Data has always been an important asset, but today it is indispensable. Understanding new consumer attitudes and behaviors and controlling the use of this data – the psychographic information currently being disseminated across your many systems and platforms – is key to anchoring your operation as a nexus of community commerce. Your institution and the communities you serve will thrive if data control is at the heart of your strategy.
The chief data scientist of a Silicon Valley app developer once told Shoshana Zuboff, a professor at Harvard Business School and Harvard Law School, and author of the book “The Age of Surveillance Capitalism: The Fight for a Human Future at the New Frontier of Power”. “The goal of everything we do is to change people’s real behavior on a large scale. When people use our app, we can capture their behaviors, identify good and bad behaviors, and develop ways to reward good ones and punish bad ones. We can test how exploitable our signals are for them and how profitable they are for us. »
Big Silicon Valley tech companies have bluntly admitted to using data to control consumers, and knowing their widespread user base, that data is used to reach the communities you serve. Burgeoning industries, including food and grocery delivery, all forms of retail, and even the physical act of transportation, have swapped their old world of physical retail for digital chic. Banks and credit unions are not immune to the changing consumer expectations that these experiences create.
In a world of virtual community and, crucially, digital commerce, will your credit union remain relevant, capable of fueling democratic, fair and local community commerce? Modern financial institutions have the potential to be the epicenter of countless digital interactions in their communities. Recent Bank of America survey results revealed that out of 1,000 customers (digital asset owners and potential digital asset users), 91% of respondents said they intended to buy crypto -currency over the next six months. This is just one example of how the banking world has ignited with news of those interested in the future of faster, safer and more valuable money and payments – systems that keep the electronic dollar alive.
Why is this statistic so significant? If your institution surveyed your members right now, would you be able to get a 91% “yes” for intent to use channels like online, mobile, and bill pay? Trust, like many aspects of the Internet, is being decentralized. Declining confidence in institutions – government and financial, including large national banks – is an important data point that can reinvigorate your strategic roadmap, operational priorities and ultimately how your operation integrates your members, community organizations and local businesses digitally. In the aftermath of the 2008 financial crisis, faster, more affordable, secure and transparent tools for storing and moving assets and wealth have become available. Bitcoin is a 13-year-old successful proof of concept demonstrating that money, value, and assets can be stored, moved, and used around the world without depending on institutions.
Is your credit union seeing these payment and deposit trends leaving your institution in favor of distributed digital asset networks? Do you have a strategy, operational design and technology to protect a flank – potentially 91% exposure! ?
Today’s financial climate is clear; consumers will place great importance on their trusted local financial institution in these digital marketplaces. Given current events such as instability at major exchanges and spikes in new crypto users and wallets with active balances, there is an immediate (revenue-generating!) opportunity for credit unions to focus on Safeguard members’ digital assets, if they take simple steps to prepare for operations. to safeguard these digital assets as a trusted, local, democratically structured and decentralized institutional partner.
While our industry remains committed to legacy operational systems and thinking, data tells us that your consumers are downloading these digital wallets and financial services apps that don’t require minimum balances, high-balance loans, membership in term or “portfolio sharing” in exchange for loyalty or reward. Instead, they welcome your consumers into the “future of money” by allowing them to buy and sell digital currency, give your members their paychecks two days early, offer low-cost micro-loans, personalize credit card rewards, expand Buy Now, Pay Later services at local merchants, and help your community members build good credit. As these new networks of monetary exchange and storage of value grow in popularity and go viral, traditional dollar-focused institutions will likely find themselves struggling with relevance as the problem of trust and the problem data converge.
Are you ready to compete effectively in the silver metamorphosis? How can your credit union strategically insulate itself in the age of digital money disruption? How are you contributing to the merger of money and financial services with the Internet?
Transform your legacy core processing into modern digital consumer interactions, maximize the return on investment you’ve made in your core, and eliminate the need to trade your valuable data for third-party solutions. With a modern strategy, operations transformed for the digital age, and simple tools to embrace the digital world, dozens of new opportunities will emerge. Cryptocurrencies, DeFi, distributed ledgers, and localized monetary data innovations will catalyze your local economies, and relevance is its own reward. These new market-oriented capabilities will also pay dividends internally, reducing costs, increasing efficiency, delivering new asset classes and reinventing merchant/bank relationships – while protecting against risks to global economic stability and inherent in centralized and struggling forms of money. .
Are you ready to design your credit union’s long-term strategy to control data, channel growth and maximize efficiency? We know the answer is emphatic: yes! And that’s how we define relevance.
Jessica Fungemia Communications Director DaLand CUSO Rocky Hill, Conn.