To Achieve Digital Transformation Success in Credit Unions, Member Experience Must Be Enhanced
Digital transformation in credit unions has become a higher priority due to several driving forces. Online services from both traditional and digital-only banks have become accessible to consumers, regardless of physical location. Consumer expectations have leapt ahead based on their experience of digital communication and exposure to online services from other sectors. And the COVID-19 pandemic accelerated the need for digital methods in order to reach and assist members.
For credit unions, digital transformation is important, but it must be done in the context of the credit union’s principal function, which is to provide high-touch, personalized financial services to its members and local community. If a credit union’s digital transformation efforts fail to maintain or improve the member experience it has provided in the past, there is a real risk of member dissatisfaction and even attrition.
Common roadblocks to digital transformation in credit unions
First, let’s look at the challenges credit unions face when embarking on a digital transformation plan.
The 3 most common roadblocks to digital transformation in credit unions are:
- Dealing with legacy technologies, including core systems – most credit unions do not have the resources, nor the inclination, to replace core systems, or to embark on lengthy integration projects.
- Lack of IT budget and/or skilled resources – credit unions typically operate with tight IT budgets and small teams. They don’t always have the luxury of specialist skills needed to identify, integrate, and maintain multiple digital platforms.
- Concerns around data security and regulatory compliance – with data protection laws becoming stricter around the globe, and consumers becoming ever more aware of privacy, any digital transformation project must have data security and regulatory compliance at its core.
Fortunately, none of these are permanent roadblocks to digital transformation.
How digital transformation in credit unions impacts member experience
Member experience refers to the sum of many things – how a member feels about the service they receive, their response to every interaction with their credit union and even their perception of what the credit union is doing for the community.
For digital transformation to be considered successful, the member experience (and employee experience) must be enhanced. This cannot be achieved by simply digitalizing previously analog processes. Digital transformation requires a change in strategic thinking that puts member experience at the core of all investment decisions.
Digital transformation gives the credit union the opportunity to bridge member experiences across all products and services, creating a consistent experience no matter how, where or when the member engages. The ultimate objective is to increase member engagement and retention and nurture a loyal member base.
How outsourcing accelerates digital transformation in credit unions
Many of the digital transformation challenges credit unions face can be resolved by outsourcing key technologies that will fast track the process.
Take member communication as an example. Outsourcing member communication to an experienced vendor with a comprehensive customer communications management platform, can help a credit union navigate through the common roadblocks quickly and efficiently.
“Digital transformation can be achieved by harnessing best of breed platforms to the core technology stack without requiring a massive upgrade or replacement.”
Gone are the days where massive integration projects were the only way to launch new functionality or radically change the member experience. Nowadays, credit unions have several options, such as cloud platforms and APIs (Application Programming Interfaces), that help to leverage available technology to drive digital transformation.
With the advent of Software as a Service, credit unions can onboard new capabilities and extend their IT teams without massive capital outlay or building the skills inhouse. What’s more, outsourcing means that data security and regulatory compliance are managed by experts in those fields.
Bring in a partner with proven experience in helping credit unions transform digitally
It’s vital to partner with a vendor that has proven experience in helping credit unions transform digitally, and the use cases to prove it. Doxim’s platform and infrastructure enables a fast, low investment opportunity to leverage communications management to enhance member experience as quickly as possible.
Credit unions can empower their business users to do what they do best. Our industry-focused platform offers self-service capabilities, wherever appropriate. Your users will have the tools that enable them to be agile in response to market changes, while your organization can grow your base and maintain the intimacy and personalized service your members expect.
With our CCM expertise across digital and print, Doxim keeps channels connected and eliminates the need to manage disparate systems and multiple vendors. Doxim is regularly audited and maintains the strictest compliance levels per the requirements of multiple highly regulated industries.
