One of the topics of recent conversation in credit union technology has revolved around the impact Millennials are having on the financial industry. Within the next few years, this tech-savvy group will represent close to 75% of the workforce and is becoming an influential part of the financial world. Keeping pace with the ever-changing face of credit union technology is vital to attracting Millennial members. The credit union industry has had to evolve to be able to offer the tools and technology members demand and what once was thought of as taboo in the industry, credit union APIs are now crucial to satisfying current technology needs and staying relevant. A core data processing system with a robust API allows for credit union open architecture so that you can offer the best-of-breed products that might otherwise be unavailable.
Being able to offer up-to-date technology and engage with the latest applications is important to staying at the forefront of your competition. For example, industry trends are showing that more and more people, many of them Millennials, are using non-traditional alternative banking tools. Alternative payment options such as Venmo, PayPal, and Applepay are just some of these third-party applications to offer this. FICO recently reported that an estimated 52% of Millennials and 27% of Baby Boomers are using these forms of payment. Having the ability to engage third parties via an API, and being able to offer additional options to your members is a great reason to seek a core processor with open architecture.
Better Use of Resources
In business, it's always best practice to focus on your primary core competencies as a more efficient and lean way to operate. While offering the latest and greatest technology can be key to obtaining new members and satisfying existing members, it is not always economically feasible to develop, fund, implement and support all the latest technology, nor is it an effective use of your resources. When your core allows for the integration of third-party applications, your product offering can meet the changing demands of tech-savvy members with minimal effort and resources on your side.
Who doesn't want to be the best? You don't see many NBA teams cheering when they lose the NBA Finals to bring home a second place title. Likewise, your credit union marketing signage doesn't read "We want to be your second choice in credit unions," nor "Our mobile banking app is almost as good as the competition - but not quite." By utilizing open architecture capabilities in your credit union core, you are able to offer additional solutions by working with best of breed providers and innovators, whose sole focus is that service or product.
Credit union open architecture is inherent to offering the best options and flexibility to your members. It enables you to incorporate the newest of technologies through on-line, mobile and other channels. It will allow your credit union to build a bridge and a relationship with third party vendors by utilizing API technology. Being able to offer these cutting edge tools 24/7 will keep you at the forefront of credit union technology.