Each year, our lives become more and more digitally focused--to the point where most people spend the majority of their days interacting with some form of technology. Often, this happens in ways that would have seemed odd or even unthinkable in the past.

The credit union industry has always been committed to innovation. This idea is especially important in the fast-paced, tech-driven modern world that we're living in. In an effort to not only maintain growth but to accelerate it as much as possible, credit unions need to embrace new solutions like digital payments wherever possible.

The past two years have seen strong credit union industry growth, which has been attributed to pent-up demand, in what has been called a rebounding economy. NCUA reported loan growth of 14.7 percent, membership growth of 8.1 percent, and net worth increasing at 13.9 percent in Q1 2021. This was met by digital transformation initiatives across many credit unions in an effort to meet member expectations in a transitioning consumer economy. Changes in card technologies, enhancements to digital wallet capabilities, and an evolving payments landscape have driven focus and investment over this time and heading into 2023.

If you had to make a list of all the qualities that are essential to the success of a modern credit union, its technology stack would undoubtedly be right at the top.

A successful credit union is one that steadily grows based on good member acquisition and retention practices. Not only will achieving this help your credit union expand it will also help weather economic downturns by having a strongly-developed membership base that supports your services.

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.

The modern banking landscape continues to move ever deeper towards mobile banking apps, purely digital financial services, and frictionless services that require less physical presence by customers. The pandemic put even more focus than before on delivering access to financial services of all kinds without obligating an in-person visit.

By now, the future direction of financial services has been charted and well documented — it's all about digital transformation. While the direction of the industry is no surprise, the speed at which this runaway freight train is traveling has left many industry insiders concerned, to say the least. According to a 2019 survey, 81% of banking CEOs reported they were concerned about the speed of technological change. And this was before the COVID-19 pandemic exposed universal shortcomings.

A lot has changed for credit unions within the past two years. Many have evolved their delivery models to support more digital, remote communications while still aspiring to offer a special, personal member experience. However, achieving this level of digital prowess takes a strategy that can quickly and easily adjust to uphold specific undertakings, like paycheck protection, skip-a-pay programs, and contactless transactions. Members still require personal connection even while online and those who aren't already acclimated to digital channels need more education, connection, and security understanding to get comfortable. So, what else has changed in the credit union world, and what does the future hold?