3 Technology Investments Credit Unions Will Make in 2020
We've reached an inflection point. Credit unions are investing less in technology than mega and regional banks while membership continues to grow 20 percent year over year. 98 percent of companies report revenue loss due to poor transaction management. And, consumer expectations continue to rise thanks to the convenience and efficiencies we all experience in every other aspect of our lives.
Technology, however, can provide the silver lining opportunity for your business this year.
- Baby Boomers are now far more likely to own a smartphone than they were a decade ago (68% now vs. 25% in 2011)
- Only 13% of Gen Z cares about convenient branch locations, while a quarter of them will avoid or stop using a service due to poor mobile design.
- Getting documents notarized is person is still one of the top complaints from members.
As 2020 kicks off, we put together a list of the top technology investments credit unions are making to enhance security, elevate customer experience, reduce environmental impact, and automate key business workflows to improve the bottom line.
Digital Notarization Tools to Automate Your Workflows and Improve Operational Efficiencies
Named to the Forbes Best-in-State Credit Unions list, Baxter Credit Union (BCU) is one of the largest credit unions in the country. Serving almost 250,000 members in the United States and Puerto Rico, BCU has been pushing the boundaries on how they serve customers for nearly 40 years.
One of their largest lines of business – auto loan financing – has seen a spike in popularity in the last decade.
Before using Notarize, BCU had been asking its members to sign and notarize paper power of attorney forms to use their car as a lien should the member default on their loan payment. Because the POA was done on paper, the loan and lien forms were rarely completed in the same timeframe, requiring BCU to take on more loan risk without guaranteed collateral. With ambitions to be one of the most technology-forward credit unions in the country, BCU built a digital suite of tools and services to help them fund loans the same day a member applies. They've streamlined the loan sales department process and improved the member experience.
Mobile Apps to Capture and Retain Gen Z Members
Members of Gen Z are now young adults and graduating college. They're making big financial decisions for the first time. They're choosing where to bank long-term – perhaps for their entire lives. This is the chance for credit unions to claim market share, but it requires creativity and open-mindedness. Only 13% of Gen Z cares about convenient branch locations, while a quarter of them will avoid or stop using a service due to poor mobile design.
Credit unions should rely on technology that makes the more nimble to meet the demands of the Gen Z population.
But mobile is bigger than Gen Z.
Boomers are now far more likely to own a smartphone than they were a decade ago (68% now vs. 25% in 2011), and from 2018 to 2019, Boomers increased their use of smartphones and tablets by one-third.
Credit unions and banks need to lean into mobile technology. Bank of America and other financial institutions have gone all in on mobile, knowing its power to be an extension of the in-branch experience. To date, more than six million customers use Erica, the Bank of America assistant.
Chatbots to Complement the Branch Experience
Chatbots have been around for decades, primarily being viewed as an aide to customer support requests. Now, the most tech-forward companies are using chat for all aspects of the funnel: conversion on the website, up-selling products, and support.
Elevate Credit Union, for example, asks which branch you want to be connected with to be hyper focused and personalized on how they can best use this digital medium to answer important questions.
Start With One Branch, One Team
You can erase human error and increase output without adding employees. You can be the chameleon of your market, changing as quickly as the market changes around you. Unlocking business capacity has a trickle-down effect that will benefit everything you do.
The most innovative credit unions, banks, and financial services companies start with one branch or one team. The test, trial, and iterate on something that their members will love. Now is your chance.
See how Notarize is transforming the digital experiences for Credit Unions here.