In a lot of ways, the success of credit unions over the years can be attributed to their natural emphasis on innovation--particularly when compared to larger financial institutions.
When the experience offered by big banks grew cold and impersonal, credit unions went in the opposite direction, offering personalized services and a level of care that members just couldn't find elsewhere. Over the last few decades in particular, the same concept has been true when it comes to how credit unions are utilizing technology. Mobile and digital services have become a common part of their offerings.
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But at the same time, one must ask - when legacy core systems make it hard (or in some cases, outright impossible) to innovate, how can credit unions continue to modernize in a way that allows them to stay competitive? Thankfully, the opportunity to break new ground is still there and credit union digital account opening is just one example of how they can do it.
The Power of Digital Account Opening for Credit Unions
There was a time when something like digital account opening was reserved only for those large financial institutions out there with a significant amount of money to invest in ever-changing technology. Thankfully, solutions now exist that level the playing field, making it not just possible for credit unions to implement but also straightforward. There are core systems out there that have digital account opening built right in, allowing a credit union to hit the ground running immediately.
Of course, success to that end still depends on your credit union's ability to provide the fast, end-to-end digital experience that members crave. They don't like digital account opening simply because it's "new." They like it because it is faster and more efficient than the processes that they're used to. What formerly took days and an in-person trip to the bank can now be completed in minutes online.
But that also means your credit union needs to handle critical parts of the process like ID scanning and authentication with grace. Things like this are necessary to prevent fraud, but they also need to be implemented in a way that doesn't make the process take longer than it needs to.
According to one recent study, about 25% of all consumers say that they would vastly prefer to be able to open new accounts either online via a web browser or through some type of mobile application. However, their current financial institution doesn't offer that option at all. By embracing innovation and offering digital account opening, your credit union can immediately fill a need that people have and separate yourself from your larger competitors in one fell swoop. That is an excellent position to be in, especially with more competitors appearing all the time.
A Brighter Future Begins Now
We know--we make it sound easy, right? Just start offering digital account opening! For some credit unions, that's not a simple process to implement, especially if they're using a legacy core system or they work with multiple providers. Ideally, your credit union should use a core system that has the digital account opening process built right in (like FLEX).
But ultimately, digital account opening is just one of many examples that credit unions can follow to break new ground in terms of the quality experience they're creating for members. You should look at every part of your credit union's onboarding process with the same level of care and attention to detail to truly make the impact people expect. At FLEX, we've authored an eGuide that goes into more detail about precisely that. Click the button below to read it and get started!
