At CU 2.0, we introduce a lot of fintechs and technology organizations to the credit union industry. To be honest, we’re still shills for the concept of digital transformation.
But though we present many companies, we’re strategic about the ones we recommend. Not all digital transformation is good.
Unfortunately, some of the products and services hitting the CU market are just noise. So, let’s look at digital distractions for credit union CEOs.
What Are Digital Distractions for Credit Unions?
There are simply too many great tech companies to name in the CU industry. All of them are trying to do the same thing:
Some keep you more secure. Some help you better understand your members’ needs. Some solve real member or institutional problems.
But not every digital solution is right for your credit union. The technology might very cool, but it won’t address the issues that need to be addressed. If the new product or service isn’t part of your greater strategy, then it might be a distraction.
As introduced by Pure IT, digital distraction for credit unions are the things that you want, but don’t need.
Digital distractions are like if you go into a store to buy groceries for the week, but you leave with a microwaveable burrito and a six pack.
Sure, it’s going to be a good night. But also, it’s not going to solve your problem.
When Digital Distractions Hurt
Here are a few reasons why credit union digital distractions might hurt. CEOs should pay extra close attention!
- Digital distractions may delay your progress towards your greater goals. If you spend your money on a new toy instead of a new tool, it’ll take longer to fix whatever needs fixing.
- Strategy should trump technology. Don’t bring on new technology if it’s not part of your credit union’s strategic planning!
- Many new technologies complicate your digital ecosystem. If a tool solves one problem for your tellers, but you create a new problem for IT, did the technology actually help?
- Is it just a point solution? Does the new technology solve one small, specific problem? Or does it offer a variety of uses? Avoid complicated solutions to narrow issues—look instead for technologies that positively impact several processes.
- Is it easy to use? Many products and services have all the bells and whistles. But if those bells and whistles require extensive training and buy-in from all stakeholders, then simpler is probably better.
Just because a product or service looks helpful, that doesn’t mean it’s helpful to your credit union.
Tips for Choosing the Right Digital Solutions
There’s an easy way of avoiding digital distractions for credit unions. Seriously. And it doesn’t even involve taking a deep breath before pulling out your wallet.
Measure any market solution against your strategic planning insights.
Ask yourself a few questions:
- Does it solve an immediate, pressing problem? Or does it solve a problem we didn’t even know we had? Focus on solving the former before the latter.
- Will it make things more complicated? Or, will it shift complexity from one department to another?
- Is it part of your strategic goals? If it fits into the direction you’re pushing your credit union, that’s great! If not, then maybe you should wait.
It’s hard to say no to the newest toys. But sometimes, it’s the best decision you can make.
If a company is selling a solution to a credit union, their heart is probably in the right place. Just because their product isn’t right for you right now doesn’t mean they’re a bad option.
Plus, these things are relative. Not all technologies are digital distractions for CEOs. And a distraction for one credit union might be a lifesaver for another.
Be smart about what you bring into your credit union. And always keep your eye on the prize. Make sure that when you do bring in a new product, it’s something that you actually need!
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