Reimagining credit unions: Attracting tech-savvy members with digital transformation

Many community banks around the world including credit unions, rural banks, and savings and credit cooperatives (SACCOs) are suffering from a rapidly ageing and shrinking membership because they struggle to attract younger tech-savvy people. They also face challenges from increased financial regulations, new fintech entrants, and established financial organizations with significant economies of scale. To help them survive and thrive, VeriPark has developed its “Credit Union of the Future” business model for community banks worldwide.

VeriPark’s new member-centric model sets out how credit unions can harness the power of innovative cloud-based digital technologies to deliver personalized financial services. It draws on insights gained through in-depth interviews with decision makers at leading credit unions around the world, (both VeriPark customers and non-customers). It reflects the fact that younger generations prefer to open digital bank accounts and engage through multiple digital channels that offer experience-driven financial products.

This article gives a brief overview of our vision for the ‘Credit Union of the Future’. However, we recognize that credit unions face unique challenges in terms of their community focus, their mutual status and their commitment to deliver on cooperative principles. We therefore invite business leaders and their information technology advisors to contact us directly about how we can help you address your specific, local needs.

Engaging new members with seamless personalized banking

To remain relevant and competitive, VeriPark believes credit unions must adopt a digital first strategy that enables them to provide more engaging member experiences. At the same time, they’ll need to maintain trust, loyalty and a sense of community among members, while ensuring data security and regulatory compliance. This will require a comprehensive digital transformation of operations (from back-office to in-branch), which will reduce operational costs, increase efficiency and enable data driven relationship management. 

Here are three ways VeriPark’s “Credit Union of the Future” model can help credit unions sustain their long-term membership growth:

1. One unified platform:

• Power and agility with cloud technology: 

We can help credit unions establish new digital systems on cloud-computing platforms, like Microsoft Azure, which can provide instant scalability and improve operational efficiency. With unlimited processing power on demand, you will be able to leverage new technologies, such as Microsoft Copilots and AI-enabled analytics, to meet the evolving needs of members and regulators.

• Innovation through collaboration with fintechs: 

VeriPark’s integration technology can help credit unions add innovative products and services developed by fintechs to their range. These can include instant loans, remittance solutions, or e-commerce payment options. This enhanced offer can help you maintain your competitiveness in a rapidly digitizing financial landscape, not least by automating many banking functions.

• Moving beyond banking services: 

VeriPark’s single platform also enables credit unions to add value to their offer by integrating non-financial services, such as SME business management. This helps build deeper, longer lasting member relationships.

2. Member-centric experiences

• Member Relationship Management (MRM) is the new core banking platform for Credit Unions: 

Credit unions that deploy VeriPark’s VeriTouch system, with its unified approach to real-time data, can now adopt a member-first mentality. VeriTouch enables you to personalize member experiences with tailored offers that meet their changing needs. At the same time, our omni-channel banking service, VeriChannel, enables seamless member interactions across your service channels, including mobile and online. Now your members never have to repeat their story.

• API banking integration and innovation: 

Credit unions can leverage VeriPark’s existing ‘API farm’ to simplify and accelerate the integration of services from trusted external providers. This enables you to deliver more flexible financial services at speed while maintaining a direct relationship with members. It can also help you attract younger, tech-savvy members.

• Supporting Open Banking: 

More countries are moving towards Open Banking standards. By enabling secure, API-based access to third-party providers, VeriPark can help credit unions position themselves as leaders in this space. This can also create opportunities for new revenue streams while enriching your members’ experiences.

3. Enhanced decision making

• Enabling data-driven decisions with AI:

VeriPark has invested heavily in its artificial intelligence (AI) capabilities, including the use of Microsoft Copilots. As such, we can provide credit unions with real-time insights and automation that enhance decision-making processes. For instance, services like VeriLoan can help you optimize your loan origination risk assessments and improve the efficiency of your delivery to members: the right loan at the right time.

• Customer segmentation and personalization: 

With VeriPark’s AI-enhanced data analytics capabilities, credit unions can adopt a ‘member-of-one’ approach to membership engagement. Analyzing member behavior patterns enables you to go beyond basic customer segmentation and instead provide highly personalized services based on individual needs.

Building a sustainable, cooperative business model

VeriPark’s technology is already helping leading credit unions provide excellent member services while achieving profitability. By focusing on relationship-building, as well as maintaining your cooperative principles, VeriPark’s tools allow you to offer services that benefit both your members and the credit union itself.

Book your free consultation with us today

Find out how VeriPark’s ‘Credit Union of the Future’ model can transform your offer to members and help you stay competitive. Book a conversation with our Chief Industry Officer for Financial Services, Zubair Ahmed, by simply filling out the form below.