The growing demand for digital banking services and the rise of fintech companies into the banking space means that credit unions (CUs) have to change the way they do business in order to stay competitive. Members now want access to a variety of online banking services, and the credit unions that fail to provide them likely won’t be around too much longer.

In 2020, the coronavirus forced credit unions to shut their doors and rethink how they do business. With branches closed and the lockdown in full effect, it became clear that members wanted digital solutions to handle all their banking transactions. Suddenly mobile banking, digital wallets and digital lending platforms became crucial for the survival of credit unions.

We live in a time of technological wonder and change. Yet, many of today’s companies often pivot their talking points away from internal development, thus obfuscating the fundamental question and primary mission of any core: “How are you updating your core technology to keep my credit union relevant and competitive?” 

Choosing to switch your credit union core software provider is a huge decision. After all, credit union core technology is one of the most critical components to any successful credit union and making the wrong decision could hurt your business for years to come. Another big decision comes when you’ve narrowed down your list to just two core providers, and you must choose which vendor to partner with.

The onset of COVID-19 left many questions in credit unions' minds. FLEX had nine credit unions scheduled for conversion between March - August 2020. Of these nine credit unions, six required remote/virtual implementations based on State mandates for travel and corresponding quarantine. Virtual implementations were successfully performed by FLEX training teams in New Mexico, Georgia, Wisconsin, Pennsylvania, New York and Virginia. When some core processors were working with credit unions to postpone or reschedule their core conversion, FLEX was working with staff and credit unions to modify implementation and training procedures. Necessity is the mother of invention. Understanding that physical proximity is becoming increasingly unnecessary (although it may still be preferred), FLEX began implementing remote conversion plans. Here is a summary of the takeaways of our experiences.

As 2020 began we, at FLEX Credit Union Technology, were not predicting a health crisis. In fact, a health pandemic and its impact was not even a conscious thought. As we look back on three quarters of business, we are amazed at how unfamiliar, yet normal 2020 has felt. We have always pointed to the virtue of being able to pivot quickly as a company and deliver technologies that meet our credit union customer expectations and their members needs. With over 260 credit union customers running FLEX in 47 states, our exposure and perspective to the health crisis has been deep and layered.

Members want it all ways. They want best-in-class, personalized and fast service in branch, and they prefer only to come inside the branch if they feel like it. If they are using DIY services, they want them to be user-friendly, intuitive, and efficient. New technology is flowing out all around us in everything we do, and it's reinventing the way we interact with the world and each other. If your credit union can't provide the services your members want today and tomorrow, they can find one that will with a few clicks of their smartphone. Don't let your core be the reason you can't keep up with the pace of innovation.

It's a bird! It's a plane! It's the ability to give your members the power to control their financial fate with convenient access no matter where they are! While it may not be a super power you've heard of before, it is one that will give your credit union the ability to serve your members leaps and bounds ahead of others while staying competitive with powerhouse financial institutions. Here are a few of the super powers your credit union can gain by using a powerful core processor featuring an open application interface.

The greatest differentiator for a credit union versus a bank is the connection, the personal touch, the fabled "credit union difference." A credit union is a local business, invested in the community and its people. In return, its members are invested in the credit union, too. They feel recognized when they come in, like Norm walking into Cheers. But, as people are trying to limit in-person contact, branch visits are down dramatically. And those members that do come in expect to receive service that aligns with their expectations of high-touch personalization. So, how can a credit union create that personal connection with or without actually being in person? By leveraging the right technology.

Remote access is no longer a nice-to-have, it's a must-have. Credit union members from all generations are increasingly smartphone reliant and the products and services available to them need to integrate into that world. Where remote deposit capture was once the sparkling gem of new tech, it's old hat now. Credit unions looking to provide their members even the most basic services need to offer remote and highly personalized banking services in order to stay competitive. Utilizing a modern, state-of-the-art core processor is the first step.