Thursday, April 27, 2017

Spring Cleaning Your Credit Union’s Technology - What’s Working and What’s Not?

Spring is in full swing, which means it’s time to clean out the closets, discard what you no longer use and get organized. This same principle should be applied to your credit union’s software — now is a great time to assess what is working well and what “clutter” lies in the path of progress. Remember, technological efficiency is closely tied to success in our industry. 

When analyzing what is working for your credit union, consider these four questions:

1. Do your digital platforms make transactions easier for members?
Members expect to have the data they need to make informed decisions at their fingertips. Transactions should be easily made online or via mobile apps. Did you know that the biggest obstacle for credit unions in mobile banking usage is getting members to sign up? Consider ways in which you might incentivize members to utilize your digital platforms and educate them about their benefits. If members aren’t using your digital platforms, it doesn’t matter how user-friendly they are.

2. Does your technology inspire loyalty and retention?
Your credit union’s technology should be your key to unlocking insights on member behavior and trends. These insights can be used for cross-selling opportunities that keep members engaged with the credit union and encourage them to add on more products and services. Your technology should be central to your credit union’s retention strategy. If it’s not giving you the data and insights you need, it’s time to consider an upgrade.

3. Is your software up-to-date?
According to a recent survey, most credit unions are operating with software that is more than five years old. While this is not uncommon, not all core providers regularly update their software with new features and efficiencies. When was the last time your core provider put out a major software release? Are they routinely meeting product development promises or obligations? Ensure you remain on the cutting edge by choosing an innovative core provider who evolves and delivers in anticipation of customer needs, not to catch up to them.   

4. Is your data secure?
Cybersecurity remains a hot topic and large threat to credit unions and other financial institutions. Consistent updating of your security software is non-negotiable. Computer updates as well as application updates must be applied as soon as possible upon release, so that necessary patches are installed to prevent any cybersecurity weaknesses. Also, make sure any former credit union employees have been removed from access to company systems.

When looking at your core software, are there any components that are outdated, clunky or inefficient? If so, it might be time to upgrade to a more streamlined solution. Your credit union is only as strong as the software your employees and members use daily — make sure it’s working effectively for you and your members.

Shairaj Shaik

Vice President of Software Development

EPL, Inc.  

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