Top 3 Challenges Your Credit Union is Facing [+ the Solutions]
The IT explosion of the post-2000 era has certainly created its fair share of opportunities for credit unions, particularly as it relates to leveraging technology to improve the member experience. Of course, it has also created a myriad of different challenges as well.
Fortunately, the same innovative spirit that brought us to this point can also help us overcome many of the challenges we face. With the right approach, each of the major challenges that your credit union encounters can be overcome.
In this article, we'll cover these challenges:
Challenge #1: Account Opening
Experts agree that account opening fraud is one of the most concerning trends facing credit unions today. Attackers will use personal information to open an account or even apply for a loan on behalf of the victim, all using data that they likely gleaned from sources like data breaches.
Thankfully, your credit union can use an identity decisioning platform to not only automate decisions for onboarding, but also include transaction monitoring as well. This helps automate identity and risk decisions for less fraud, fewer manual reviews, and better conversions across the board.
Challenge #2: Competition
Your credit union finds itself in a fiercely competitive arena, with established banks on one side and disruptive tech-powered startups on the other. Large financial institutions generally have competitive advantages in terms of not only scale but the number of available resources they have access to as well.
Your credit union does not need to outspend larger competitors; instead, your credit union needs to focus on what your competitors don't do, which is community outreach and personalization. Listen to your members and prioritize their needs. Care about the things they care about and give back to the community. By doing so, your credit union will create a welcoming member experience that is far more personal than most big banks could ever dream of.
Challenge #3: Cost-Savings and Member Experience
Due in part to the increased competition outlined above, budgets for credit unions are getting tighter all the time. This has led to the need to save money anywhere and everywhere--which some financial institutions take too far and allow it to harm the member experience as a result.
It's all about leveraging the right technology to work smarter, not harder. For example, ID authentication is a cost-effective way to increase security and offer members that personalized, easy experience they love. Validating and authenticating a member's identity is a seamless process, instilling a sense of trust and confidence without any unnecessary hassle. This also frees up the valuable time of your employees so they can focus on providing a better member experience.
Staying Ahead of Challenges
Obstacles will inevitably surface for your credit union. Potential issues are everywhere, and they will evolve alongside the ever-changing financial services industry.
This underlines the importance of staying up to date on all the latest pain points facing your credit union on a regular basis. The more you know about the situation itself, the easier it will be to find an innovative solution to mitigate that risk as much as possible--much to the benefit of both your credit union and its members alike.
Overcome Your Obstacles with FLEX
By providing core systems to credit unions for over 40 years, FLEX knows first-hand the challenges your credit union is facing. FLEX can help your credit union save costs, enhance member onboarding experience, and become a front runner with our many integrations.
One of these integrations is Alloy, an identity decisioning platform designed to mitigate risk from fraud-related concerns. Contact the team at FLEX today to further discuss details of this integration. Otherwise, click the button below to learn more about this integration.