This article was originally published on CUInsight.
Many credit unions projected 2020 to be a transformative year. Rising competition, evolving digital technology, shifting consumer expectations, and expanding regulatory demands all played a significant role in anticipated strategic growth initiatives. Digital transformation was a buzzy term regularly shared.
The pressure was on for credit unions to update data management software and invest in communication tools to enhance the consumer user experience. Many research studies demonstrate a direct correlation between digital banking and consumer satisfaction. A 2019 Provident Bank study reported 82% of respondents said they were less likely to switch financial institutions if they like and become accustomed to their digital banking services. The potential benefits seemed numerous: lower attrition rates, increased use of service, and an opportunity to build an ongoing consumer relationship.
Then, the COVID-19 pandemic happened.
Aside from the ongoing economic disturbances, arguably the most powerful impact COVID-19 had on the credit union marketplace was the abrupt transition from in-branch to remote operations. Digital service adoption did not just accelerate in 2020 but became a necessity as the majority of the year was spent social distancing and transacting in digital environments. We collectively became experts in video conferencing, servicing clients and customers fully remote, and other digital communications.
Now looking ahead to 2021, there are many ways credit unions can proactively leverage digital opportunities to continue to enhance relationships with their members and create long-lasting value beyond simply reacting to the COVID-19 pandemic. As COVID-19 continues to impact our day-to-day lives, it’s important to continue efforts on enhancing digital tools to communicate and serve members.
We share 3 takeaways from 2020 affecting the digital outlook for 2021.
Read the full article here.
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