By John San Filippo
The credit union industry faces an ongoing challenge of digital transformation, requiring more than just technology investments. True transformation requires a cultural shift and a deep understanding of how digital tools can best serve members and the organization. Filene Research Institute, a think tank dedicated to the credit union space, aims to address this challenge with its new Center of Excellence: Design for Digital.
Jessica Gamache, head of research at Filene, recently discussed the initiative with Finopotamus, offering insights into its development, goals, and success metrics.
Filene’s Three-Pronged Approach: From Insight to Impact
Gamache explained Filene’s structure consists of three core teams: Research, Incubation, and Advisory. Her team, Research, conducts foundational work, exploring key trends and challenges impacting credit unions through Centers of Excellence. The Incubation team tests new ideas and fintech solutions within credit unions, while Advisory consults directly with credit unions and system partners, leveraging insights gathered by the other teams. This ensures research translates into practical applications and tangible benefits for credit unions.
The Need for Design for Digital
The Design for Digital Center of Excellence emerged from a recognized gap in the industry, she noted. While digital transformation has been a recurring theme, many credit unions struggle with effective implementation. “If you ask anyone about digital transformation,” Gamache stated, “this has been a topic of conversation for now decades.” She emphasized that Filene’s conversations with credit union executives revealed a need for fresh, practical approaches, prompting the development of a center dedicated to tackling this complex issue.
“Credit union executives need a new way of thinking about digital that doesn't exist in the space.” She continued. “Right now, there's a lot of frustration. There are a lot of failed transformations. We wanted to make sure that we were really highlighting – that this is something credit unions will be focused on.”
Collaboration at the Core
The Design for Digital program thrives on collaboration, incorporating input from sponsors, an academic fellow, and Filene’s internal team, she explained. Sponsors, primarily credit unions and some system partners, fund the research and provide input based on their needs and experiences, ensuring the research addresses real-world challenges.
Dr. Jerry Kane, professor and department head of MIS at the University of Georgia, serves as the academic fellow leading Design for Digital. His extensive experience in digital transformation, particularly within legacy organizations, is invaluable, Gamache noted. “He has a wealth of knowledge and experience in the space.” Dr. Kane’s focus on organizational aspects like leadership, culture, and talent management – often overshadowed by the technology itself – reinforces the holistic approach crucial for genuine and sustained transformation.
Gamache highlighted the alignment between Dr. Kane’s approach and the center’s objectives, stating that his focus on “the leadership and culture and talent and change management side” directly addressed “what the sponsors were seeing as their needs for the center.”
Charting the Course: Surveys, Strategies, and Measuring Success
Currently in its early stages, Design for Digital will commence with a benchmarking survey to assess the digital maturity of credit unions. Covering various aspects – from digital strategy and leadership to talent, member experience, and cybersecurity – the survey’s results will inform Filene’s priorities throughout the three-year program.
Recognizing that transformation is an ongoing journey, Gamache explained Filene’s unique approach to measuring success. “What matters to us is that we feel like we’ve made a meaningful impact in the space,” she stated. Filene looks for tangible change within individual credit unions with the goal of creating industry-wide progress.
Design for Digital represents a significant step for credit unions as they navigate the complexities of digital transformation. By emphasizing practical solutions, fostering collaboration, and prioritizing meaningful impact, Filene empowers credit unions to not merely survive, but thrive in the digital age.
“We really think this topic is the right topic, for right now,” added Gamache. “It won overwhelmingly in its round of voting.”