The pandemic changed (almost) everything, including the necessity for digital banking solutions that easily flex to address changing market needs. To address increased demand, many credit unions continue to deploy feature updates to their current online, mobile, and digital banking channels to meet immediate needs, hoping these “patches” will carry them through the next wave of change. Like it or not, digital banking is here to stay, and adoption rates confirm that members prefer the convenience of banking remotely—although their expectations around service levels and personalization closely match what they envision when in the branch.
You may question if these expectations are attainable, as myths and false fears often hold institutions back, thinking they can get by without modernizing their digital banking solutions. For some, a “few new features” may suffice, but these updates will likely not sustain for extended timelines.
We’ve debunked some of the more common digital banking myths. Remaining relevant and competitive also means embracing new solutions, which provide growth opportunity for your credit union and drive loyalty for your members, well into the future.
The truth: Credit unions are known for their connection to members and the community overall—and that doesn’t have to change. By leveraging machine learning, data analytics, and other intelligent capabilities, you’ll grow member loyalty by upselling, cross-selling, and easily deploying targeted campaigns that keep members in-solution and engaged. These personalized messages powered by members’ own behaviors, financial stories, and life events (to name a few), deliver hyper-targeted touches that present the same information about new products, services, and education as if they were engaging in a branch.
The truth: Day-to-day banking can easily be performed through online, mobile, and digital banking channels. With robust out-of-the-box features in modern solutions, like personal financial management (PFM), personal insights, gamification, and small business banking (SMB) tools, members remain engaged and in-solution with a complete digital ecosystem at their fingertips. Think of your digital banking platform as a one-stop shop for transacting, onboarding/lending, moving money, financial advice, and more.
The truth: Modern digital banking platforms are built with the highest level of attention to security and best practices, encrypted and designed to protect your institution and members without compromising user experience. When evaluating a new platform, it’s important to consider role-based access and permissions, configurable usernames and passwords, biometric authentication options, and other fraud and account takeover prevention tools like multi-factor authentication that keep transactions and personal data secure.
The truth: Modern digital banking platforms deliver a lower total cost of ownership and increase efficiencies. With open and API-based architectures, digital banking solutions quickly and easily flex to meet changing demands and to interface with third-party capabilities as needs arise. Those solutions that also include software development kits, or SDKs, offer added levels of customization, knowing that one-size-never-fits-all. This scalability makes it easy and cost-effective to address unique needs and goals, both for your credit union and members.
The truth: Generation Xers and baby boomers alike enjoy the convenience of online and mobile banking, with remote and digital channels gaining impressive favor among older generations. In fact, more than 50% of baby boomers prefer to bank digitally. For all, closing the education gap remains critical in gaining adoption and sustaining comfort levels—showing the benefits and simplicity of transacting.
Digital banking is here to stay, and credit unions must embrace newer, more modern solutions that allow your institution to support members through the channels they wish to bank.
Alogent Digital’s NXT platform is a unified online, mobile, and digital banking platform with integrated capabilities for consumers and businesses. Built from the ground up on the most modern tech stack, its open and API-based platform is scalable and configurable, paired with hundreds of pre-build configurations to leading industry solutions that address member needs today and well into the future. Learn more at https://info.alogent.com/learn-more-nxt-cuna.
JASON SCHWABLINE is chief strategy officer at Alogent.