Reflecting on 2020: How CUs Adapted This Year & Can Plan for What’s Next

By Scott Johnston, EVP/COO, Farmington Hills, CUSO Member Driven Technologies.

Keep an eye on the rise of digital, the evolving role of the branch, business continuity planning and new ways to serve members.

This has been a year that few could have predicted. The carefully planned projects and roadmaps most credit unions had laid out at the beginning of the year were largely thrown out the window when COVID-19 disrupted the world back in March. Credit unions had to quickly adapt, transitioning employees to a work-from-home model and shifting member service strategies, all in the face of widespread furloughs, business shutdowns and all around economic uncertainty.

Though it hasn’t been easy, credit unions by and large stepped up to the plate, demonstrating their dedication to serving and supporting consumers and business members throughout their communities. Many put in around-the-clock hours to ensure members’ access to financial tools and guidance never wavered.

Looking forward, several of the shifts experienced in 2020 are likely to stick, even as promises of vaccines shine a potential light at the end of the tunnel. When planning for 2021 and beyond, credit union executives should keep a close eye on the rise of digital, the evolving role of the branch, the importance of business continuity planning and new ways to serve members.

The Rise of Digital

Digital was already quickly taking off as a strategic priority, but with the stay-at-home mandates and urges to social distance that materialized this year, this trend has exponentially accelerated. More members were suddenly performing additional and more complex tasks digitally, many for the first time.

Today’s members expect a seamless, personalized digital banking experience. They want to feel known and understood by their financial services providers, the same way Netflix can suggest a movie or Amazon a product. Credit unions must prioritize providing a digital banking experience that is intuitive and maintains a personal connection, despite physical separation.

And, digital banking apps are not the only area in which credit unions should evaluate their digital strategies. This year, traditionally manual, paper-based processes such as new account openings and loan applications faced a new demand for digital transformation. Those credit unions that continue to evolve their approach to digital and modernize processes to provide added convenience to members will be well-poised for success in years to come.

The Shifting Role of the Branch

At the pandemic’s onset, credit unions across the country were forced to close down branch lobbies, at least for a certain amount of time, or severely restrict their operating hours and models. However, many prioritized finding a safe way to open branches up again as quickly as possible. Why? Because this channel has always been and always will be a critical one for credit unions. But, its role is evolving.

For instance, some institutions found success with shifting to an appointment-only model this year, allowing members to visit the branch to meet with staff to discuss more complex topics such as budgeting, investments, financial literacy and lending. Other credit unions have invested more heavily in ITMs, providing a way for members to leverage self-service options while still benefitting from face time with live credit union representatives if needed.

However, not one single strategy will be best for all credit unions, or even all the branches within an individual credit union’s network. To optimize success, credit unions must craft a unique strategy for each branch, taking into account factors such as the member base’s demographics, preferences and specific financial needs.

Business Continuity Planning Is a Top Focus

Institutions’ business continuity plans were challenged in a major way this year. Making the shift to a remote working environment was no easy undertaking for credit unions; they had to quickly make sure employees were equipped with the tools necessary to effectively serve members from home, including laptops, monitors, and headsets/equipment. Making matters worse, fraudsters preyed on peoples’ vulnerabilities and fears associated with the pandemic, which led to a sharp increase in fraud. This uptick has highlighted how crucial it is to make frequent updates, ensuring software and hardware is optimally encrypted and secure.

2020 taught us that anything can happen. While some have previously been guilty of viewing disaster recovery and business continuity planning as a box to check, this area will stay top-of-mind for savvy institutions in 2021 and beyond. There will also be an added focus on technical teams providing application support, steady software patching and new hardware to their staff.

Getting Creative With Member Service

Consumers and businesses alike faced financial uncertainty this year. In response, credit unions rose to the occasion, providing new and creative ways to help their members through their trying times with options such as skip-a-pay programs, dedicated small business services and payday loans. Because of these initiatives’ overwhelming success, expect credit unions across the country to continue to find new and flexible ways to serve and support their members as they look toward financial recovery and stability.

The “people helping people” philosophy has always been one of credit unions’ key differentiators, and it’s only been more important this year. The credit unions that are open to shifting their strategies and business models to better serve the changing needs of their members will be the ones that can stay relevant and successfully compete well into the future.