{"id":23724,"date":"2022-03-07T09:56:43","date_gmt":"2022-03-07T04:26:43","guid":{"rendered":"https:\/\/blog.aspiresys.com\/?p=23724"},"modified":"2025-05-13T18:50:14","modified_gmt":"2025-05-13T18:50:14","slug":"where-are-credit-unions-and-lending-institutions-going-wrong-in-their-digital-journey","status":"publish","type":"post","link":"https:\/\/www.aspiresys.com\/blog\/banking-financial-services\/digital-transformation-in-banking\/where-are-credit-unions-and-lending-institutions-going-wrong-in-their-digital-journey\/","title":{"rendered":"Where are credit unions and lending institutions going wrong in their digital journey"},"content":{"rendered":"<p><span data-contrast=\"auto\">Financial service providers want to be digital, but they&#8217;re having trouble getting there, or even getting started.\u00a0 They are focusing heavily on conventional IT and surface-level components of digital strategy.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Both are vital. However, we are seeing a lot less work put into relationship models; thinking about how to truly embrace and incorporate dynamism and dynamic road planning in processes and organizational culture.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">According to the FIS PACE Bank Executive Study, just <\/span><b><span data-contrast=\"auto\">38%<\/span><\/b><span data-contrast=\"auto\"> of credit unions said digital transformation was highly essential. Surprisingly, <\/span><b><span data-contrast=\"auto\">28%<\/span><\/b><span data-contrast=\"auto\"> reported overpaying on digital projects. The lowest number across bank types is among the credit unions, according to the study.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Beyond financial services, we are witnessing a fundamental transformation, which is true for all organizations of all sizes and all industries. We are witnessing top businesses go from &#8216;<\/span><b><span data-contrast=\"auto\">Customer Aware<\/span><\/b><span data-contrast=\"auto\">&#8216; to <\/span><b><span data-contrast=\"auto\">&#8216;Customer Led<\/span><\/b><span data-contrast=\"auto\">,&#8217; from &#8216;<\/span><b><span data-contrast=\"auto\">Data-Rich<\/span><\/b><span data-contrast=\"auto\">&#8216; to &#8216;<\/span><b><span data-contrast=\"auto\">Insights-Driven<\/span><\/b><span data-contrast=\"auto\">,&#8217; from &#8216;<\/span><b><span data-contrast=\"auto\">Perfect&#8217; to &#8216;Fast<\/span><\/b><span data-contrast=\"auto\">,&#8217; and from &#8216;<\/span><b><span data-contrast=\"auto\">Siloed&#8217; to &#8216;Connected.<\/span><\/b><span data-contrast=\"auto\">&#8216;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Firms must transition from a siloed structure to a linked, far more flexible, often cross-functional, and collaborative structure that allows for dynamism. Dynamism in this context refers to a company&#8217;s ability to adapt at a rapid pace and with a high degree of consistency.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Leading financial institutions, <a href=\"https:\/\/ter.li\/sb1d9q\" target=\"_blank\" rel=\"noopener\">payment providers<\/a>, and banking providers are reconsidering their brand connections. It is imperative to be extremely clear, and to have a clear vision of the function you would like play in your customers&#8217; life in the future.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h3 aria-level=\"2\"><b><span data-contrast=\"none\">Macro trends shaping the future of Financial Services<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:40,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h3>\n<ul>\n<li><b><span data-contrast=\"auto\">Accelerating Consolidation and the Drive for Scale<\/span><\/b><span data-contrast=\"auto\"> \u2013 Scale economics are favored in the financial services business, and industry consolidation is accelerating. Instead of aiming to be unique in approach, there are opportunities to encourage more collaboration.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Unprecedented Advances in Technology Adoption and Innovation<\/span><\/b><span data-contrast=\"auto\"> \u2013 Technology and its improvements are affecting not only the corporate world, but also how consumers perceive and use financial services.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Changes in Consumer Behavior, Attitudes, and Expectations<\/span><\/b><span data-contrast=\"auto\"> \u2013 The key differentiator in the industry is member experience, which incorporates all aspects of how consumers conduct their financial life. Customers desire greater convenience, simplicity, instant gratification, empathy, and personalization.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">New Waves of Competition from Large Scale Incumbents and New Entrants<\/span><\/b><span data-contrast=\"auto\"> \u2013 Many of the new entrants follow a straightforward pattern. They are only concerned with reducing the friction that often arises in how customers obtain financial services. New entrants are pushing the delivery of Digital First Experiences, while incumbents have embraced &#8216;High Tech&#8217; and &#8216;High Touch&#8217;.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Demographic Shifts and the Rise of Digital Natives<\/span><\/b><span data-contrast=\"auto\"> \u2013 Unprecedented global demographic transitions will have far-reaching consequences for member retention and acquisition, as well as talent management. Younger consumers entering the financial services business for the first time almost always expect a digital-first experience.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<h3><strong>\u00a0Stepping up to the plate with Digital Transformation\u00a0<\/strong><\/h3>\n<p><span data-contrast=\"auto\"><a href=\"https:\/\/ter.li\/qsuc8z\" target=\"_blank\" rel=\"noopener\">Digital Transformation<\/a> is a chance to reinvent how you bring together your people, technology, data, and business processes to generate value for the members you are attempting to serve and achieve a competitive edge.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Culture and Mindset<\/span><\/b><span data-contrast=\"auto\"> \u2013 Creating a member first culture which not only puts the customer at the heart of everything but also embraces and enables innovation and technological changes.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Financial Strength and Scale<\/span><\/b><span data-contrast=\"auto\"> \u2013 Scale economics have ever-increasing importance in the financial industry. Scale which implies the ability to finance strategic investments will be a vital factor in being able to compete and be relevant.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Efficiency and Effectiveness<\/span><\/b><span data-contrast=\"auto\"> \u2013 Credit Unions need to be able to scale their technology capabilities to allow members increasing levels of self-service and to improve internal operations and efficiencies.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Organization and Talent<\/span><\/b><span data-contrast=\"auto\"> \u2013 Credit Unions must develop a new type of workforce focused on creating exceptional customer experiences enabled by new work practices and capabilities (Analytics, AI etc.).<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Data &amp; Analytics<\/span><\/b><span data-contrast=\"auto\"> \u2013 Serving the customers begins with data, and how it is stored and managed will be a pivotal success factor. New technologies such as analytics and Machine learning will provide much deeper understanding of member needs, behaviors, and preferences.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h3 aria-level=\"2\"><b><span data-contrast=\"none\">Digitization of Credit Union Systems and Lending Institutions<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:40,&quot;335559739&quot;:0,&quot;335559740&quot;:480}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">The fundamental level of digitization is providing key services via internet and mobile channels. It must be clear, easy to comprehend, and intuitive, with a minimum of clicks required to obtain what the user needs.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Many small credit unions struggle to afford digitalization. As a result, they&#8217;ve created shared platforms so that individual credit unions don&#8217;t have to invest in redundant hardware and software to provide these digital channels.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Financial institutions create more digital portals for their activities because of digitalization, which introduces increased risk. They oversee safeguarding the members&#8217; identities and data, as well as providing cybersecurity.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Credit Unions in many countries are employing shared platforms to manage cyber security solutions as well as regulatory compliance. The system of cooperative institutions maintains a large amount of data, which provides information about its members&#8217; activity, transaction history, and preferences. Analysis of this data can help them improve their products, respond to member service criticism, and recommend better financial health choices to members.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">For instance, for our customer, a well-known credit union bank in Canada, serving over 120,000 customers in the province of Ontario, we proposed digital<\/span><b><span data-contrast=\"auto\"> deployment of their <a href=\"https:\/\/ter.li\/ymu40u\" target=\"_blank\" rel=\"noopener\">retail banking platform<\/a><\/span><\/b><span data-contrast=\"auto\"> and <\/span><a href=\"https:\/\/ter.li\/lkcbax\" target=\"_blank\" rel=\"noopener\"><b><span data-contrast=\"auto\">customer onboarding process<\/span><\/b><\/a><span data-contrast=\"auto\">.\u00a0 This resulted in a <\/span><b><span data-contrast=\"auto\">288x<\/span><\/b><span data-contrast=\"auto\"> reduction in processing time.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">It should be emphasized that online loan processing and approval, as well as mobile deposit service and mobile loan processing, are significant membership growth drivers for credit unions.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h3 aria-level=\"2\"><b><span data-contrast=\"none\">Reimagining Credit Unions and Lending Institutions in the Digital Age<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:40,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Credit Unions and Lending Institutions should use technology as an enabler to strengthen their strategies. The &#8220;<\/span><a href=\"https:\/\/ter.li\/sc85s9\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Bank in a Digital Box<\/span><\/a><span data-contrast=\"auto\">&#8221; addresses the needs of each customer segment with an MVP &amp; Add-on approach, allowing you to seamlessly start the business and gradually transform it based on priorities.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">It enables Credit Unions and lending institutions to concentrate on their vision and strategy, viewing digital transformation as an opportunity rather than a necessity.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Lending institutions and Credit Unions confront challenges as expenses continue to rise, regulatory burdens increase, and as uncertain economic climate continues to erode profitability.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">For these institutions, to capitalize on the growing demand for commercial lending, they must transform their lending processes by streamlining processes and leveraging technology, particularly advanced digital solutions, to focus attention on dark data to reduce risk, accelerate decision-making, reimagine customer experiences, and improve compliance for real business impact.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Financial service providers want to be digital, but they&#8217;re having trouble getting there, or even getting started.\u00a0 They are focusing&#8230;<\/p>\n","protected":false},"author":20,"featured_media":36338,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4852],"tags":[3526,3117,660,3527,3528,3529],"practice_industry":[4515],"coauthors":[283],"class_list":["post-23724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-transformation-in-banking","tag-credit-union-systems","tag-customer-onboarding-process","tag-digital-banking-transformation","tag-leading-financial-institutions","tag-lending-institutions","tag-retail-banking-platform","practice_industry-banking-financial-services"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/posts\/23724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/comments?post=23724"}],"version-history":[{"count":1,"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/posts\/23724\/revisions"}],"predecessor-version":[{"id":36340,"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/posts\/23724\/revisions\/36340"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/media\/36338"}],"wp:attachment":[{"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/media?parent=23724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/categories?post=23724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/tags?post=23724"},{"taxonomy":"practice_industry","embeddable":true,"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/practice_industry?post=23724"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.aspiresys.com\/blog\/wp-json\/wp\/v2\/coauthors?post=23724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}