3 strategies for credit unions to build buy-in for digital banking transformation
Credit unions have always been about building strong relationships. And what that requires evolves over time as member needs and expectations change. Exceptional branch service is still important, but to retain and attract members today, organizations need to provide the latest digital banking capabilities.
For many credit unions, however, it can be challenging to get everyone on board for making the leap to a modern digital platform. How can they build champions for change?
Here are three perspectives to help make the business case with all of your key stakeholders.
1 – Focus on bottom-line impact
First and foremost, look at how digital banking innovation can positively impact growth. Meeting member needs with the latest, in-demand capabilities positions credit unions for multiple wins, including:
- Improve retention – In a time when many consumers are willing to switch providers to get a better digital banking experience, reducing churn is critically important. As a real-world example, before transitioning to Bankjoy’s digital platform, Directions Credit Union was challenged with declining member satisfaction and a rising risk of attrition. Members frequently complained about the mobile app’s lack of functionality, slow speed, and outages. After the new digital services went live, many members expressed delight and Direction's app store ratings jumped from 1.9 to 4.8.
- Increase lifetime value – Replacing cumbersome processes with digital efficiency opens up more cross-sell opportunities. For example, offering members the ability to apply for loans online and get approved in minutes could be a powerful new revenue driver.
- Boost acquisition – Another critical growth opportunity is offering online account opening (OAO) that’s fast, simple, and digital end-to-end. Up to 70% of consumers abandon OAO because it’s too complicated.(1) Credit unions that provide a seamless onboarding experience are positioned to capture significant growth over competitors that are falling behind -- particularly with potentially profitable segments like millennials and Gen-Z.
- Lower operating costs – Offering a seamlessly easy digital experience also helps reduce the time and cost of member support, and training for support and sales teams. With their new mobile banking services, Directions Credit Union noted the ease of use was resulting in fewer support calls, and no more complaint calls about a slow system or app outages.
2 – Focus on the ease and speed of implementation
Speed-to-market is another core factor in building buy-in for a new digital banking solution. A common perception is that implementation will be so time and resource-intensive that it’s cost-prohibitive. But fintech innovators like Bankjoy are proving otherwise.
With the right technology partner, credit unions can deliver results quickly with limited IT resources required. For instance, when Bankjoy collaborated with Directions Credit Union, they had the test environment available one week after purchase, and the production site ready only a month later.
Unlike legacy systems, a modern digital platform built on an open architecture makes it easy for credit unions to add enhanced capabilities and drive ongoing innovation using APIs.
3 – Focus on competitive advantage
Credit unions that still rely on legacy systems face an increasingly steep uphill climb to stay relevant. Many financial institutions (of all sizes) are already in-market with the latest online and mobile capabilities. Investing in digital banking transformation can help credit unions level the playing field.
Think of a mobile app experience that offers Apple-like simplicity, powered by a flexible, open-architecture platform. And market advantage by using the latest, industry-leading technologies like Plaid, Allied Payments, and Prisma marketing automation via easy API integration.
These transformative capabilities give credit unions the power to grow with the market, keep pace with changing demands, and take advantage of emerging innovations.
Build buy-in for a more successful future – How Bankjoy can help
Change can be challenging for any organization, and migrating to a new digital banking platform is a whopper. Yet with a highly collaborative fintech partner like Bankjoy, the transformation can be a smooth and rewarding investment.