4 minutes
Explore how cooperative principles and agile thinking can help credit union leaders effectively guide their teams in making impactful, competitive digital updates without breaking the bank.
Eighty percent of the U.S. population has adopted digital banking (Deloiite). That means if credit unions want to compete in a complex environment of not only big banks but also digital-only banks and fintechs, then we need strong digital strategies. Digital transformation can feel overwhelming, especially when credit unions already face challenges of small teams and tight budgets. Happily, credit union leaders can guide their teams in making a big impact on a small budget through both cooperative and agile thinking.
Member-Focused: What Friction Points Need to Be Solved?
By gathering member input right from the beginning of a project, you can focus the direction of your credit union’s digital transformation on areas that will have the most service impact. Start by polling members about their banking experience. Ask if they have any difficulties using your current platforms or what services they would like to access digitally. You can also review data, such as website traffic. Pay attention to how long visitors engage with services like online loan applications, and if they don’t complete the process, note the point of abandonment.
What Are the Small Steps We Can Take?
An agile, budget-conscious approach to innovation begins with small, prioritized steps. In the tech industry, this is what is known as the minimum viable product strategy (MVP). The finished product doesn’t have to happen day one—the key is doing something and getting started, getting feedback, learning, adjusting, and then trying again after making improvements. It’s a cost-effective and member-centric process that empowers credit unions to remain competitive by introducing manageable, ongoing digital improvements.
Streamlining and enhancing your current processes and digital systems are good places to start. Some areas to consider include:
- Updates: Before introducing new platforms or tools, consider whether any of your current systems could be reconfigured or updated to meet your digital service needs. Could you introduce one new feature like e-signatures?
- Repetitive Tasks: Consider replacing these with automation, which saves money and time so staff can focus more on serving members. AI chatbots can answer commonly asked questions on your website or AI voice agents make routine outbound calls so staff can focus on more complex situations.
- Member Insights: AI can also help you glean additional insights about your members’ needs so your credit union can offer more effective solutions.
Don’t worry if your credit union needs help implementing these steps. You can find many affordable solutions through partnerships with other credit unions or CUSOs.
How Can My Team Leverage Our Credit Union’s Cooperative Advantage?
As mentioned above, your credit union doesn’t have to go through its digital transformation alone. Fintechs provide enhanced, customizable, and scalable options that match your budget.
You can also reach out to your network of industry peers. Ask them what successful digital updates they have implemented and any insights they’ve gained in the process. You can also work with fellow credit unions to share the cost of developing digital solutions specially designed for our movement or by investing in collective funds for innovative technology through CUSOs.
How Can I Empower an Innovative Team?
Cooperative power also includes your own internal team. Frontline staff can be valuable contributors in the development and implementation of your credit union’s digital transformation. Actively seek out their input throughout the process. Encourage frontline employees to submit ideas for new digital tools and ask them about processes or tools that cause friction and could use updating. Include them in open brainstorming sessions, demos, testing, and request their feedback on the digital updates you’ve implemented.
With the help of agile thinking and cooperation, credit unions of any size can successfully implement digital updates. This approach, like your credit union, puts people at the heart of digital transformation, basing updates on their actual needs and wants. It is crucial for organizing your credit union’s digital transformation into effective, manageable steps that result in timely, cost-effective, and relevant updates that truly make a difference to your members
Doug Williams is VP of Product Development and Strategy for Envisant. He brings 20 years of experience in the area of financial services with a broad background that includes commercial credit analysis, consumer lending, executive leadership, as well as developing and formulating strategic plans. In his current role at Envisant, Doug is responsible for identifying, evaluating, and implementing new products and services across business units.
