Having worked in banking for nearly four decades, I've seenfirsthand how technology has transformed our industry. Over thespan of a couple generations, banking has evolved from all-papertransactions and face-to-face interactions in bricks-and-mortarbranches to a cloud-based enterprise requiring neither paper norphysical locations.

Although some customers will always prefer face-to-faceinteraction, a growing number of younger customers see paying billsor transferring funds as just one more thing that can be done on asmartphone, a financial “status update.”

To attract these customers, banks work to make virtual bankingfaster, more efficient and accessible with a broad range of toolsor apps. My experience suggests credit unions are well-positionedfor this new landscape, and may be able to lead their older, largercompetitors.

Although big banks were first with technology such ascomputerization and ATMs, today it is smaller banks that have theadvantage when it comes to adopting innovation.

Not only is technology better, less expensive and more widelyavailable than ever, more important, smaller institutions likecredit unions are simply more agile. The enterprise-wide IT systemsbig players installed 20 years ago were cutting edge then, buttoday are legacy systems, often with outdated architecture that isdifficult and expensive to upgrade.

With the ability to innovate quickly becoming increasinglyimportant for attracting and keeping customers, there are severaltrends and technologies that should be on the radar of every creditunion. Some may be obvious – and you may already be doing them –but they will be permanent parts of the landscape goingforward.

Online Banking

In much the same way the Internet has changed how we buy goodsand read the news, online banking has changed how consumers dotheir banking. The Internet has not only lessened the need forbricks-and-mortar locations, but also for people to staff them.

Consumers like online banking for the convenience it provides.To maximize convenience, it's important to offer every serviceonline that is offered at a banking center, such as loan and creditcard applications, funds transfers and more. Of course, the moreyou move business online, the more you need to be able to ensuresecurity; even the most tech-savvy customers are likely to flee iftheir accounts are compromised.

Remote Capture

This technology moved swiftly from check clearing verification tothe ATM to mobile devices. Image capture lets customers deposit acheck from anywhere in the world simply by taking a picture of itwith their smartphone.

For credit unions looking to offer the full suite of onlineservices, remote capture is a must-have. Fortunately, thetechnology is getting easier to implement and is available fromnumerous vendors at affordable prices.

Third-Party Vendors

The most successful financial institutions focus on what theyare really good at and what's most important – deposit gathering,making loans and earning fees – and outsource other things. As acorrespondent banker, I am a firm believer in the convenience andcost savings that expert, third-party vendors offer.

The fact is, vendors can supply the technology to providevirtually any service you want, but require much smaller initialinvestments than building or housing the technology yourself,allowing you to better manage costs.

For example, underwriting your own credit card is very expensiveand includes a lot of risk. But a card service vendor lets youprovide a branded credit card with competitive rates while reducingyour risk exposure. The strategic use of vendor services can helpyou meet rapidly changing customer demands without “breaking thebank.”

Online Training

Banking is a highly regulated environment and the regulationschange frequently. Online training offers a convenient andcost-effective alternative to traveling out of town for in-persontraining from regulators or state credit union associations.

Online training may only include reading and testing or can alsoinclude video seminars or live interactive sessions. For costsavings and convenience, explore every opportunity for your staffto participate in training online.

The most profitable institutions are those best able to controlcosts while providing customers convenience and a range ofservices. Credit unions have long been recognized for offeringservices at lower costs than larger banks, and passing thosesavings on to members in the form of lower interest rates andfees.

As technology continues to revolutionize the banking industry,credit unions are well-positioned to leverage their cost advantageand small-size agility to be in the forefront of technologyinnovation, being first to give customers the services they want atcompetitive prices.

Tom Bryan is CEOof NymbolTechnology in Atlanta.