Reimagine Credit Unions of the Future

A recent Filene report (The Credit Union of the Twenty-First Century)¹ embraced the task of imagining the credit union of 2034, at the 100^th anniversary of the Federal Credit Union Act.

The report’s authors acknowledged that while many of the socioeconomic factors that originally drove the “why” of credit unions remain the same, innovations in technology mean the “how” has changed greatly.

6 Emerging Technology Trends & Challenges

Credit unions must address these six emerging technology trends and challenges:

4 Models of Banking

Credit unions must prepare for this near future by considering these four models of banking, which rely on some level of digital transformation:

• Relationship banking. Differentiated by credit unions’ awareness and responsiveness to community and member needs. Creates something “…deeper than a deposit.”
• Ambient banking. Banking is seen only as a facilitator of a member’s other activities. Relies on a mix of human hand-offs and chatbots driven by artificial intelligence.
• Automated banking. Fueled by member data, credit union processes are largely automated, freeing up staff to focus on specific member needs and relationships.
• Concierge banking. A combination of data-driven recommendations and human financial advisors will help overwhelmed members get the advice and help they need.