Technology should speed up processes without frustrating members

As credit unions bring more technology into their workflows, West notes that faster doesn’t always mean better when it comes to member satisfaction.

“There are processes that become less expensive and faster with technology, but you still need to have a human in the loop,” he says. “If you think about chatbots, for example, if they’re not working right for the member, frustration can quickly spiral.”

One way to prevent that is by setting guardrails for when to bring in a human before the experience starts to suffer. For instance, West says State National’s policy is to transfer a member to a human if a chatbot can’t answer a question within two responses.

It’s strategies like this that allow credit unions to capture the efficiency of technology while still being mindful of the human on the other side of the tools.

Managing changing risks and modeling the future

West also points out that technology can help credit unions manage evolving risks, such as staying compliant with changing regulations across multiple states.

“Technology can really help you with these situations,” he says. “In the past, you had a complicated compliance checklist and someone had to go through the entire thing manually. Now, the tech itself can offer guidance, like, ‘Hey, you’re in this state and in this situation, so here are some factors to consider.’”

West adds that newer tools can even handle back-end auditing, which helps reduce human error and ensures teams have access to the information they need. This ability to scale is a key advantage. “If you think about humans doing audits, maybe they can only complete 25 a month,” he says. “But with technology, that number might jump to a thousand.”

With the time savings, credit union teams can shift their focus to more meaningful work, like the human interactions with members that make the experience feel personal and valuable.

West also notes that technology improves visibility into portfolio risks and opportunities, which supports more informed decision-making.

“If you’re too conservative, that’s going to limit your growth potential,” he says. “And if you’re too aggressive, you expose the credit union to more risk. So being able to identify and model those risks quickly is a huge benefit.”

West explains that technology allows you to explore scenarios: “If I change this rate or this fee, how does that affect the model? What does that look like two or three years from now?” rather than relying on traditional trial-and-error approaches.

Outsourcing versus homegrown solutions

When it comes to implementing new technologies, most credit unions increasingly opt to partner with external vendors rather than develop solutions themselves. According to West, the trend is clear: “I think it’s probably 95% outsourcing, because so much technology has become so niche that it’s hard for somebody in-house to have the amount of expertise needed to build it,” he explains.

For instance, consider something like voice analytics in a contact center. Building a tool like that from scratch would be a monumental challenge for most credit unions—not to mention incredibly time-consuming and resource-intensive. Outsourcing to a specialized vendor often becomes the only practical choice for gaining access to sophisticated tools that meet the growing demands of modern operations.

However, West cautions that choosing the right partner is critical. A provider that can thoroughly vet compliance concerns and seamlessly integrate with existing systems is essential. "It might look great on a screen, but if it can’t interact with your systems, it’s not going to be very helpful," he says. He also highlights that even seemingly straightforward tools, like text messaging systems, come with compliance complexities that require attention to detail.

“You may think texting should be simple—I’m just sending a text to my member,” West points out. “But there are all kinds of rules and regulations around texting. You have to make sure you’re following those rules, or it could create more risks than benefits.”

When State National implemented a texting solution for their credit union clients, West’s team conducted extensive research to identify a vendor that was a leader in compliance. They prioritized a partner that not only ensured regulatory requirements were met at launch but that was also committed to ongoing updates to maintain compliance as regulations evolve.

For credit unions considering whether to build or buy, the choice often comes down to balancing practicality with peace of mind. Developing technologies internally comes with the responsibility of understanding and adhering to detailed regulatory frameworks. Partnering with a trusted vendor can not only reduce this burden but also enable credit unions to focus on what they do best—serving their members with personalized, human-centered care.

Start small, but start now

For credit unions unsure of where to start, West offers a single piece of advice: Start small and don’t let perfection stall progress.

“There’s a lot of talk and ideas, but sometimes there’s really no action,” he says. “Start with changes that have low risk—maybe it’s implementing text applications or something similar. Start small to get that momentum going.”

West also explains that consolidating data is key to tapping into the full value of many technologies, including AI. “Credit unions often ask us how we are using AI and how they can leverage it. I always say that the biggest thing you have to start with is getting all your information in one central location,” he says. “When everything is spread across three or four different systems, it makes it hard to fully use technologies like AI.”

Many credit unions are naturally risk-averse, and for good reason, but West emphasizes the importance of maintaining that forward momentum. “Get the cadence going, get that momentum going, and then one thing will lead to another. Efficiencies will add up to other efficiencies and it will be good for the credit union and for your members.”