Key Trend Summary
Finalytics.ai believes that in 2022 members will expect to be able to access 75% of all banking services digitally.
Digital is the Branch
Unprecedented pace of adoption of full service digital banking by members fueled by pandemic.
- Five years ago, credit unions saw about 15% of the business that was previously done in branches conducted through their digital channels.
- Two years later, in 2018, 25% of members were using digital channels to match their needs with the institution’s offerings.
- The Covid-19 pandemic accelerated this trend and in 2021 credit unions saw an average of 50% of their business coming through digital channels.
Finalytics.ai believes that this trend toward full service digital banking will reach a tipping point in 2022. Members of credit unions will default primarily to digital channels when searching for solutions to match their financial needs.
Attributes of Winning Credit Unions
This tipping point will bring exponential growth to those credit unions that are embracing the combination of big data and artificial intelligence to orchestrate a unique journey for each member. These credit unions will exhibit the following characteristics.
- Cultural transformation will precede digital transformation. Winning credit unions will embrace the cultural transformation that must precede digital transformation to succeed. This is the foundation for redefining how value is delivered to members.
- Digital will be relational, not primarily transactional. Winning credit unions will be laser focused on augmenting existing digital platforms with technology that creates a relational rather than transactional digital experience.
- Intelligent AI and big data will be embraced. Winning credit unions will go beyond personalization and invest in machine learning AI and big data platforms capable anticipating member needs. ?
By transforming their cultures, adopting a relational rather than transactional only approach to digital and leveraging emerging technologies to provide uniquely tailored advice and direction for their existing and prospect members, these winning credit unions will level the competitive landscape meeting and exceeding the value delivered by mega and digital-only banks.