Challenge 2025
World Council of Credit Unions (WOCCU) is pushing for global credit union (co-operatives systems digitization by 2025.
WOCCU notes its target of reaching 260 million credit union members by 2020 set in 2014 was mainly made possible by co-operatives that offered cores serverces via online and mobile channels.
“That is why we are now addressing how we increase membership going forward—through the digitization of the global credit union system by 2025.”
WOCCU will measure the digitization of credit unions in four key areas and report annually on the progress being made toward Challenge 2025.
Digital Channels
Offering members core digital transaction services such as online and mobile banking, online payments and online loan processing.
Shared Platforms
Connecting your credit union to a shared payments system that allows for mobile payments and integrated with a national payments system.
Risk Management
Implementation of a cybersecurity system that complies with national regulations to protect members’ identity and consumer data from digital attacks and intrusions.
Data Analytics
Employing data analytics to determine additional service offerings to members, and helping to identify those that need financial literacy or counseling services.
“Organizations will need to best define their digital path forward and how best they can leverage its use, but must keep members’ expectations in mind. Expectations for our information systems and users of these systems will increase and the velocity of change will increase in quicker increments,” said Terry Phelps, Senior VP, Managed Information Systems, Civic FCU.
Credit unions will need to respond differently to member needs, and this requires them to work faster, and ensure flexibility and iterative processes for quick wins in how we serve members. To maintain a competitive advantage, credit unions will need to have a dynamic infrastructure that can keep pace with business and member demand, which will in turn drive business value according to Phelps.
He notes that co-operatives should seek to have the following digital services:
- Online Account Opening.
- Online Loan Origination with auto decisioning
- Online and Mobile Banking, including:
- Mobile Deposit Capture.
- Account Transfers.
- Bill Pay.
- E-Statements.
- P2P Payments.
- Online and Video Chat.
- Mobile myScore+ (Credit Score).
- Mobile Financial Wellness (PFM).
- Digital Wallets.
- Online and Mobile Card Services.
- Electronic Signature.
- Website AI (Chat Bot).
- ATM anywhere access (no fee).
Co-operatives should continue to grow and leverage digitization, with a technology focus in the following areas:
- Increase operational agility and performance in the delivery of technology services.
- Improve the design and delivery of data management so business can expand their capabilities and decisions.
- Improve and invest in security capabilities to protect mission-critical systems and data.
- Transform and simplify business processes through seamless integrations, automation, digitalization and technology around machine learning and artificial intelligence.
- Accelerate the adoption of common technology platforms and shared services to bring enterprise closer together.
- Foster collaboration and boundaryless behaviors to bridge the gap between business and technology.
The year 2020 brought an unimaginable disruption to everyone across the globe. Several within the financial services industry were scrambling to determine how best to support their members. Institutions that had embraced digital first early were able to miss a beat in serving their members.
