Consider the evolution of how money is stored: First, it was put in a box in our home, then moved to a bank teller behind some bars, followed by storing it in huge vaults with giant doors and locking mechanisms, then into an ATM for easier access, and now it's just 0s and 1s transmitting through the internet. As times have changed, we've adapted to how we store and access our hard-earned dollars. People once demanded to know that their money was locked up safe but, as technology advanced with the internet and smartphones, we now want the ability to access and transfer it from wherever we are, whenever we want, however we want to. To keep up with the needs and expectations of credit unions and their members, core systems have had to evolve and adapt as well.

Remote access is no longer a nice-to-have, it's a must-have. Credit union members from all generations are increasingly smartphone reliant and the products and services available to them need to integrate into that world. Where remote deposit capture was once the sparkling gem of new tech, it's old hat now. Credit unions looking to provide their members even the most basic services need to offer remote and highly personalized banking services in order to stay competitive. Utilizing a modern, state-of-the-art core processor is the first step.

When credit unions build their annual strategy for the coming year, it's often focused on looking at last year's plan and tweaking it for the future, what systems or services can they get more legs from, what will they need to consider upgrading for the future? This year is different. This year has upended everything in one fell swoop: branches shut down, employees worked remotely, members lost jobs and income, the market demanded immediate options for contactless payments and transactions. While many felt this year has been a setback, we see this year as a great opportunity to redefine the future.

In the closing months of 2019, there were several reports released that touted the current and projected growth of the peer-to-peer (P2P) payment solutions market. Solutions like Zelle, Apple Pay, and Venmo were overwhelmingly increasing in adoption by consumers. There were high expectations and we have no doubt they were accurate. But, in November of last year, we had no idea what 2020 had in store.

Mobile payments are making person-to-person transactions incredibly simple and efficient. With a few clicks of an app, members can pitch in on a birthday gift, pay their landscaper, or check out at the drugstore. With the increased demand, there are plenty of providers popping up to meet it but not all are created equal. Some apps require you to hold funds in the app, while others link directly from bank account to bank account. While these payment channels may be highly convenient, it's important to educate your members on ways they can make sure their money goes where they want it and that they receive the money they are owed.

In The Wizard of Oz, a simple farm girl living her normal black and white life gets transported by force to a bright and colorful new world where things she never expected were possible. Most people who know the story would argue that the storm opened up something good for her that she would've missed out on without the shove. COVID-19 came in like a storm and the changes that we've been forced to make as a result may not all be bad. The last few months have pushed a lot of folks to try things they might never have before, like grocery delivery, Zoom calls, and digital payments. While these types of services may have once been ignored by some, that storm has pushed a lot of us into a new reality.

With a surge in demand and adoption of digital payments, including mobile person-to-person (P2P) payments, why are credit unions so ideally suited to benefit from this change? The keys can be found in the credit union difference.

In 2008, we saw the rise of the Gig Economy, an army of freelance workers trying to find whatever work they could during a recession when unemployment soared. It was expected to redefine the workforce and shake the foundations of traditional careers. Ultimately, the movement didn't hold out as expected, and the freelance work shifted more towards services work, like driving and delivery. In addition, the technology just wasn't there to drive mainstream adoption outside of major cities. But in 2020, the global pandemic, skyrocketing unemployment, and looming recession may have created the catalyst for an even broader gig economy to finally hit its stride. Simultaneously, the "socially distant" environment has shown options are needed to reduce contact while staying connected and working. This perfect storm of forced adoption, increased demand for gig work, and the need for contactless transactions - with seamless user experience - necessitates a responding change in the way we pay each other. Financial institutions (FI) need to get on board quick or they'll be left in the dust of their competitors. Enabling mobile payments, person-to-person (P2P), securely and simply is key.

Money makes the world go round, but where we once exchanged gold and silver for goods and services, we're now clicking and tapping our phones. Are we witnessing the death of cash? It is estimated that by the year 2024, non-cash transactions will nearly double from 2019. In addition, the number of people who made sure they always had cash on hand fell from 60% in 2015 to 53% in 2018. These trends lead to the same conclusion: we need to invest in smarter ways to exchange funds that meet the demands of the modern consumer, and digital banking is likely the answer.

While many credit unions have experienced the cost savings that come with having digital-only members, CUs are simultaneously sabotaging those perks by neglecting to treat these members with the care that an in-branch member would receive. This lack of personal attention is leaving new members less satisfied and therefore more likely to take their money elsewhere. Just because they are interacting with your branch in a different way, does not mean you should sacrifice the credit union difference.