Digital and mobile banking have become an in-demand reality for virtually every demographic. According to the Digital Banking Survey in March 2021, survey respondents report they will continue to prefer the convenience of digital channels for transactional, simple activities, such as depositing checks, transferring funds, and paying bills. And this sentiment has huge implications for credit unions because it underscores that digital payment solutions are here to stay. Even so, there are several common myths that may hinder credit unions from fully embracing digitization. Let's take a closer look at some of the more popular myths to uncover the truth.
Myth: Credit Unions Offer Excellent Rates... And That's Enough
According to the 2021 Digital Banking Report, digital banking transformation and improving the customer experience were top priorities for 75% and 51% of financial institutions respectively. However, Ernst and Young research discovered excellent customer experience as the top driver for customer satisfaction, with financial institution fees and rates coming in a close second. These key metrics highlight the importance of creating remarkable experiences through digital transactions.
Simply put, attractive interest rates alone are no longer sufficient for sustaining and growing membership. With members preferring exceptional digital experiences over attractive rates, credit unions—fortunately—are in a unique position to offer both. To meet the rising watermark, credit unions must undergo digital transformation to offer members the innovative payment solutions and services they desire. When a seamless digital experience and easy-to-use interface are paired with the already-existing excellent member service, credit unions stand to further differentiate themselves from the field.
Myth: Digital Transformation Leaves Out the Human Element
Because credit unions are notorious for the human experience, it's understandable that many may be reluctant to embrace digital transformation. One misconception is that digitization removes the valued human element out of the picture. However, few things can be farther from the truth.
The best and most effective digital payments are engineered around the member. And the only way to truly tailor your offering is with valuable intel gained from credit union staff about the emerging needs and preferences of members. Simply put, when technology is spiced up by a touch of humanity, it will strike the perfect balance to deliver members the remarkable experiences they deserve.
Myth: Digital Payments Will Hinder Member Engagement
Another common misconception many credit unions harbor is that digital payment solutions hinder interactions between the institution and members. Again, this is an untruth. With digital payments and digitization implemented, communication is enhanced through additional channels, such as social media, email, text, and other modes for the convenience of members. More channels of communication increase the likelihood members will reach out and engage to experience your world-class member service. Members will no longer have to rely solely on branch transactions whenever a financial query pops up or payment needs to be made.
Myth: Digital Transformation Involves Simply Flipping a Switch
Contrary to popular belief, implementing digital payments involves much more than technology. Instead, successful implementation of digital payments and digitization must occur at a cultural level, especially for credit unions accustomed to more traditional payment methods. Because of this, credit unions must ensure all employees are properly educated on why and how digitization can empower them to best meet the needs of those they serve. Often, this involves a shift in culture. Whatever it takes, it's important your people are invested in digital transformation for the long-term success of the project.
Myth: There Is No Way to Keep Up with Digital Payment Technology
One thing is for certain: payment technology has proven to evolve at the speed of business and light. As such, it's important your credit union has the infrastructure and flexibility to accommodate future payment methods. FLEX offers state-of-the-art core functionality that empowers credit unions to successfully offer today's and tomorrow's payment solution with efficiency and ease. Check out our Digital Account Services eBook to learn more.