EDITOR NOTE: Perhaps to remain competitive and relevant in an industry that’s rapidly going digital, credit unions are now entering the fray, looking to digitize legacy products, leverage technology, and adopt new fintech “innovations” like crypto payments. The Credit Union System Digitization Working Group--a collaborative group of 41 credit union industry leaders--is leading the charge toward the digital rebirth of this mature industry. In its 2021 industry outlook, you can get a glimpse of the collective’s strategic vision toward near-future credit union digitization. What’s not being mentioned, perhaps a blindspot resulting, ironically, from the brightness of its insights, is that the efficiency and speed the group is aiming to achieve may accelerate the erosion of financial privacy and security that members seek when joining a credit union. Every technological innovation comes with its negatives. Fintech is not immune to this “natural” principle. And like most companies outside of tech, credit unions may not see the existential fragility to which it’s situating its members.
WASHINGTON, DC (July 26, 2021) — The Credit Union System Digitization Working Group, led by Credit Union National Association (CUNA) Chief Engagement Officer Greg Michlig, today released its June 2021 Industry Outlook. The report gives an overview of current and expected digital trends in the financial services sector and explores ways credit unions can leverage technology to drive member satisfaction.
“This working group was created with both credit unions and their members in mind. We know that in this digital-first environment, member needs are changing,” said Michlig. “Our goal is to create broad awareness around what’s driving digitization and to take a closer look at what this means for the credit union system.”
The Credit Union System Digitization Working Group is divided into five workstreams that identify roadblocks, explore solutions, and execute ideas that will propel the digitization of the credit union industry. The report includes an overview of their goals and some of initial findings.
- The Analytics and Intelligence workstream is assessing how credit unions can leverage analytics tools to help their members track and achieve their financial goals.
- The Empower Employees workstream is examining how credit unions can use technology to compete, stay relevant, and attract new talent.
- The Member Relationships workstream is responsible for identifying digital solutions that would simplify the member experience.
- The Optimize Operations workstream is exploring the barriers credit unions face when implementing new technology into their systems.
- The Transform Products workstream is responsible for identifying fintech partnership opportunities that can help credit unions reach a new generation of members.
The Credit Union System Digitization Working Group evolved from the CUNA COVID-19 Restart and Recovery Task Force and is a collaborative effort of 41 leaders from across the credit union movement to ensure that credit unions and system partners can remain relevant in this fast-changing operating environment.
You can read the full June 2021 Industry Outlook here.
Original post from CUInsight