How to Accelerate Digital Transformation in Credit Unions and Enhance Member Experience

by | Jul 28, 2021

To Achieve Digital Transformation Success in Credit Unions, Member Experience Must Be Enhanced

Digital transformation in credit unions has become a higher priority due to several driving forces. Online services from both traditional and digital-only banks have become accessible to consumers, regardless of physical location. Consumer expectations have leapt ahead based on their experience of digital communication and exposure to online services from other sectors. And the COVID-19 pandemic accelerated the need for digital methods in order to reach and assist members.

For credit unions, digital transformation is important, but it must be done in the context of the credit union’s principal function, which is to provide high-touch, personalized financial services to its members and local community. If a credit union’s digital transformation efforts fail to maintain or improve the member experience it has provided in the past, there is a real risk of member dissatisfaction and even attrition.

Common roadblocks to digital transformation in credit unions

First, let’s look at the challenges credit unions face when embarking on a digital transformation plan.

The 3 most common roadblocks to digital transformation in credit unions are:

  • Dealing with legacy technologies, including core systems – most credit unions do not have the resources, nor the inclination, to replace core systems, or to embark on lengthy integration projects.
  • Lack of IT budget and/or skilled resources – credit unions typically operate with tight IT budgets and small teams. They don’t always have the luxury of specialist skills needed to identify, integrate, and maintain multiple digital platforms.
  • Concerns around data security and regulatory compliance – with data protection laws becoming stricter around the globe, and consumers becoming ever more aware of privacy, any digital transformation project must have data security and regulatory compliance at its core.

Fortunately, none of these are permanent roadblocks to digital transformation.

How digital transformation in credit unions impacts member experience

Member experience refers to the sum of many things – how a member feels about the service they receive, their response to every interaction with their credit union and even their perception of what the credit union is doing for the community.

For digital transformation to be considered successful, the member experience (and employee experience) must be enhanced. This cannot be achieved by simply digitalizing previously analog processes. Digital transformation requires a change in strategic thinking that puts member experience at the core of all investment decisions.

Digital transformation gives the credit union the opportunity to bridge member experiences across all products and services, creating a consistent experience no matter how, where or when the member engages. The ultimate objective is to increase member engagement and retention and nurture a loyal member base.

How outsourcing accelerates digital transformation in credit unions

Many of the digital transformation challenges credit unions face can be resolved by outsourcing key technologies that will fast track the process.

Take member communication as an example. Outsourcing member communication to an experienced vendor with a comprehensive customer communications management platform, can help a credit union navigate through the common roadblocks quickly and efficiently.

“Digital transformation can be achieved by harnessing best of breed platforms to the core technology stack without requiring a massive upgrade or replacement.”

Gone are the days where massive integration projects were the only way to launch new functionality or radically change the member experience. Nowadays, credit unions have several options, such as cloud platforms and APIs (Application Programming Interfaces), that help to leverage available technology to drive digital transformation.

With the advent of Software as a Service, credit unions can onboard new capabilities and extend their IT teams without massive capital outlay or building the skills inhouse. What’s more, outsourcing means that data security and regulatory compliance are managed by experts in those fields.

Bring in a partner with proven experience in helping credit unions transform digitally

It’s vital to partner with a vendor that has proven experience in helping credit unions transform digitally, and the use cases to prove it.  Doxim’s platform and infrastructure enables a fast, low investment opportunity to leverage communications management to enhance member experience as quickly as possible.

Credit unions can empower their business users to do what they do best. Our industry-focused platform offers self-service capabilities, wherever appropriate. Your users will have the tools that enable them to be agile in response to market changes, while your organization can grow your base and maintain the intimacy and personalized service your members expect.

With our CCM expertise across digital and print, Doxim keeps channels connected and eliminates the need to manage disparate systems and multiple vendors. Doxim is regularly audited and maintains the strictest compliance levels per the requirements of multiple highly regulated industries.

3. Expansion of digital products

As banking customer behavior shifts, banks must move with the times, or risk getting left behind. Many banks today are exploring the power and potential of open banking, which can allow them to offer more innovative products and services to their customers, as well as to better compete with fintech companies and other non-traditional financial service providers.

As you shift your banking business model to reach new segments or provide an enhanced array of services, communication becomes even more pivotal to your success. After all, if your customers don’t know which new services they qualify for, or how those services will help them meet their goals, then they are unlikely to explore them further. CCM technology can be leveraged here to provide personalized on-statement messaging that directs customers to the right products and services, as well as 1:1 personalized “explainer” videos to help them get started.

Adjusting your bank’s priorities to thrive in 2023

In an era of constant change, the key to successfully transforming your bank’s business model will be to stay attuned to the changing needs and preferences of customers, and to be open to exploring new opportunities and technologies that can help your FI stay competitive and relevant. But these new opportunities are doomed to fail if you do not clearly communicate their benefits and make it simple for customers to access them.

That is why transforming your customer communication strategy is the best first step to broader digital transformation. By updating your approach to communications to meet omnichannel customer needs, you also position your bank to communicate the benefits of changes in your broader organization, like new or enhanced products and services. The pace of change in banking has never been brisker – but with the right strategic approach to these changes, the future is bright.

Investing in a modern customer communication management and engagement platform is an essential part modernizing your banking strategy, as it can provide the personalized digital experiences that will keep your bank or credit union ahead of the competition. It helps provide a great customer experience, and builds rich relationships, which in turn results in customers for life and a competitive advantage in the rapidly evolving financial marketplace.

How Doxim can address the banking customer communications trends identified and help future-proof your digital banking strategy

banking customer communications trends

Doxim’s experienced consultants and omnichannel platform can help transform your customer experience in many ways, including:

  • Gathering and utilizing customer data to continually improve the personalization of communications.
  • Building trust with customers via communication (via print, PDF, HTML, email, text, and online interactive experiences).
  • Leveraging interactive video to drive personalized digital customer experiences, such as interactive statements, bills, or reports, that offer visual engagement and real-time interactivity
  • Putting customer data, including customer statements, at the fingertips of your service representatives for immediate and personal service.
  • Making a meaningful connection with value-added content, like information about philanthropic activities, on customer statements.

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