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Digital banking and the benefits

Sercle Team

27/05/21

What is digital banking transformation?

A digital banking transformation enables traditional financial organisations to use digital technology to improve or change their processes, products or services to better meet the needs of their customers.

There has been a significant increase in traditional banks using mobile apps and artificial intelligence via chatbots. These have both been popular with consumers, as they allow quicker, on-the-go access and immediate query resolution for customers.

 

Why digital banking benefits credit unions

Credit unions are known for their excellent customer service and member-centric approach. This goes a long way towards both supporting and empowering members. While the big banks invest in new technology and innovation, credit unions could also benefit by implementing a digital transformation strategy

 

Future proofing the industry

Credit unions excel at personal, face-to-face customer service and understanding their members’ needs. However, as a result of Covid-19, credit unions faced the ultimate test with the sector’s branches forced to close.

75% of credit union members faced disruption to their finances during the pandemic1. On the other hand, credit unions were focused on dealing with overwhelming call volumes or using digital channels for the first time. 

It’s clear that implementing new strategies for communication and digital processes would empower members and futureproof the sector.

 

Attract younger members

With millennials spending almost a quarter of their time on their mobiles2, it showcases the importance of mobile-friendly banking and digital applications when acquiring the next generation of customers.

As many young people will have grown up with technology and used digital banking with traditional high street lenders, implementing a digital banking strategy will help to meet their needs, whilst also exceeding their expectations through existing credit union features and benefits.

 

Member focus

As a member focused organisation, credit unions are always striving to improve their members’ experience for the better. Digital banking transformation can create a quicker, more responsive and efficient service for consumers, ultimately, making their day-to-day lives easier.

Consider connecting with your members via their preferred digital platforms, engaging with them via digital tools to support money management or offering new ways to make payments online. These are all tactics which could improve their experience and help credit unions stand out amongst their digital first competitors.

 

Sercle’s family of products and services propel credit unions into the digital financial revolution, using technology, innovation and excellence to keep your world turning.

If you’re a credit union, get in touch today!

 

References

1 https://www.finextra.com/blogposting/19228/how-credit-unions-are-managing-member-experience-during-covid-19

2 https://www.finextra.com/blogposting/7929/young-people-the-future-of-digital-banking