When it comes to operating a modern-day credit union, one critical idea to understand is that any investment in technology that reduces costs needs to simplify efficiency at the exact same time. Not only is this crucial for keeping up with an ever-changing marketplace, but it also assists with long-term stability as well.
With that in mind, there are a number of core advantages for credit unions that embrace this efficiency in their servicing operations that are worth exploring.
1. Member Retention
By far, the biggest reason to focus on operational efficiency for your credit union involves the increased level of member retention that you will enjoy. The more efficient your credit union is, through not only streamlining processes and responding to the need for digital interactions but also through embracing technologies like automation, the better the member experience you can offer will be. This is a key advantage in an era where competitors are cropping up all the time.
2. Reduction in Operating Costs
Another major benefit of increasing efficiency for credit unions has to do with the significant reduction in operating costs. The more efficient your organization is, the more profitable it will be. It will also take less time, energy, and ultimately money to focus on things like compliance and security if your credit union is as agile as it can be.
3. Increase in Operational Agility
Speaking of agility, this also segues into another one of the major benefits of increasing efficiency - empowering your credit union's ability to adapt to whatever life happens to throw at it.
As the still-ongoing COVID-19 pandemic succinctly illustrated, member expectations are changing all the time. Everyone knew that the industry was headed in a decidedly digital direction, but the pandemic acted as an accelerant to that end. Those organizations that were already in a position to embrace digital technologies like automation through strategic transformation were able to adapt and meet these new expectations. Those that weren't found themselves left behind by their savvier competitors.
4. Expansion of Services
Finally, one major reason why increasing efficiency in credit unions is so important has to do with how it allows your credit union to expand its services to again keep up with the evolving demands of the modern member.
Increasing efficiency lowers production costs through methods like running digital services in low-cost cloud computing environments. Not only are you able to offer a better array of services to members, but you do so via the most cost-effective methods available. This frees up valuable money in your budget that can be funneled into other areas of the credit union where it can make the most impact, which in and of itself is the most important advantage of all.
Continue to Increase Efficiency Through Technology
In the end, never forget that improving efficiency isn't something you only focus on temporarily. There will always be new technologies that become available and, as a result, there are always opportunities for improvement. There are always ways to streamline your existing processes to make them faster, more efficient, and more effective. Taking a look at this goal on a regular basis is the key to not only addressing the challenges of today, but better preparing yourself for the ones you might find tomorrow as well.
To find out more information about how to improve your efficiency as a credit union and the major benefits that you'll enjoy, click the button below to download FLEX's eGuide, "7 Key Ratios For Core System Efficiency."