When it comes to operating a modern-day credit union, one critical idea to understand is that any investment in technology that reduces costs needs to simplify efficiency at the exact same time. Not only is this crucial for keeping up with an ever-changing marketplace, but it also assists with long-term stability as well.

A credit union can't continue to do what it's always done. In the modern world we live in: member expectations change all the time. This, coupled with increased competition, cause fluctuations in the financial industry on a regular basis. Therefore, for credit unions to succeed within this context, they need to remain efficient enough to pivot at a moment's notice.

The expectations of credit union members are constantly evolving, and it's up to savvy organizations to evolve right along with them. For most, the careful application of the right type of technology is how they do it.

Digital transformation — when done right — can transform your credit union's ability to stand out in a crowded market while optimizing operations and improving the overall member experience. But when it's done wrong, the possibilities are endless — and not in a good way. For example, Hewlett Packard's digital transformation in 2004 was slated to cost $160 million. But because of several failures, it cost them nearly five times that amount.

For credit unions, undergoing a digital transformation to offer better and more personalized services to members is no longer a recommendation. It is a requirement.

Because of the fast-paced digital world that we're all living in, many credit unions can find it difficult to keep up with ever-changing member expectations.

If you had to make a list of some of the most invaluable assets that credit unions have, loyalty is undoubtedly right at the top.

Today, credit union members and consumers have more ways than ever to pay for goods and services, including Buy Now Pay Later, automated clearing houses, mobile wallets, and peer-to-peer payments. At the same time, payment methods are getting smarter.

According to one recent study, the annual inflation rate in the United States grew to 9.1% by June 2022 - the highest rate since 1981. As a result, how people shop for things like credit cards is changing. This is especially true as not just inflation rises, but the prices of fuel and other essential items do as well.

One thing is for certain—your credit union members have options; and they are not afraid to use them. For instance, Accenture reports credit unions and banks lose up to 25% of new customers during the first year. Failing to master this type of customer churn can easily put a healthy credit union in a crunch, considering the average new credit union member costs $442.