Digital Transformation: It’s Time to Cook or Get Out of the Kitchen

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September 7, 2022

Today, consumers have become fairly accustomed to managing their finances online in just minutes. Unless you are a Gen Zer or young Millennial, you may recall it taking an hour (give or take), round-trip, to accomplish the same tasks at your local branch.  While some may long for those days of face-to-face interactions, digital acceptance by your consumers, members, and even employees is a crucial step in the progression, longevity, and success of your institution.

In this article, we’re going to talk about why your financial institution needs to prioritize its digital transformation, how becoming digitally optimized positively affects your employees and your business, and some recommendations on where to start or how to best continue your digital transformation journey.


To Optimize or Not to Optimize

Digital acceptance gives institutions more time back to focus on higher-level goals and value-added tasks. This is especially important as trends point to a future decline in financial institutions; The Financial Brand reported that half of all banks in the U.S will disappear in the next 20 years – and credit unions are not immune either. Focusing on efforts that can reduce your chances of becoming a part of this statistic should be top of the list.

The closer to being fully digitally optimized that you can get, the better your institution’s chances are of thriving in an inevitable digitally dominated market. You’ll want to review current processes, employee workloads, consumer needs, systems, and technology (don’t let legacy tech hold you back!), and then create a strategy that will increase efficiencies and generate more consumers and accounts. You might be thinking, “but we are in the process of digitally transforming.” Maybe, but is it a priority? A Cornerstone Advisor survey found that 47% of banks and 53% of credit unions started their transition between 2018-2021, with the majority of the rest planning to take action in 2022. This is a process that can take years to accomplish.


The New Employee vs The Old Employer

Staffing shortages are a real thing and it seems like every industry is feeling it. In June 2022, over four million people quit their jobs. COVID-19 changed the way people view work and how they want to do it. Between remote, hybrid, and in-office models, people have higher expectations for what they will accept from an employer. Now the interviewer has become the interviewee. 

When a group of bank and credit union executives were surveyed about their top concerns for 2022, attracting qualified talent dominated the list (both up over 40% year-over-year).

 Top concerns of bank executives from 2020 to 2022

Top concerns of credit union executives from 2020 to 2022 

This is not only affecting institutions and the employees that are taking on additional workloads, but it’s also severely affecting the customer experience as its effects trickle downstream. To attract qualified talent, you must be able to compete at a higher level with other companies that are looking to do the same. Improving efficiencies and processes helps to reduce the mundane tasks that can lead to employee burnout. Removing lower-level responsibilities, which can easily be done online or with the help of a tool, will not only give back valuable time to focus on higher-level tasks that can make them feel more fulfilled, but you are also giving your consumers (and those looking for a new financial institution) the remote self-servicing they are often seeking today.


Cook or Get Out of the Kitchen

As much as some might yearn for the way things used to be when it comes to managing their financial institutions, the reality is those days are gone. We’re in an ever-changing world of “cook or get out of the kitchen,” and being able to adapt and grow is the name of the not-going-out-of-business game. Thankfully, you don’t have to do this all on your own and there’s reason for great optimism. Thanks to technology and the ingenuity of software developers, there are tools that help make the digital optimization process faster and, in the end, can help your business run more efficiently, help you attract talented employees that are empowered to do their jobs, and in turn will improve the customer experience. 

As promised, here are some recommended digital tools to help get you started or to keep you moving forward in your optimization journey.

  • Digital Lending Platforms – helps borrowers get approved for a new loan remotely
  • AI Virtual Assistants – call automation improves the customer service experience, increases revenue, and reduces costs
  • AI Credit Decision Platforms – instant loan decisions powered by artificial intelligence that can generate more approvals with lower risks
  • E-Signature – close loans more efficiently and conveniently with digital signing
  • Text Solutions – from marketing to payment reminders to completing a transaction, texting offers on-the-go solutions

When it comes to being digital, time is literally money. Concentrating on getting digitally ahead, or even digitally caught up, can help the longevity of your institution and present you as an attractive, potential employer while also empowering and freeing up the valuable time of your current employees.

Learn more about digitally optimizing by tuning into the webinar Digital Optimization Strategies in the Experience Age: Are You Optimizing for Your Members?



About Allied Solutions

Allied Solutions, LLC is one of the largest providers of insurance, lending, and marketing products to financial institutions in the US. Allied Solutions uses technology-based products and services customized to meet the needs of over 4,000 banks and credit unions, along with a portfolio of innovative products and services from a wide variety of providers. Allied Solutions maintains several offices strategically located across the country and is a subsidiary of Securian Financial Group, Inc.


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Content in the blog posts are the opinion and views of the writer, and don't necessarily reflect the opinions or views of Allied Solutions.

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