In recent years, the internet has emerged from a situation where it was simply a facilitator for the protagonist condition. Today, work and personal relationships are built every day based on technology, and this includes cooperatives’ financial and banking services. But what is the role of a credit union in this scenario?
In this article, we will explore the trends of the cooperative market in the digital age. Banking providers are inserted in a competitive context and therefore need to be aware of the news, seeking to innovate and evolve constantly. Thus, there is a tendency for major changes in customer service, processes and relationships with customers.
Want to better understand what can change in a credit union in the digital age? Keep following the content!
What are credit unions and why were they created?
Credit unions, also called financial cooperatives, are associations of people of their own form and legal nature, not subject to bankruptcy and not for profit.
When a group of people creates a credit union, their goal is to provide services and provide credit to their members in a simpler and more advantageous way.
In other words, cooperativism is an organization format used by society to solve the most common common problems related to everyday life through mutual help.
By uniting their efforts into a collective enterprise, individuals get better results and perform actions that are unlikely to be achieved on their own.
One of the most common problems for entrepreneurs and small business owners is access to financial services such as credit and loans that are compatible with their needs and financial situations. Especially in this context, credit unions emerge as an appropriate solution to the problem.
What is digital transformation and how is it impacting companies?
Digital transformation is a process in which institutions use technology to increase their brand reach, ensure good results and improve their performance. In this shift, companies enhance – or dramatically change – their business models to harness the full potential of existing technologies.
As a result of this evolution, the projects generate value for their customers, partners and shareholders, expanding increasingly positive results in all areas.
Digital transformation also involves customer service and the constant search to meet their needs. But its main focus is the use of technologies that make it possible to conduct business in the best way possible.
Technology today is able to reconfigure different sectors of the market and offer them numerous benefits. Unlike in times past when innovations served as support for existing products and services, today technology is seen as the starting point for creating new solutions.
A worldwide subject, digital transformation has also been present in the innovations here in Brazil. According to a survey by the SAP Digital Transformation Executive Study, 56% of Brazilian businesses aim to achieve 5.1% to 10% revenue growth in 2018 after putting digital transformation into practice.
Part of this accelerated mindset shift comes from the fact that some leading organizations have already embraced digital transformation for some time. Thus, the other companies should be after the injury.
What are the credit union trends in the digital age?
There are numerous trends for a credit union in the digital age. Here are some of the key transformations that are being implemented.
Using online platforms
This feature is among the most notable trends of credit unions in the digital age. With the considerable improvements in the quality and safety of the mobile internet and the increased use of smartphones and tablets, institutions that are not present in the customer’s palm will be left behind.
However, you must understand that online platforms must offer features and features that make them interesting and advantageous.
More than providing an online platform for those who are already customers, there are credit unions in which interested parties can become cooperative through the internet. In this case, the registration is completed after sending a series of documents. From there, there is the release of investments.
Although no new, manual procedures are rooted in working models of organizations, including credit unions, tend to be automated.
Examples of activities that can be performed automatically are financial management software, precisely because they are solutions that facilitate routine and allow automation.
In this context, another technology worth mentioning is “virtual assistants”, also known as chatbots. In short, the technology is based on talk robots. They dialogue with customers in order to solve their problems and doubts, speeding up the service.
Among all the trends that can be implemented by credit unions in the digital age, blockchain has the most potential.
By applying this technology, the institution completely changes the way information is stored and protected. Blockchain reliability is extremely high because this measure has data decentralization as a security premise.
This means that financial information is not stored on a single server, but on hundreds of computers that are part of the network, forming a kind of “block chain”.
As we saw in this article, a credit union in the digital age tends to take advantage of the advantages that technology offers. However, this is done without losing the spirit of unity and collaboration that characterizes this type of institution.
Thus, members can enjoy the most practical and modern and still have all the advantages that only a cooperative offers.