The productivity dream is a workforce that is neither overworkednor underused, with teams that are engaged, motivated and enabledto perform. The dream is to find seamless support from appropriate,user-friendly technology that doesn't unravel under pressure, andautomating any tasks that require zero human input.

The reality is that even in this new digital era of work,productivity is usually hindered by one of these areas being belowstandard, underfunded or simply overlooked.

The obvious solution to the productivity puzzle – thetechnological evolution – is being hindered by human failings andfears that pervade the highest echelons to the lowest ranks of thecredit union.

In a 2017 study by CO-OP Financial Services, 221 credit unionleaders were asked to highlight the main barriers to digitaltransformation, and more than half (52%) cited an inability toinnovate quickly and effectively, while a third (34%) said beingtied to a legacy IT infrastructure was holding their credit unionback. A lack of technology capabilities among staff and externalpartners was selected by 39% of respondents.

But this same group overwhelmingly agreed that digitaltransformation was either “quite” or “extremely” important (88%).It's up to credit union leaders to find ways to alleviate fears andlead the charge, because the business case for deploying the latestin financial services technology is compelling.

In a 2016 PwC survey titled “Blurred Lines: How FinTech isShaping Financial Services” of 544 CEOs, heads of innovation, CIOsand top-tier managers from 46 countries, and all involved indigital and technological transformation in the financial servicesindustry, 75% said the most important impact of fintech was anincreased focus on the customer.

More than half (51%) said fintech could leverage existing dataand analytics, while 42% agreed it could enhance interactions andbuild trusted relationships, as well as enhance business withsophisticated operational capabilities.

While overhauling or replacing existing legacy systems can becostly, a large majority of respondents (73%) rated cost reductionas the main opportunity related to the rise of fintech. As thereport stated: “In this regard, incumbents could simplify andrationalize their core processes, services and products, andconsequently reduce inefficiencies in their operations.” What Credit Unions Need FromTechnology

Laying the right tech foundations can eliminate almost allpotential productivity pitfalls. Experienced managers will knowthat engaged employees are productive employees. To engage teamsfragmented by flexible working practices – increasingly demanded byworkers who want a better work-life balance – or by the distancebetween branch offices, intranet-based technology can help creditunions create a sense of community and cohesion.

This includes apps – consolidated into a single platform used byeveryone – for sharing news and ideas, to improveinter-departmental and cross-organizational communication, and tocollaborate on projects.

Credit unions need to be meticulous about updating staff on allcompliance, procedural and policy changes. Tech should allowemployees to access all the information they need to do their jobs,all from a central source.

But the possibilities extend well beyond the employee network.Credit unions need to engage their members as well as their staff.Communicating a recognizable brand and a strong set of core valuesand ethics that run through the heart of every credit union startsat the point of onboarding and must be re-established with everytransaction.

Moreover, digital analytics tools – including customerrelationship management apps – can quantify and therefore simplifya member retention strategy.

Forward-thinking credit unions are already forging partnershipswith the competition – disruptive fintech startups – to get thebenefits of innovative technology without investing in research anddevelopment.

Aren't There Real Security Fears?

Although security fears dominate the headlines daily, digitalsecurity solutions grow more sophisticated by the day.

It is outdated, legacy systems that pose the highest risks tosecurity, and which can severely restrict the user experience,culminating in member attrition. These systems must be replaced orcompletely overhauled.

On-premise server hosting was long favored by the financialservices industry, though that's all changing now thatsophisticated cloud-based solutions have evolved.

Although hosting a service internally might be seen as moresecure, those servers can be forgotten and left out of date with insecure applications andvulnerabilities. If the internal documentation isn't good, assoon as people leave the IT team, these servers can be left asunknown black boxes in the network, which is a potential securitynightmare. By contrast, cloud service providers provide regularautomatic software and security updates so they can be moresecure.

But, although IT teams are typically less resistant toentrusting data with cloud providers, there is still resistancefrom board-level decision makers who can take a different view. Andwhile resistance to digital change can come from the top, there maybe resistance from staff members who feel their jobs are at risk,too. How to Deploy New Technology WithCare

Credit unions facing fear of digital change should take solacein this pearl of wisdom from Carl Benedikt Frey, co-director of theOxford Martin program on technology and employment at OxfordUniversity: “Fears about technology, and certainly fears thattechnology will destroy our jobs, have been with us for as long asjobs have existed.”

It's very easy to get the implementation of technology wrong –and it's either because inappropriate software was selected in thefirst place, or because it wasn't introduced withconsideration.

Technology requires careful deployment and thorough training toassuage fear.

1. First, credit unions must devote time and resources to comparingand selecting the right technology. Change management is not goingto help if the software chosen doesn't solve problems or free upstaff time, and isn't user friendly.

2. Depending on the scale of the change, invest in implementationand not just the technology itself. Depending again on theimportance, try a pilot with a “control” team.

3. Involve people early on in the decision-making process. If youcan get users involved in the decision-making phase, they'll offeruseful feedback and act as cheerleaders later on when it's rolledout across the board.

4. Couple effective training with strong internal communicationsthat explain what problems the new software solves. Market thechange internally with as much care as you would market a newproduct externally. Remember that, to your staff, this is acultural change as much as an operational one.

5. Lastly, decision makers should recognize that sometimes, thefear of change is perfectly justified. Employees may very well losejobs or be asked to take on different responsibilities because ofdigital transformation and automation. Clearly, what is good forthe company may well be bad for some employees and their positions.Accept this, get HR involved, and make dealing with that unpleasantfact an identified and well thought out part of your changemanagement.

Technophobia is not to be mocked. When it exists at the top oforganizations, it really can delay the progress and productivity ofentire industries – and credit unions are not an exception. Whereemployees are concerned, fears can be alleviated with goodplanning.

Yes, digital evolution is disruptive, but the opportunities toadd value and be relevant to members, boost productivity, cutoperational costs in the longer term and future-proof the creditunion industry is well worth the upset, and is unavoidable forcredit unions that don't wish to become obsolete.

Nigel Davies is Founder of Claromentis. Hecan be contacted at 0044-7771-776-454 or [email protected].