If the last 10 years have taught us anything about financial services, it’s that the only constant is change for banks and credit unions.
Most organizations had to completely challenge their own status quo as mobile technology took off, creating an environment that required smaller and mid-sized banks and credit unions to adapt, reallocate budgets and think about their customers differently.
Now, the industry is seeing an even greater influx of technology just as some smaller organizations are still fine-tuning their mobile customer experience. FinTech partnerships are offering new ways to add value to customers, blockchain is an emerging technology that may change transactions forever, the Internet of Things (IoT) offers a new form of payment, and COVID-19 has forced every organization and industry to think about how they can engage with their customers meaningfully from a distance.
With all of this change, banks and credit unions need to have a plan in place to constantly adapt to new technology, new opportunities and new competition. Think about the following ways you can set your organization up for success.
Make a Financial Case For Constant Technology Investment
One of the biggest reasons organizations get held up in their technological evolution is due to the comfort — specifically, the financial comfort — of the status quo. If they can simply maintain their traditional approach to technology and not regularly set aside money to compete with the best, it feels easier, safer and more economically feasible.
Therefore, leadership needs to make the financial case for technology investment to its key internal stakeholders, attributing a strong competitive edge to greater revenue and returns. Work with your team to understand different forms of new technology you’re considering, and think about how they can be as cost-efficient and revenue-enhancing as possible. Specifically, FinTech partnerships, third-party software-as-a-service providers and consultants can help you transition into a new field without the permanent expenses of a new employee.
Accessing the Right Talent
At multiple levels, your organization should be thinking about how you can allocate resources toward technological evolution.
- Leadership. Make sure your organization has an individual who can own your technological change. A Chief Innovation Officer, or a Technology Director can help make sure your technology initiatives are effective, stay within budget, and create a lasting change within your organization.
- Universal Banker. At a teller level, make sure you are hiring individuals who are going to embrace technology and find ways to explain the benefits of your tech initiatives to customers. A universal banker is trained in a diverse array of tasks that expand far beyond the transactional capabilities of a traditional teller, and their ability to leverage, sell and explain your organization’s technology is a key aspect these individuals should be trained to enhance.