Digital and mobile banking have become an in-demand reality for virtually every demographic. According to the Digital Banking Survey in March 2021, survey respondents report they will continue to prefer the convenience of digital channels for transactional, simple activities, such as depositing checks, transferring funds, and paying bills. And this sentiment has huge implications for credit unions because it underscores that digital payment solutions are here to stay. Even so, there are several common myths that may hinder credit unions from fully embracing digitization. Let's take a closer look at some of the more popular myths to uncover the truth.

The term "digital wallet" has been floating around for the past few years. This technology doesn't require a physical credit or debit card and lets consumers pay for products and services using card information stored in a device such as a smartphone or a computer. In fact, according to a 2021 survey, around 150 million Americans have used a digital wallet at least once. Will this intangible payment method put credit cards out of commission? And what does this mean for your credit union?

Traditionally, credit unions haven't been considered digital innovators. Instead, credit unions are notorious for delivering a personable, in-person, in-branch experience to sustain member loyalty and build trust.

Today, however, everything is different. As digital-only fintech firms and major banks pour money into technology to apply external pressure, it's imperative for credit unions to develop value propositions around innovation. While credit unions may not be first adopters or innovators (in the traditional sense), they are fast followers. Let's take a closer look at three top emerging payment trends credit unions should be following and paying close attention to.

The current success of your credit union is directly related to your credit union's core technology. Few scenarios have made that clearer than the COVID-19 pandemic. Specifically, credit unions with the right core technology were able to quickly adjust, go digital, and deliver the solutions required to meet member needs.

Open banking will support credit unions that possess a certain digital capacity. The most successful credit unions (CUs) are ones that utilize member data and provide real-time information, organized workflows, notifications, and alerts. Members seek convenience above all, and so these features should offer just that. Here are a few ways CU staff can increase the value of your services with open banking APIs.

Though face-to-face interactions have always been more personal, credit union members today are leaning more towards digital interactions. Whether it's due to the pandemic or advances in technology, there is no one clear-cut cause. But it's the reality credit unions need to face and accept. For example, a recent study showed that between December 2020 and May 2021, 95% of Gen Z used mobile banking. And according to the Credit Union Journal, "70% of likely bank account applicants would prefer to submit a digital application." So whatever type of banking a credit union member is interested in, it's important for them to be able to conduct their business online if they so desire. Application programming interfaces (APIs) can help make that possible.

In today's digital age, virtually all credit unions face one glaring concern: how to maintain the valuable face-to-face relationship-based banking that members have come to expect while offering the cutting-edge digital tools younger members demand. In addition to finding the right mix, the capital investment required to make this transition has often helped justify kicking the proverbial can down the road. That was until COVID-19 escalated digital transformation from a nice-to-have into a must-have. Fortunately, Eastern Utah Community Credit Union (EUCCU) already had the plans and groundwork in place to seamlessly make the transition. 

Digital transformation is no longer a buzzword that all the cool financial institutions are using. Instead, COVID-19 has escalated it from a nice-to-have, wishful thinking strategy into a must-have for credit unions to remain competitive. At the very heart of any effective digital transformation is a metamorphosis that transforms how your credit union interacts with members. In the act of doing so, it should modernize and simplify processes while generating efficiencies and improving KPIs, such as the credit union's efficiency ratio. While COVID-19 has escalated the importance of digital transformation, it has also highlighted key problems credit unions face.

Although the pandemic made it clear financial institutions were all in the same storm, each credit union's boat was entirely different. For instance, some credit unions have been able to capitalize on rapid digitization, while others may not have been as fortunate. In either case, it's important to learn from the lessons doled out over the last two years and use them to strategically plan for the future. Let's look at three New Year's Resolutions credit unions can use to drive growth in 2022 and beyond.

Your credit union may have figured out how to serve Millennials, but there is another generation to understand: Gen Z. Although the two generations look similar, their interests, tendencies, and money-spending habits are quite different. So, how can your credit union stay ahead of the game and offer the most convenient and appealing services to the next round of consumers? These potential members are the future, and credit unions would be wise to learn how best to cater to this generation.