Why credit unions are adopting digital channels
Credit: Unsplash
With the advancement of technology in the past decade, there has been a corresponding rise in the adoption of digital channels by financial institutions like credit unions and banks. As the number of smartphone and internet users continue to rise around the world, heads of these financial institutions have realized that it would be best for them to create and maintain platforms online to increase their customer base and facilitate a more convenient and efficient service. Here are some of the benefits of digitally transforming credit unions:
Avenue to grow customer base
Credit Unions around the world provide billions of dollars worth of services to their customers but just five years ago, about 75% of these services were delivered offline. Since then, the usage of mobile devices have experienced exponential growth such that these devices alone account for 80% of internet usage worldwide. When taking these statistics into account, it is easy to see that there is a large number of potential customers on the internet (particularly millennials and generation Z) that credit unions can attract by adopting digital channels.
Ease of service
With digitization, credit unions and banks make their services more convenient for their customers. Even though the older generation might prefer to visit physical outlets, there are a lot of people grateful for the opportunity to transact online. Many of such institutions use MeridianLink API to develop their platforms to ensure seamless service on any device used to visit their website or application. Some credit unions or banks prefer to customize MeridianLink API interface to suit the unique services they offer.
Reduces cost of operations
Being on digital platforms allows credit unions to be more accessible to customers without hiring more staff to compensate. This mode of operation also increases productivity since there is less human error. It also gives managers access to business-related data and customer feedback at almost no extra cost to help them make better decisions and improve their organization’s services.
How to remain competitive in the digital space
Since many credit unions have established themselves in the digital space, there is more competition for customers so it is imperative that these businesses take steps to ensure that they are not left behind by their competitors. Some of these steps are:
- Avoid meaningless partnerships with vendors
While it is necessary to partner with third-party vendors to provide some digital services, keep it at a minimum and ensure that they are helping to create a top-notch and hassle-free experience for customers.
- Learn from your competitors
Since competitors are also in the digital space, it is easier for managers of credit unions to have a look at how they offer their services and integrate that into their own interface or operations.
Endnote
Credit Unions and Banks have now adopted digital channels to have access to more customers and improve their services. A huge number of these institutions use MeridianLink API or a customized variation of it on their digital platforms to deliver a seamless and smooth user experience to encourage customer loyalty. Lastly, since many credit unions are now online, there are certain steps needed to ensure they remain competitive.