Why credit unions should focus on staffing, fintech and ITM in 2023
The most successful CUs will concentrate on strategies and investments that will help them attract and retain members.
The new year is off to a busy start, and credit unions have a long to-do list. A series of interest rate increases, regulatory oversight and rising personnel and operating costs are the most important things for most institutions. When planning for the rest of 2023 and beyond, credit unions need to take a hard look at third-party contracts while keeping other important considerations in mind.
Staffing issues will continue, and artificial intelligence can help address this ongoing concern. Frontline workers, especially contact center representatives and tellers, feel the pain of short staffing. Employees are more likely to embrace the relief that AI can bring when it becomes clear that the technology will not lead to massive layoffs.
In addition, when wage pressures are present, financial institutions must have an elaborate strategy to attract and retain top performers. For effective employee retention, they need to highlight business culture and employee engagement initiatives. To have a satisfied and happy staff, credit unions must invest in professional development.
Beyond AI, credit unions should become more savvy about the fintech market, including ways to reinvent traditional services and explore areas such as digital assets and the metaverse. Credit unions should set aside time and money, even if they don’t make immediate investments, to research the many options available, meet with vendors and find out where they stand with technology.
The use of digital assets will increase. More regulation is coming, which will clarify the driving rules. Trusted financial institutions like credit unions can benefit from the recent collapse of well-known crypto companies, but they need to do their homework before investing. Remember that modern infrastructure and technologies are more important than changing monetary values. Even if they currently have no intention of offering services related to digital assets, credit unions should budget for due diligence now. Digital mapping should be considered before starting a fintech-oriented path.
Another technical improvement worth considering is interactive counting machines (ITM). As many institutions consolidate and eliminate branches, they still need to manage intricate, high-value transactions and meet the demands of specific consumer categories. ITMs are an ideal method to close this gap.
The average ITM can cost $55,000 to $80,000, excluding one-time infrastructure costs of $250,000 to $500,000, according to the American Bankers Association. However, if credit unions properly inform and promote ITMs to members, they may recoup their costs many times over.
The most successful credit unions will concentrate on strategies and investments that will help them attract and retain members. AI, fintech and ITM are three promising fields; Therefore, organizations considering these investments must be aware of the long-term ROI they offer to ensure that the technology can effectively support the organization’s long-term vision and growth goals.
Loretta Weller-Mowers is a digital strategist for credit union consulting firm Sievewright & Associates, an SRM company.
