The bar for innovation in credit unions (CU) is higher than ever.
CU members in the United States have gone online to banking and transact, and most have no intentions of getting back to personal banking as it was. The result is an unprecedented need for innovative, easy-to-use digital banking options that match members’ new online banking habits as the importance of physical branches wanes.
Members are 17 percent less inclined to decide where to do banking by location than they were two years ago, which is indeed a sign of thatCUs need to invest in digital skills. But are the CUs facing the situation and delivering the digital innovations that their members need and expect?
This is just one of the questions PYMNTS is working with power adapterpublished in the 2021 edition of the Credit union innovation study. Between April 26th and 4th we have to meet the changing requirements of your members.
PYMNTS research shows that most CUs have risen to the challenge of innovating the digital products and services that their members have come to expect. CU members are more satisfied than ever with the innovative performance of the CUs. 80 percent state that their CUs are “somewhat” or “very” innovative in their opinion.
According to their members, CUs don’t just introduce new products and services more effectively, but also to invest more in the types of innovations members want to take advantage of. For example, ninety-eight percent invested in loyalty and reward innovations in the past year, and 93 percent have invested in security, authentication, and digital identity innovations during that time.
Still, there are a few key hurdles that CUs have yet to overcome in order to reach their full innovation potential, with limited technical skills high on the list. 63 percent of CUs say they lack the data analytics capabilities they need to create personalized member products, and 51 percent say their core systems capabilities do not allow them to develop the types of products that are required to perform the Meet member expectations.
These are just the few factors that keep CUs from innovating so quicklyy and effective as you need to compete in this new digital ecosystem. The Credit Union Innovation Study provides a broader overview of how CUs can optimize their innovation effectiveness.
To learn more about the innovation battles CUs face – and what they can do to overcome them – download the report.