Delivering aseamless member experience across physical and digital deliverychannels is no longer just an option for credit unions to consider,it is a critical component of effective member acquisition andretention. This evolving method of service is referred to asomnichannel banking and it satisfies banking consumer demand forhaving a similar level of convenience that members receive fromsocial media, entertainment and news gathering tools. It alsobenefits credit unions by creating opportunities to increaserevenue, improve internal operational efficiency and lower the riskof losing members to other institutions due to slow or inconsistentservice.

A complete omnichannel banking model includes an institution'sphysical locations as well as mobile, online, self-service kiosksand ATMs. When all elements are integrated into a unifiedexperience, an omnichannel model helps create amore profitable, flexible and agile institution that canquickly react to changing member demands and preferences. Membersbenefit from the ability to engage the credit unionthrough their preferred channel, giving them greater control overwhen and where they do business with the credit union.Additionally, their questions are answered quicker, with lesseffort, and they have a more engaging experience that ispersonalized for their needs and financial situation. Anomnichannel model also opens the door for credit unions to upselland cross-sell members regarding other products resulting inincreased wallet-share.

Yet, while many credit unions have some digital servicecomponents, most do not use them effectively to create a trulycomprehensive omnichannel model. As the millennial generationincreases its financial influence and we see more digital consumersacross age groups, credit unions must leverage the latesttechnologies to service members anytime and anywhere.

Where to Start

Credit unions that are just getting started with digitalchannels should begin by enabling basictransactions including balance inquiries, accounttransfers, remote deposits and bill payments through digitalchannels. When enabling a particular capability ortransaction in a channel (such as mobile), it is important toensure members can fully complete their business without requiringthem to use any additional channels other than where theyoriginally interacted with you. Forcing members to switch channels(such as from the mobile app to the website) in order to finish atransaction creates friction that can negatively impact memberloyalty.

For example, credit unions can enable a more engaging experiencein digital channels by allowing members to use click-to-videofunctionality to start a video session for quick assistancewhen needed (think of the Amazon Mayday button as an example).

Best practices for mobile channels and social media interactionsare also beginning to emerge within the credit union space. In the mobile arena, some credit unions are going well beyondoffering the basic functions via the mobile app and are nowproviding information on automobiles and auto loans within theirmobile apps. This provides members with information where they needit, when they need it, and it makes it easier to do business withthe institution.

When it comes to social media, credit unions building acomprehensive omnichannel model must go beyond simply maintaining apresence on Facebook or Twitter to monitor and respond toinquiries. Instead, they must use social media to engage withmembers to learn what is important to them. By doing so, creditunions are providing members with forums for education and sharing.Ultimately, this keeps members in constant contact with the creditunion on multiple channels and platforms, resulting in greaterbrand loyalty.

Optimizing Your Technology Investmentsfor the Future

A tremendous amount of technology exists today that can be usedto transform banking and help credit unions develop an omnichannelmodel. As credit unions are considering implementing an omnichanneldelivery model, they may be plagued by legacy platforms andapplications that could hinder them. To begin taking actionablesteps to enhance your service, the first thing to do is to assessyour current technology environment. From there, definewhat you want your future level of member service to be andhow technology can help achieve your business objectives. Torealize the full value of your technology investments, it isimperative to connect the credit union's business objectives withthe technologies' capabilities, and build bridges between IT andbusiness stakeholders in the organization.

When evaluating technologies to support your omnichannelstrategy, focus on technology platforms that can support all of thechannels where members want to engage with the institution. You want your members to be able to access the credit unionand all of its resources whenever and through whatever channel theychoose. You also want internal employees to be able toconnect and collaborate to better serve member needs through moreefficient processes and consistent information. Focus onplatforms that support both of those scenarios.

At the same time, evaluate the way your institution will usetechnology platforms, applications and services. Do not takea “build it and they will come” attitude. Any successfultechnology implementation will require communication and trainingfor members as well as employees, and a deliberate effort to ensurethat employees are leveraging new technologies to their fullextent. You need to build business processes withtechnology integrated into them. In other words, do not makethe technology an option – make it integral to the business modeland the way your credit union delivers services to members.

Take advantage of the increased efficiencies andflexibility offered by the cloud for both infrastructure andapplications. Everything-as-a-service (XaaS) and managed serviceofferings can help accelerate your move to omnichannel, and alsosignificantly improve the cost/benefit analysis of investing in newtechnologies and capabilities.

Above all, ensure that future investments will enableand not hinder your ability to rapidly scale with new technologiesto effectively acquire and retain the next generation of members.XaaS and managed services can help position credit unions forcontinued innovation, and also drive down overall operating costsfor savings that can then be passed back to members.

When walking through these steps, it is important to considermore than just the next 18-24 months. Take a look at otherindustries already finding success with an omnichannel deliverymodel. Continue this habit when planning and evaluating yourinvestments to ensure you are not reinventing the wheel everyfiscal year. Get the best today, so tomorrow does not catch you offguard.

The Next Generation of Member Service

A highly personalized, omnichannel service model will be thestandard in banking within the next five years. Credit unions willbe increasingly digitized and members will be able to conductcomplex transactions, including the ability to openaccounts of all kinds, through mobile and online channels.Expertise within the credit union will be virtualized, allowingmembers face-to-face access to the most appropriate credit unionresource anytime and anywhere. All interactions will bepersonalized as data will be shared across channels and used at thepoint of contact to engage the member.

Finally, location-based services will be leveraged (if membersopt in) to provide services and make offers at the exact time andplace when the member needs those products or services.This will be the future of banking, and credit unions that want tomaintain member loyalty and continue to prosper must begindeveloping an omnichannel model today. By being the first in yourmarket to implement this level of service, you will have thecompetitive edge of taking the credit union from just the physicalbranch to the financial service always available at a member'sfingertips.

Jason Bettinger is practice director, financial services atCisco. He can be reached at [email protected] or 617-261-4356.