Getting Ready: Digital Transformation for Credit Unions
For decades, we’ve seen the rise and fall of a variety of corporations due to changes in technology. We’ve seen well-known companies in the movie rental, photography, and retail industries disappear quickly, while others seem to have appeared overnight – all because of their ability to transform digitally.
Why did it only take a few years for Blockbuster to be disrupted by Netflix? Why is Uber successful despite owning any vehicles? How did AirBnB take over the hospitality industry without owning any buildings? How do credit unions transform digitally to remain relevant and succeed in today’s evolving environment?
Since 2002, Google, Amazon, and Netflix joined the S&P 500 stock index. During the same period of time, Kodak, the New York Times, Palm and Compaq lost market share and dropped from this same list.
Today, fintech companies such as Acorns or online lending portals like MortgageHippo are encroaching upon the newer, digitally savvy credit union customer. Credit unions are concerned that they are rapidly losing relationships with their customers, and their money.
So what role do credit unions have to play in this game? They are accountable to bring real value to their their members and communities (as opposed to big banks have owners and stakeholders). Traditional approaches such as branch-only services have become insufficient for customers and employees. Attracting, retaining and engaging them has become paramount.
Credit unions are facing a big opportunity: to be bold enough to get into the digital game and embrace digital transformation to endure the long-term. The only way to survive and grow exponentially, is to go digital.