Technological advancements, especially in the mobile field, have brought many new players to the financial industry. From giant tech companies to innovative Fintech firms, the industry has experienced tremendous growth. Today, credit unions face tough competition from not just banks but also firms that offer invisible banking. Customers demand automated, secure, and convenient omnichannel services for a smooth banking experience.
More Connected Than Ever Before
The web has connected the entire society. This means that consumers are more closely connected through online purchases, banking, and social media. This data-rich connection provides companies with a huge advantage to reduce friction and form a deeper relationship with consumers. Advanced technology is being leveraged by big tech and Fintech to outpace traditional financial institutions. The leading innovators provide customers with automated service and a curated experience based on their needs.
Big Tech poses a massive threat. Credit unions already had a tough time competing with banks and Fintech. The market study reveals that close to half of banking executives believe that Big Tech will be a disruptive force. The main reason behind this fear is that Big Tech brings an extremely dedicated customer base. Not only do these companies produce quality service, but they also brand themselves well. As Big Tech is experts in data collection and analysis, they can outperform competitors.
Banking Needs To Revolve Around Members
Before credit unions start to scrutinize if their channels are invisible or not, they must review general omnichannel practices. The fact is that people of all ages are changing how they do banking and the channels they use. A lack of a strong online or mobile presence can pose a huge problem. Customers demand an easier way to interact with financial institutions and require a variety of options for interaction. Since it is not common to stick to one channel, there is a need to offer multiple channels.
Financial Institutions Might Not Be Ready
Omnichannel is a term that has been around for a while now. However, financial institutions have still not understood how to execute omnichannel delivery. They are simply not ready. Most institutions are still in the preliminary research phase. Compared to larger corporations, institutions that have assets worth less than a billion dollars are lagging, which is why there is a need to ensure omnichannel infrastructure. The following should be considered for excellent omnichannel delivery.
- Consistency across all channels.
- Personalization capabilities for the best user experience.
- Capture data through multi-touch points for analysis and valuable insights.
- Allow members to communicate using the medium of their choice seamlessly.
The main goal of omnichannel delivery is to offer customers a seamless experience that provides convenience to consumers and enables the organization to learn more about them. The best way forward is to ditch the institution-centric approach for a client-centric one. Credit unions have to engage with members through experiences rather than through transactions.