Why Credit Unions Need to Implement Artificial Intelligence

artificial intelligence for credit unions

The pillar of the Credit Union industry is member service. Credit Unions have strong relationships with their members and strive to do what is right. It is a common misconception that Artificial Intelligence will remove the human aspect from banking with a Credit Union. In reality, AI is an opportunity to deepen those already strong member relationships. Artificial Intelligence can automate and improve services delivered to members while also improving your Credit Union’s bottom line.

Implementing Artificial Intelligence at your Credit Union can allow you to:

  • Offer a new service to a member at an opportune time
  • Provide an even greater customer service experience when a member has an issue
  • Deliver the convenience members seek and delight your customers

These are the experiences members are demanding and that Credit Unions must provide in order to remain competitive in today’s banking environment. And, all this starts with data.

AI’s ability to increase your Credit Union’s engagement with members begins with utilizing data that incorporates a member’s behaviors, patterns, and financial history to produce enhanced insights. Artificial Intelligence recognizes when a specific service/offer is relevant to a member and then triggers that offer. Examples of these offers include personal credit, savings, loans, insurance, and a home mortgage. Think of the possibilities for your Credit Union and the wallet-share you can capture.

artificial intelligence for credit unionsArtificial Intelligence for Credit Unions does more than allow you to target your marketing efforts. Credit Unions can utilize AI to provide superior customer service experiences. Advanced AI technologies, such as chatbots and AI-enabled communication make 24/7 customer interactions and service a reality. We live in a mobile-first world where members want access to information immediately and at the click of a button. AI is revolutionizing the business world and Credit Unions must be at the forefront of this advancement in technology.

Few Credit Unions recognize the many Artificial Intelligence solutions are already available in the marketplace, either built into software solutions that are already deployed or available in versions that are pre-integrated into existing solutions. Check out the CU 2.0 Fintech database here.

One of the more advanced fintechs bringing conversational AI to Credit Unions is Posh. Posh’s custom made chatbots deflect routine calls and reduce call congestion. Credit Unions have the ability to provide their members with a new all-in-one chat interface that reflects your Credit Union’s brand and your member’s individual profile. The Posh solution can integrate with core banking platforms from vendors such as Jack Henry and Fiserv; providing your members with the ability to interact in real time with their accounts. So, integration concerns should not hold your Credit Union back from implementing Artificial Intelligence solutions.

So, where should your Credit Union start?

The first step is to determine where your institution could benefit from the application of AI and what business problems you are looking to solve. Some examples of these areas could be:

  • Member Onboarding
  • Loan Application and Risk Decisions
  • Call Center Operations
  • Credit Scoring
  • Mobile and Web Experience Personalization
  • Offer/Service Recommendations

Next, look for that solution in the marketplace. AI is not just for the big banks! Credit Unions can benefit greatly from this technology by partnering with fintechs and deploying solutions without having to build expensive infrastructure. AI can be an agile tool for your Credit Union that can be personalized to fit your needs and the needs of your members. Do your due diligence and find the right AI solution in the marketplace to solve your Credit Union’s business needs. AI is an equalizer when it comes to Credit Unions competing against big banks.

Check out more articles from CU 2.0 on Artificial Intelligence here.

Learn more about the transformative power of Artificial Intelligence and machine learning for Credit Unions by reading Kirk Drake, Founder of CU 2.0’s, latest book, Financial. Publishing 6.15.19.

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