The pace of change at credit unions is quickening. That's the central message from Doug Brown, senior vice president and GM of Digital Banking at NCR.
In a wide ranging conversation, Brown explores five key trends:
* Channels quickly collapsed in 2020 as digital and physical experiences merged; this is only expected to accelerate next year. Experiences were ‘de-channeled’ as physical and digital experiences converged.
Banks and credit unions are now operating in a more dynamic, distributed model, causing de-channeling to occur at a rate much faster than initially expected, in some cases three or more years ahead.
* Branch strategy will shift to accommodate the evolution of self-service. Branches will remain relevant, but they must adapt to become part of the larger ecosystem. There will be a continued evolution of self-service, one that includes leveraging technology to provide touchless alternatives and increased automation to enable continued access to cash.
*The ATM will remain a critical touchpoint and utilize expanded functionality. ATMs are not going away. They are just getting smarter, more capable, and more fully digital.
* An increased focus on end-to-end delivery and management. Consumer behaviors will be dynamic into 2021 and beyond. Being able to quickly modify digital experiences and business structures to accommodate customer needs and provide a consistent user experience regardless of channel will be a competitive imperative moving forward. This is all part of the profound shift toward digital first banking.
* Small business earns bigger focus. The pandemic disproportionately impacted small businesses and gig economy workers; they faced a drastic liquidity crisis. Small and micro businesses have experienced a heightened need for financial advice and guidance. This year, we saw many community and large regional banks step up and help businesses through PPP loans, even when the national institutions elected not to. This has caused the smaller and mid-tier institutions to win market share and gain new business accounts, a significant opportunity.
Listen up, Brown in this podcast offers a vivid picture of an existing credit union experience that blends digital with legacy banking.
In this podcast, mention is made of the new digital bank, Lili. Story here.
A related podcast is with Octavio Marquez, a senior VP ar Diebold Nixdorf. Listen here.
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Find out more about CU2.0 and the digital transformation of credit unions here. It's a journey every credit union needs to take. Pronto