Jason Bettinger Delivering a seamless member experience across physical and digital delivery channels is no longer just an option for credit unions to consider, it is a critical component of effective member acquisition and retention. This evolving method of service is referred to as omnichannel banking and it satisfies banking consumer demand for having a similar level of convenience that members receive from social media, entertainment and news gathering tools. It also benefits credit unions by creating opportunities to increase revenue, improve internal operational efficiency and lower the risk of losing members to other institutions due to slow or inconsistent service.

A complete omnichannel banking model includes an institution's physical locations as well as mobile, online, self-service kiosks and ATMs. When all elements are integrated into a unified experience, an omnichannel model helps create a more profitable, flexible and agile institution that can quickly react to changing member demands and preferences. Members benefit from the ability to engage the credit union through their preferred channel, giving them greater control over when and where they do business with the credit union. Additionally, their questions are answered quicker, with less effort, and they have a more engaging experience that is personalized for their needs and financial situation. An omnichannel model also opens the door for credit unions to upsell and cross-sell members regarding other products resulting in increased wallet-share.

Yet, while many credit unions have some digital service components, most do not use them effectively to create a truly comprehensive omnichannel model. As the millennial generation increases its financial influence and we see more digital consumers across age groups, credit unions must leverage the latest technologies to service members anytime and anywhere.

Where to Start

Credit unions that are just getting started with digital channels should begin by enabling basic transactions including balance inquiries, account transfers, remote deposits and bill payments through digital channels. When enabling a particular capability or transaction in a channel (such as mobile), it is important to ensure members can fully complete their business without requiring them to use any additional channels other than where they originally interacted with you. Forcing members to switch channels (such as from the mobile app to the website) in order to finish a transaction creates friction that can negatively impact member loyalty.

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

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

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

Optimizing Your Technology Investments for the Future

A tremendous amount of technology exists today that can be used to transform banking and help credit unions develop an omnichannel model. As credit unions are considering implementing an omnichannel delivery model, they may be plagued by legacy platforms and applications that could hinder them. To begin taking actionable steps to enhance your service, the first thing to do is to assess your current technology environment. From there, define what you want your future level of member service to be and how technology can help achieve your business objectives. To realize the full value of your technology investments, it is imperative to connect the credit union's business objectives with the technologies' capabilities, and build bridges between IT and business stakeholders in the organization.

When evaluating technologies to support your omnichannel strategy, focus on technology platforms that can support all of the channels where members want to engage with the institution. You want your members to be able to access the credit union and all of its resources whenever and through whatever channel they choose. You also want internal employees to be able to connect and collaborate to better serve member needs through more efficient processes and consistent information. Focus on platforms that support both of those scenarios.

At the same time, evaluate the way your institution will use technology platforms, applications and services. Do not take a “build it and they will come” attitude. Any successful technology implementation will require communication and training for members as well as employees, and a deliberate effort to ensure that employees are leveraging new technologies to their full extent. You need to build business processes with technology integrated into them. In other words, do not make the technology an option – make it integral to the business model and the way your credit union delivers services to members.

Take advantage of the increased efficiencies and flexibility offered by the cloud for both infrastructure and applications. Everything-as-a-service (XaaS) and managed service offerings can help accelerate your move to omnichannel, and also significantly improve the cost/benefit analysis of investing in new technologies and capabilities.

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

When walking through these steps, it is important to consider more than just the next 18-24 months. Take a look at other industries already finding success with an omnichannel delivery model. Continue this habit when planning and evaluating your investments to ensure you are not reinventing the wheel every fiscal year. Get the best today, so tomorrow does not catch you off guard.

The Next Generation of Member Service

A highly personalized, omnichannel service model will be the standard in banking within the next five years. Credit unions will be increasingly digitized and members will be able to conduct complex transactions, including the ability to open accounts of all kinds, through mobile and online channels. Expertise within the credit union will be virtualized, allowing members face-to-face access to the most appropriate credit union resource anytime and anywhere. All interactions will be personalized as data will be shared across channels and used at the point of contact to engage the member.

Finally, location-based services will be leveraged (if members opt in) to provide services and make offers at the exact time and place when the member needs those products or services. This will be the future of banking, and credit unions that want to maintain member loyalty and continue to prosper must begin developing an omnichannel model today. By being the first in your market to implement this level of service, you will have the competitive edge of taking the credit union from just the physical branch to the financial service always available at a member's fingertips.

Jason Bettinger is practice director, financial services at Cisco. He can be reached at jbetting@cisco.com or 617-261-4356.

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