Technological advances over the last few decades have forever changed the way we live and do business. Emerging technology in financial services – like Fintech – has changed how customers can interact with their financial institutions; in fact, 62% of people consider easier and faster banking one of the best technological developments of the past decade. To keep up, credit unions and banking institutions have had to drastically change the way they run their businesses.
But while the digital age has not necessarily sprung up, clients expect greater digital and online options to enhance their customer experience and streamline the entire process.
Companies are implementing IT in different ways; these days, many want to deliver customer service online using self-serve portals and chatbots for instant support. An increasing number of banks are turning to digital channels to provide their customers with information on products or complete transactions remotely.
Skill gaps and shortages
Credit unions looking to modernize and provide their customers with greater online and digital accessibility are facing modern obstacles; they are grappling with skills gaps as sophisticated technologies like artificial intelligence, data analytics, machine learning, automation, and many more, play a larger role in day-to-day operations, leaving employees scrabbling to keep up. More than half of companies say they are unable to find the skills they need to thrive in the digital working world.
However, more and more organizations are turning towards a simple solution to address this skills shortage: outsourcing. The benefits of outsourcing are numerous, but to simplify: you gain specialized experts, and only pay for the work that you need.
The online ease of financial banking
Offering a modern digital experience to customers through web portals and phone apps has given those customers greater freedom and more allowances to access their finances.
Digital services also offers many benefits for financial institutions, including:
- Saving time and money on the back end
- Assisting with customer acquisition and retention
- Improving client experience and convenience
It is, therefore, unsurprising that many credit unions have made efforts to keep abreast of modern technology uses, such as phone apps and providing more self-service options. Organizations that fail to provide these options are very likely to be left behind in the dust.
Security risks as tech grows
Naturally, as the usage of IT in credit union organizations grows, so do potential threats; cyberattacks cost the United States economy an estimated $4.2 billion last year. The disconnect between the cybersecurity needs of credit unions and how they allocate their cybersecurity budgets needs to be addressed.
Phishing is still a major issue for the financial sector; access to bank accounts through emails shows how we’ve completely integrated banking into our lives. Phishing doesn’t just hit individuals either; malicious actors have targeted businesses in attempts to get access to their financial services and accounts. Staying one step ahead of sophisticated and sly actors is a full-time job in itself.
The expansion of fintech
While it has been around for over 30 years, financial technology has been so greatly utilised over the last few years that it has its own term – fintech. It was coined to describe those technologies that specifically improve and deliver the use of financial services. Used by finance employees, credit unions, and customers alike, fintech helps them manage their financial operations and processes through specialised software and algorithms increasingly used on phones and computers.
Many fintech start-ups are seen as a threat: they seek to challenge and usurp the traditional financial services that we have used for so long by providing quicker services at greater convenience. However, the potential for partnership between traditional banks and smaller fintech firms has brought the opportunity for collaboration or investment prospects between the two.
Outdated software taking up time and space
Legacy software is becoming further redundant in the digital world. Cloud-based solutions to organizations is freeing up space, time, and money. Servers, storage, electricity, and physical space are more valuable as operational expenses rise, and the ongoing maintenance of this hardware and software adds to the long-term capital.
But many of these expenses can be remedied with the switch to cloud-based platforms. The long-term savings of cloud-based lending solutions could save your organization capital that is much better spent elsewhere.
Cloud-based solutions have sincere value for credit unions, by providing:
- Lower capital and operating expenses
- Faster implementation
- Frequent software updates
- Fintech functionality provides measurable competitive advantages
What MSPs can offer credit unions
Adopting new technology and IT infrastructure is crucial for credit unions to thrive; understanding the many growing branches of IT as it affects the financial sector is just as vital.
Managed service providers don’t just deliver IT software and hardware – they seek to fully understand your business from the inside out, so that they can enhance your services, increase your productivity, protect your data and systems from outside threats, and provide assistance and training to your employees.
Contact the IT experts at Solzorro today and discover how they can help you thrive among the every-growing digital world so you can stay ahead of the competition.
