The biggest digital banking trends we've seen so far in 2017

Digital banking continues to change the way people manage their finances, and it is increasing in capability and adoption. Digital banking platforms are no longer an emerging trend in the financial industry – they’re becoming the norm for conducting transactions. They are, however, becoming increasingly sophisticated and accessible.

Here are the biggest trends we’ve seen in the digital banking space this year:

Cutting-edge data analytics. Credit unions are using member data in powerful ways that benefit both the credit union and member. By leveraging existing data, credit unions can analyze member behavior and tailor the products and services they recommend, which deepens relationships and increases revenue. Analysis of “big data” is becoming more advanced, allowing for personalization that members desire from their credit unions. 

Digital payments and mobile wallet. According to the Pew Research Center, 77% of Americans own a smartphone. Although branches are still important in building member relationships, the reality is that customers expect to be able to complete their banking transactions online. Mobile wallet is also increasing in popularity. People expect to be able to make payments with the click of a button, not with a credit card or check. Demand for these services will only increase.

Streamlined digital banking experience. A consistent, easily accessible digital banking expense is a must. According to the 2017 Digital Banking Report, improving the digital banking experience is a top priority for financial institutions. Customers expect to conduct transactions seamlessly across devices anytime, anywhere from an intuitive platform. They also expect access to help should they need it, in real time (e.g., a chatbot). 

Gamification. Many financial institutions are implementing game-like activities to incentivize their members toward certain behavior, as well as educate them on financial literacy. Relationship pricing (or loyalty programs) use gamification to inspire loyalty (think: points toward a reward like a lower loan rate for adding on additional services at the credit union). It can also be used to encourage behavior like depositing into a savings account or making a loan payment on time.

Prevalence of open systems. Legacy systems are being phased out to make way for open architecture systems that can be updated more easily and efficiently. Open systems allow for new software to be applied at a quicker rate, which is essential considering the rapid pace at which new technologies are developed. Open systems continue to replace outdated models. Customers want to be able to manage all of their finances from one interface – adaptability and integration with third party software are key.

When thinking about adopting new technology at your credit union, consider implementing these measures – they create a better experience for your members, and in turn inspire loyalty and engagement. Staying ahead of digital banking trends will help you outdo the competition and attract and retain the membership you want.

David McCullough

Senior Solutions Manager

EPL, Inc.

Attracting and Retaining Gen Y Employees

By 2025, millennials (those born between 1981 and 1995) will account for 75% of the U.S. workforce.  Don’t wait until then to start planning for their arrival in your business. Take a close look at how millennials work in order to understand how to work with them.

As employees hailing from Generation Y, they have the ability to be a positive influence on the culture of a workplace based on their enthusiasm for networking and collaboration. They can assist current leaders with newly emergent challenges. They desire to join the succession pipeline for their supervisors’ positions because they have high expectations of themselves. They want to be challenged and make meaningful contributions right away. They want opportunities to use the knowledge, skills and talents they have to solve problems, innovate and lead.

Millennials have gotten a bad rap.  They are perceived as entitled, insubordinate, lazy and ungrateful.  However, the truth is that they are anything but. More than any other generation, millennials want to make a difference, and they’re willing to put in a lot of time and energy to do so. In addition, they do what their managers tell them to do more frequently than those of any other age group. 

To make better connections with millennials, keep these ten (10) tips in mind:

1. Let go of your stereotypes and focus on their positive attributes.
2. Pair them with executives who can support their careers while having millennials teach executives about new technologies.
3. Focus on their results more than where and when the job gets done.
4. Use social networks to engage them — not to just post jobs.
5. Don’t restrict Internet usage; if you block social networks, they may not want to work for you.
6. Establish internal hiring programs to give millennials — and all members of your workforce —opportunities for growth.
7. Align your company’s message to a cause to give them a sense of fulfillment at work.
8. Sit down with them and be open about the company’s health, their performance and the future of your group. They will trust you in return.
9. Millennials want to make a major impact at your company, so give them the tools, support and resources to do so.
10. Develop gamification applications to engage millennials and build your brand.

Other Takeaways:

•    #1 Complaint?  Hearing you say, “When I was your age…”
•    No news is bad news.  Feedback is essential.
•    Technology allows work and personal life to overlap.
•    Remember. They can’t imagine being as old as you are. 

Generation Y wants to keep learning and be developed incessantly.  Every single day more than 10,000 baby boomers reach the age of 65. That is going to keep happening every single day for the next 19 years. Generation Y is in the pipeline to replace them all, but they can’t prepare themselves without proper mentoring, development and succession planning.  Ask yourself and your company leadership this question: What are you/we doing to help our company prepare for the future?  The times to act is now, and keep the lines of communication open.

Cathy Hulsey

VP-Human Resources

EPL, Inc.