Credit unions, large and small, should culturally viewtechnology as a valuable interconnected strategic capability acrossall functional areas to give back to their membership. Technologyis an integral component to organizations, especially mediatingorganizations such as credit unions, which obviously bring saversand borrowers together for their respective communal benefit.

Credit unions facilitate an exchange or transaction between twoor more members of their charter, and must do so in the manner andwith the timing that is most beneficial to these members. Today that is often 24/7, online, or via a mobile device, andcertainly members' desires will continuously evolve as a societyand culture transform.

For a credit union to be a member's primary financial“go-between” per se, technology is not separate, it is not anorganizational silo operating independently, nor does it solelyexist for the productivity of the back office. Instead, technologyis a multidimensional capability to deliver significance and memberexperience, in addition to creating operational excellence,automation, and standardization to such routine activities asopening memberships, conducting transactions, and completing loanapplications.

Furthermore, the rapidly evolving external technology sector,much like the political, legal, social, cultural and economicsectors in the broader strategic landscape, will influence theoverall environment in a multitude of ways that may emphaticallyforce a credit union, large or small, to adapt to remain viable.This remains true even if their ability to employ such technologyis limited.

Yet, technology can also be one of the greatest evolutionarystimuli on the internal activities of a credit union. For example,computer technology, data and the inherent consumption ofinformation inspire shifts in organizational business models,strategies, structures (social and physical), and operationalpractices, while simultaneously affecting societal expectations foraccess and responsiveness.

Moreover, technology affects other direct and indirectstakeholders such as partners, vendors, regulatory agencies andcompetitors in each respective credit union network. In fact, thetechnology imperative theory argues that choosing a particulartechnology will actually determine many other vital aspects of anorganization, large or small.

Likewise, the social construction of technology theoryessentially describes how technology evolves via complex socialtrade-offs. Interestingly, there is further duality in this socialtheme. Social and cultural constructs influence technology andtechnologies influence society and culture. Ergo, while a creditunion may be unlikely to influence overall society with itstechnology (the financial services industry as a whole may) or evenhave the capacity to deploy specific technology, society (members)will continually influence the need to employ certain technologiesby all credit unions.

Last, tying into the internal benefits of technology, the AstonGroup found evidence that the smaller the organization, the greaterthe significance of technology with regards to structure andperformance. So it seems that smaller credit unions have the mostto gain by exploiting technology – even when such ability may beconstrained.

Consequently, choosing a core system, selecting softwareapplications, electing technology platforms, or installinginfrastructure will ultimately dictate a wide range of explicit andimplicit changes to the credit union, internally andexternally.

However, a credit union, like any organization, has a set ofvalues that include principles, goals and standards that itbelieves have intrinsic worth within its own walls and within thegeneral environment in which it operates. Technology should becooperatively valued by the internal culture in order to maximizeits advantage, and senior leadership should willingly foster itsadoption as a strategic means to an end.

Moreover, the culture should nurture the coordination andcollaboration of technology across the various functional areas todismantle silos effectively, increase communication, streamlineprocesses and strengthen organizational performance.

A lot hinges on how a particular credit union views technologyin relation to its values, vision, mission and strategy. Do I, as acredit union, wish to be a leader or a laggard with technology withrespect to serving my membership and creating member experience?How much operational efficiency and cost savings do I think I canachieve with the right technology? Is technology a means to enablemy strategy, realize a competitive advantage, influencecollaboration, and foster innovation; or do I see technology asjust a necessary “cost” to remain in business?

If my opinion is the latter, I may find myself investing in thebare minimum and always playing catch-up with member expectations,the financial services industry, and society. Finally, do we as aboard and CEO envision technology as a key pillar of our strategicplan for providing credit union products and services or do wemerely think of technology expenditure as a compulsorypain-point?

The organizational posture in the context of these questionswill ultimately set the priority for technology investment andstrategic exploitation. Culture and technology should be tightlyaligned in order to deliver the most value to the members.

Anthony W.Montgomery is a senior director for a global non-profit inNashville, Tenn., and a former credit union executive.