Just as 2022 was poised to increase stability and purchasing power after a few years of pandemic-fueled volatility, we saw record highs in inflation rates, as well as ongoing labor and supply shortages.
With this potential for continued turmoil as we move into the new year, we wanted to talk about some of the banking trends we see gearing up for a big year in 2023. From multi-cloud banking to analytics and other technology upgrades, here are some of the most touted digital credit union services poised to dominate in the coming months.
Application Modernization & Repatriation
The last several years have brought about a renaissance for credit unions to suddenly have embraced more modern digital solutions and technology. The use of apps is not a new practice, but the digital credit union services that are being hosted or run through these apps may have changed drastically for your credit union since 2020.
And the theme for 2023 in digital banking trends seems to be “renewal.”
Many credit unions and financial institutions are heading back to those recent digital upgrades and auditing or augmenting them for their current member needs. Many technologies were implemented hastily, in an as-is fashion. “We’ll go back after the pandemic and improve them,” we said.
Now is that time. Are your credit union apps and other digital services optimized for 2023? There are several ways to examine this.
The first is to take a look at how many updates have been pushed through to those technologies and what those updates were for: did you improve usability? Security? Have you fixed any bugs or slow-loading pages in these online or mobile solutions? Now’s the time to take a look at what value your newly implemented technologies still hold for your members.
A 2022 report showed that 99% of financial services organizations are modernizing apps in the next year.
Another app-focused trend in regard to digital credit union services includes app repatriation. App repatriation (and cloud repatriation as a whole) is the practice of reclaiming apps (or other data and software) from a public cloud and putting it back onto local servers.
This is being done partially due to rising costs in cloud computing and software, and also because these apps perform more efficiently when hosted on local networks instead. Though there are several drivers in the move to repatriate apps, it’s continuing to gain momentum as an industry practice as we head into 2023.
As some financial institutions are moving certain data and apps out of the cloud, many others are working through the kinks that come with multi-cloud banking integration.
Data privacy and accessibility are the main drivers for the move to multi-cloud banking. With a multi-cloud approach, your credit union can benefit from vendor diversification, improved performance, and cutting-edge updates and capabilities.
According to Data Science Central, the top benefits of multi-cloud banking include:
- Operational consistency
- Regulatory compliance
- Data security
Balancing Security & Performance
The importance of maintaining great cybersecurity solutions for your credit union as well as optimizing member performance can sometimes leave your CU’s leaders feeling like this is one balancing act that you can’t ever get 100% right.
As we move into the new year, digital credit union services are being audited for their security and their user-friendliness, though these two practices are often at odds with each other.
Two-factor authentication is always going to be safer than using a simple username and password, but it also makes the member experience a bit more frustrating. Straddling both worlds is tough, but digital transformation is all about creating forward momentum with the best digital solutions. In fact, one-third of decision-makers in the banking industry say they would trade some of their security for a small (less than 25%) increase in performance for member-facing technology!
Implementing low-friction tools like IMS’s backup, disaster recovery, and compliance solutions can help keep your vulnerabilities low and your members happy with their low-friction experience.
Emphasis on Analytics
If data is the key, then analytics is the house that it unlocks. There are tons of possibilities for insights and growth in each data set, depending on how you choose to arrange and analyze it.
There are tons of digital credit union services that would benefit from your own credit union’s deep dive into what your member and operations data can tell you. Big banks can often follow larger trends with ease, but your CU’s member base may have specific needs that aren’t being met – you may be literally sitting on opportunities that you haven’t discovered yet – and they’re just hidden in your data, waiting.
Advanced analytical tools can assist you with data discovery, compliance, visualization, and more. There are many data opportunities that can be turned into profitable insights, help you streamline your internal reporting, improve lending assessment processes and accuracy, and even identify more risk indicators.
You can improve your credit union’s loan performance by leveraging industry insights with the data from loans you are approving, collecting on, and rejecting.
Up Your Analytics Game for the New Year with Data Discovery from IMS
Simply possessing data doesn’t help your credit union. Your ability to analyze and interpret that data, however, can offer a comprehensive and insightful look into member behaviors, issues, and preferences.
IMS offers data discovery help through the IMS DataArchiver, a data management system delivered as a SaaS solution for your New Year’s goals. It offers on-premise and IMS cloud storage, ransomware protection, data compression and de-duplication, all within a customizable, user-friendly UI.
A new year often means new technology opportunities. What are you waiting for? Reach out to us today!