Orlando, FL – June 15, 2015 – As mid-year approaches, credit unions that may be dealing with data threats and limited employee-resources may be seeking innovative ways to boost their profit margin and end 2015 successfully despite their obstacles. According to a recent Callahan & Associates’s study on U.S. credit unions, it was determined that technologically strong credit unions are able to operate more profitably than its similar-sized peers as a result of more streamlined and efficient operational models (2015).
Better efficiency equals increased revenues. Credit unions can boost productivity by executing these three (3) key strategies that will ensure they will not only finish the year with success, but become more profitable than past years.
Sadly, data breaches are inevitable in today’s economy. The 2015 Verizon Data Breach Investigation Report confirmed that the top three (3) industries most affected were: public, technology/information, and finance (Santillan, 2015). While large banks may have the manpower—a multitude of employees and time—to perform the large job of hot carding, notifying, reducing the spending limits, and reissuing new credit cards to all of their customers, a tedious process requiring mass data entries and updates, data automation software will efficiently automate this process for credit unions. Having the right technology to expedite this process when disaster strikes ensures customers have access to their accounts within days of the occurrence. While cybersecurity is starting to be recognized as a critical aspect of any merchant and business, still, it was found that 28.5 percent of all data breaches were attributed to point-of-sale attacks (Santillan, 2015). While it is not a future any financial institution wants to imagine, it may not be that far-fetched. Credit unions should be prudent in being prepared with a data automation software if cyber-attacks cannot be prevented. Without data automation software, a credit card breach can be financially damaging for a credit union.
Automating business processes and banking transactions allows credit unions to provide more and better services with the same or fewer resources. Most credit union services can be automated with data automation softwares, such as Foxtrot, the technology created by EnableSoft. These types of tools can automatically perform the manual, repetitive data entry actions that are normally performed by employees, such as create and maintain accounts, automatically charge account fees, and send customer notifications. Large financial institutions profit from the abundant employee head-count available to process banking services, while smaller credit unions have an employee deficit. Using a data automation software to automate lengthy banking processes empowers credit union employees to engage in customer relations and interactions, providing for a pleasant experience for their customers and a quick financial turnover. In fact, statistics from the Callahan & Associates’s study revealed that technologically strong credit unions—meaning those that employ technological options to improve their business transactions—increased the value of its member relationships faster than both its asset-based peers (less than $100M in assets) and larger $100-$250M-asset peers (2015). Providing quick and expedient services through data automation software puts credit unions a step ahead of larger banks when offering either the same or better services, but also the small-town feel of a credit union.
While many credit union members enjoy the friendliness of a smile and the, “hello,” they receive when going into credit unions, in order to fuel member growth, and service a large demographic, credit unions must support efficient and effective online financial services. If credit unions are to cultivate new customers, they must offer a full suite of online financial services. Data automation software enables credit unions to integrate their online financial services, from their internet banking system, with their other applications and core system in order to update and maintain data applications and execute banking actions quickly and accurately. Customers receive a quick response. Automation frees up staff, adds more consistency to the application process, and allows the credit union to serve more members – this translates into more products, better rates, and a better bottom line (My Credit Union, 2006). Consumers have heightened expectations and desire “real-time” capabilities from online services. With limited employee-resources, credit unions will not be able to compete with large financial institutions in offering the strong digital services that customers demand without using data automation software. In the 21 Century, any business that does not offer or have automated online services will not remain in business for long.
The long term success of a credit union is predicted by wise allocation of resources for future growth. Investing in a data automation software ensures credit unions are able to offer numerous, faster services, enrich their member’s experience, and grow in customer number and revenues.