy.
From improving digital banking platforms to integrating fintech solutions and establishing real-time online financial wellness tools, these investments will yield long-term returns in member satisfaction, retention, and acquisition, while keeping people – not tech – first and foremost.
A recent study by McKinsey & Company shows the top tech shifts and digital changes that credit unions can implement to usher in the future. Here are the highlights:
- Meet members where they are: in online spaces and digital channels.
- Provide real-time, personalized digital banking services in an easy-to-use format.
- Rely on AI, API, and fintech partners to expand the limits of a rigid core system.
Today’s members expect the same level of digital integration from their financial services provider as they do from other industries, such as retail or entertainment. Most importantly, they want services that are personalized, fast, and accessible at their fingertips. Without strategic investment in digital transformation, credit unions risk losing members to competitors that offer more robust, tech-driven services.
A Key Solution for Credit Unions: Fintech Connect™
Digital transformation doesn’t have to be overwhelming or challenging. In fact, with the right partner, it is a breeze.
Fintech Connect™, a digital solution developed and backed by Constellation Digital Partners, is designed to provide credit unions with a future-proof pathway enhancing member experiences and streamlining operations with scalable digital integrations.
It’s designed with flexibility in mind and security at its core. Fintech Connect™ gives credit unions the power and autonomy to integrate third-party fintech services quickly and seamlessly, without disrupting core legacy systems. Whether it’s offering personalized financial tools, automating routine processes, or providing seamless mobile banking experiences, this platform and partnership allows credit unions to customize their digital services to meet specific member needs.
Plus, as member demands continue to evolve, credit unions can keep innovating their services, all while maintaining robust security protocols that protect member data and ensure regulatory compliance. Fintech Connect™ is built to support credit unions at every stage of their digital transformation journey.
Key features include:
- Expanded service offerings while retaining current online and mobile providers
- Easy access to highly sought-after digital banking solutions with implementation support
- Freedom to choose services with aligned brand experiences and modern capabilities
Constellation Digital Partners is proud to provide member-centric digital tools to help credit unions remain innovative and focused on helping people thrive and achieve financial wellness in the digital age.
Connect with Constellation Digital Partners
As credit unions enter the strategic planning season, the lesson is clear: investing in digital transformation is a strategic necessity to establishing a future-focused, competitive advantage. By aligning budgeting and planning efforts with pathways to digital transformation, credit unions can enhance member experiences while driving long-term growth.
Ready to explore how Constellation’s Fintech Connect™ can bring your strategic plan to life? Contact us today to schedule a personalized consultation and learn how we can help your credit union navigate its digital transformation journey.
