The productivity dream is a workforce that is neither overworked nor underused, with teams that are engaged, motivated and enabled to perform. The dream is to find seamless support from appropriate, user-friendly technology that doesn't unravel under pressure, and automating 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 below standard, underfunded or simply overlooked.

The obvious solution to the productivity puzzle – the technological evolution – is being hindered by human failings and fears that pervade the highest echelons to the lowest ranks of the credit union.

In a 2017 study by CO-OP Financial Services, 221 credit union leaders were asked to highlight the main barriers to digital transformation, and more than half (52%) cited an inability to innovate quickly and effectively, while a third (34%) said being tied to a legacy IT infrastructure was holding their credit union back. A lack of technology capabilities among staff and external partners was selected by 39% of respondents.

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

In a 2016 PwC survey titled “Blurred Lines: How FinTech is Shaping Financial Services” of 544 CEOs, heads of innovation, CIOs and top-tier managers from 46 countries, and all involved in digital and technological transformation in the financial services industry, 75% said the most important impact of fintech was an increased focus on the customer.

More than half (51%) said fintech could leverage existing data and analytics, while 42% agreed it could enhance interactions and build trusted relationships, as well as enhance business with sophisticated operational capabilities.

While overhauling or replacing existing legacy systems can be costly, a large majority of respondents (73%) rated cost reduction as the main opportunity related to the rise of fintech. As the report stated: “In this regard, incumbents could simplify and rationalize their core processes, services and products, and consequently reduce inefficiencies in their operations.” What Credit Unions Need From Technology

Laying the right tech foundations can eliminate almost all potential productivity pitfalls. Experienced managers will know that engaged employees are productive employees. To engage teams fragmented by flexible working practices – increasingly demanded by workers who want a better work-life balance – or by the distance between branch offices, intranet-based technology can help credit unions create a sense of community and cohesion.

This includes apps – consolidated into a single platform used by everyone – for sharing news and ideas, to improve inter-departmental and cross-organizational communication, and to collaborate on projects.

Credit unions need to be meticulous about updating staff on all compliance, procedural and policy changes. Tech should allow employees 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 values and ethics that run through the heart of every credit union starts at the point of onboarding and must be re-established with every transaction.

Moreover, digital analytics tools – including customer relationship management apps – can quantify and therefore simplify a member retention strategy.

Forward-thinking credit unions are already forging partnerships with the competition – disruptive fintech startups – to get the benefits of innovative technology without investing in research and development.

Aren't There Real Security Fears?

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

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

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

Although hosting a service internally might be seen as more secure, those servers can be forgotten and left out of date with insecure applications and vulnerabilities. If the internal documentation isn't good, as soon as people leave the IT team, these servers can be left as unknown black boxes in the network, which is a potential security nightmare. By contrast, cloud service providers provide regular automatic software and security updates so they can be more secure.

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

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

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

Technology requires careful deployment and thorough training to assuage fear.

First, credit unions must devote time and resources to comparing and selecting the right technology. Change management is not going to help if the software chosen doesn't solve problems or free up staff time, and isn't user friendly.
Depending on the scale of the change, invest in implementation and not just the technology itself. Depending again on the importance, try a pilot with a “control” team.
Involve people early on in the decision-making process. If you can get users involved in the decision-making phase, they'll offer useful feedback and act as cheerleaders later on when it's rolled out across the board.
Couple effective training with strong internal communications that explain what problems the new software solves. Market the change internally with as much care as you would market a new product externally. Remember that, to your staff, this is a cultural change as much as an operational one.
Lastly, decision makers should recognize that sometimes, the fear of change is perfectly justified. Employees may very well lose jobs or be asked to take on different responsibilities because of digital transformation and automation. Clearly, what is good for the company may well be bad for some employees and their positions. Accept this, get HR involved, and make dealing with that unpleasant fact an identified and well thought out part of your change management.

Technophobia is not to be mocked. When it exists at the top of organizations, it really can delay the progress and productivity of entire industries – and credit unions are not an exception. Where employees are concerned, fears can be alleviated with good planning.

Yes, digital evolution is disruptive, but the opportunities to add value and be relevant to members, boost productivity, cut operational costs in the longer term and future-proof the credit union industry is well worth the upset, and is unavoidable for credit unions that don't wish to become obsolete.

Nigel Davies is Founder of Claromentis. He can be contacted at 0044-7771-776-454 or nigel.davies@claromentis.com.

Instant Insights /

In the New Era of Work, Deploy Disruptive Tech With Care

Related Stories

Recommended For You