Guest Editorial by Matt Phipps, Chief Marketing Officer, Agent IQ
We’ve all experienced frustrating moments with online customer service—whether it’s struggling with a confusing app, chatting with a chatbot that just doesn’t get it, or searching for a way to reach a real person for support. These experiences generally fail to meet customer expectations and lead to an erosion of trust and loyalty.
The banking industry is no exception. As more and more accountholder interactions move online, the digital experience is becoming increasingly important. To maintain a competitive edge, credit unions must prioritize investments in technologies that enhance the member experience within and beyond the branch. Digital solutions must be able to accurately understand members’ inquiries, handle complex tasks, and provide personalized solutions. Otherwise, they will be counterproductive to increasing member loyalty and satisfaction.
According to a recent study by Agent IQ in partnership with Worldwide Business Research (WBR), over 64% of the banks and credit unions surveyed reported an increase in technology spending for 2024. Along with increased technology spending, more than three quarters of respondents identified personalization and the delivery of efficient services as top priorities.
What this tells us is that when it comes to investing in technology, financial institutions cannot simply check a box. Any new technology deployment must lead to a more personal experience between the financial institution and its accountholders, and ideally provide a new value-added service or customized experience.
To help credit unions make the most of their technology investments, the study highlighted the following insights:
Credit unions should prioritize investing in advanced technologies like artificial intelligence (AI), machine learning, and data analytics to gain deeper insights into member needs, personalize services, and elevate the overall member experience. By integrating AI, staff can automate routine tasks, enabling them to focus on more complex issues that require critical thinking, problem solving, and interpersonal skills. AI tools and automation can swiftly address simple member queries, reducing wait times and alleviating pressure on frontline service employees. But it should never be implemented as a deflection strategy that makes it difficult to reach a human.
Technology can’t replace a relationship with a banker, but it can enhance it. Even with investments in technology, members will still require the expertise of a personal banker. While AI may be able to handle basic issues, digital tools can strengthen member-banker relationships by offering the ability to connect with a personal banker for more complex needs or enabling members to interact directly with a subject matter expert.
The efficient use of any new technology will require training of your workforce to make the most of the technology available to them. A well-trained workforce will ensure a smooth transition during digital transformation and lead to more efficient and effective service delivery.
These findings demonstrate the importance of meeting the evolving expectations of members through the delivery of digital experiences. The use of AI is an important tool in this regard, but there is a bridge to gap. More than 60% of those surveyed revealed that accountholders expressed dissatisfaction with their institutions’ current AI capabilities.
Whether communicating in-person or digitally, the engagement with one’s credit union must feel as familiar and trustworthy as talking to the same personal banker over a lifetime. The opportunity to get it right can have huge benefits, and there will be little tolerance for getting it wrong.
The magic is being able to create a more personal experience where the member is not at a branch yet still feels seen, heard, and understood. When credit unions can leverage past engagements and history and combine that with new value-added services, it leads to better overall interactions, retention, and brand loyalty. This translates directly to financial growth with members signing up for multiple accounts, including loans and long-term deposits, and carrying higher average balances.
As credit unions navigate the next wave of digital transformation, there’s clearly room for improvement and opportunity for growth. By understanding and addressing these insights, credit unions can enhance their member engagement strategies and ultimately achieve long-term success in an increasingly competitive and digital-first marketplace.
With close to 70% of financial institutions rating their current digital experience as only somewhat effective in meeting their accountholders’ expectations, this new era of technology presents an opportunity for credit unions to further differentiate themselves and gain a competitive advantage.
Matt Phipps is the Chief Marketing Officer of Agent IQ, a provider of digital engagement solutions tailored for the financial services sector.
