In order to stay relevant in today's fintech world, you must have all the latest member service features in your digital arsenal. Staying in touch with tech trends and being aware of what's being developed on the horizon is important, as is being able to implement it with the rest of your technology when it's market ready. It's imperative to find ways to stay one step ahead of your competition and differentiate yourself from the rest. However, in a monopolized financial industry where the principle of economies of scale is alive and well, it's difficult for small credit unions to meet the price tag of the tech that will make them competitive.
Smaller credit unions are often at a disadvantage as they do not have the same ability to invest in quality technology like their larger counterparts - which makes their choice in tech vendors that much important. Choosing the wrong core processor can be detrimental, not to mention a drain on the bottom line. And with limited resources and personnel, it's vital they leverage technology that can automate operational processes to maximize their efforts, creating credit union efficiencies. By keeping operational costs lean and saving money, revenue is freed up to be reinvested back into the credit union and used to attract new members.
Check out this case study exploring the success a small credit union (Tri-Town Teachers FCU) had by making the most of its technology is included here. It illustrates the benefits, from an operations perspective, of partnering with the right tech provider and how it can affect your bottom line.
Keeping up with industry trends and providing the latest fintech to members can be costly - especially for smaller credit unions with limited resources. Here are a few ways to bring down costs and keep pace with the rapidly changing technology:
- Choose Wisely. Partner with a core processor that offers the complete package, cutting down on the need for third-parties and time spent managing more relationships. A credit union out of a box, so to speak. In doing so, credit unions can keep many of their operations under one roof and simplify their life. However, be sure the comprehensive vendor you go with has a development roadmap outlining continual improvement in order to offer competitive services to your members as time goes on.
- Weed the Garden. Review all products and services you are currently paying for and analyze the value and ROI they are yielding. You may find that there are several items implemented that the credit union is not using, is a money pit or provides little value to members compared to required investment.
- Time is Money. Reach out to your credit union software provider and find out what operations can be automated that are currently not. By automating formerly manual processes, your staff will have time to work on other projects that might otherwise be ignored. The goal is never to eliminate staff, it is to position employees where they can make decisions and provide service that computers and bots cannot.