Day 3 of CUNATech 2023

Day 3 of CUNATech 2023 was dedicated to exploring the frontier of technology in the credit union space. As with most conferences these days, there was a lot of content on Artificial Intelligence (AI) along with the importance of human-centric design, and the strategies for attracting younger generations to credit unions. As attended the various sessions on these compelling topics, I heard from industry leaders, AI experts, and innovators who are at the forefront of this exciting journey. Let's dive in.

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The first session laid the groundwork for understanding how AI is revolutionizing credit unions, from member services to back-end operations.? One of my favorite speakers and one of the most innovative people I've had the privilege to work for, @JohnBest served as a moderator of the session:

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Navigating the AI Frontier: Transforming Credit Unions and Empowering Members

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The rapid advancement of artificial intelligence (AI) is transforming industries across the board, and the credit union space is no exception. Moderated by John Best, the diverse panel included @SaroopBharwani of #CUCopilot, @KathySianis of #Posh, and Joey Rudisill of #CentralWillametteCU. They engaged in a lively discussion around the AI landscape and its implications for credit unions.

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A key theme was AI's potential to greatly empower credit unions to provide more personalized, efficient services to members. As Saroop explained, AI-powered chatbots and virtual assistants can interact with members to handle basic queries and transactions, freeing up human employees for more complex, high-value interactions.

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The panelists also emphasized how AI is transforming back-end credit union operations. For instance, AI can automate manual processes, analyze data to identify insights, and enhance security and compliance. "AI allows us to scale our capabilities and strengthen our risk management in ways we couldn't dream of before," said Kathy.

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However, the panel cautioned that while adopting AI is crucial for credit unions, it must be done thoughtfully. As Joey emphasized, "The key is integrating AI seamlessly into the member experience and using it to enhance human connections, not replace them." Issues around data privacy and algorithmic bias were also raised.

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Overall, the panel provided keen insights into how credit unions can navigate the AI landscape. From chatbots to process automation, AI offers immense opportunities to provide next-level service quality to members. But credit unions must approach AI adoption strategically, always putting member needs first. With the right framework, credit unions can harness AI's power to transform member experiences and future-proof their operations.

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The first session laid the groundwork for understanding how AI is revolutionizing credit unions, from member services to back-end operations. But how are these technologies being implemented in real-world scenarios? In the next session, and perhaps my favorite one of all was a Hands on session on AI.? A Panel of 3 credit union leaders took us behind the scenes to explore actual use-cases of generative AI in credit unions. I was inspired by real-world implementations that are already making a significant impact in these credit unions.

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Hands-On with AI: Credit Unions Take the Lead

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The energy was electric as credit union innovators took the stage to reveal how they are utilizing generative AI within their organizations. This session promised more than just talk – it was a front-row glimpse into real-world AI implementations that are revolutionizing operations. The presentations showcased compelling journeys of early AI adoption, demonstrating how tools like ChatGPT have already made a tremendous impact in a short period of time.

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@ThomazDeMoura of? #DigitalFederalCreditUnion discussed their use of generative AI for member training through an AI-powered knowledge base. By leveraging #ChatGPT3.5, they created a virtual assistant to provide information about products and services, knowledge base articles and policies. Using their internal communications platform #MicrostofTeams has significantly improved their response times and quality of responses to their members.

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@ScottMaronic of #PSECU shared how they are using #Microsoft #OpenAI API to analyze member feedback and comments to discern sentiment and connect insights to #PowerBI, a robust Analytics platform.

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@JoeyRudisill of #CentralWillametteCU highlighted their “skunkworks” approach where new tools like generative AI are vetted in innovation environments.? By prototyping and proving value in standalone environments first, they can then bring the most promising applications into the mainstream once proven.? His application was used to drive initiatives like the next best product and added hyper-personalized messaging crafted for their members.

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The presentations sparked lively Q&A discussions on topics like scaling AI across large organizations, governance considerations, and exciting future applications. It was an insightful glimpse into the art of the possible, with credit union peers generously sharing their firsthand experiences in applying cutting edge AI in practical ways. I was inspired to explore ways these tools could transform their own operations and better serve members.

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While AI offers incredible opportunities for automation and personalization, the human element remains crucial in the financial sector. My next session shifted the focus from technology to the people it serves. "Improving the Member Experience Through Human-Centric Engagement Design" explored how credit unions can use empathetic, user-focused design to create experiences that resonate deeply with members.? The speakers, @MattKallman and @KevinPolinsky from #TruStage, used nostalgic 90s music as an analogy for tuning into members' needs.

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“You Got What I Need" - The Power of a Human-Centric Engagement Design

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Some principles of member-centric design that were highlighted:

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Easy, simple, 24/7 services with no waiting

Individualized, tailored experiences

Mobile accessibility

Examples of innovative implementations were shared, like #TruStage's Lab which experiments with cutting-edge features and their 2-minute account opening process which gained major traction.

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An interesting point was that credit unions should view companies like Delta as their real competition when it comes to exceptional digital experiences. The goal should be making each member feel uniquely valued, almost like "1 in 1 million."

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Concepts like the #Dunning-Kruger effect were also discussed, where those with less knowledge may overestimate their abilities. This related to avoiding assumptions and truly empathizing with members' needs.

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Overall, it was an insightful session on the importance of human-centric design. By tuning into members' true desires and aligning experiences accordingly, credit unions can drive greater satisfaction, loyalty and connection.

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Having explored the importance of human-centric design, it's time to circle back to AI, but from a leadership perspective. In the next session, @ErikQualman, bestselling author and technology and leadership expert, delivered an insightful keynote on how organizations can harness the power of artificial intelligence (AI) to drive innovation and growth. Donning a pair of bright green glasses and an engaging

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The Age of AI: How to Lead and Innovate in the Era of Artificial Intelligence

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Qualman began by addressing a common concern - "Is AI going to take my job?" He explained that rather than replacing jobs, AI is making us more productive by automating routine tasks. This allows us to focus on more meaningful work. Qualman gave an example of a "10X programmer" - with AI, a programmer can achieve 10 times more impact.

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He shared his principles for organizations to maximize AI:

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Digital STAMP=Digital Footprints + Shadows (What other people post about you)

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Simple

True

Act

Map

People

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Simple - Remove Friction

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True - Build digital trust and transparency.

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Act - Accept failures on the road to success. Qualman advised to "fail fast, fail forward, fail better." Through iterative improvements, we get to success.

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Map - Be firm in your destination but flexible in the path. Pioneering means expecting pushback but persisting.

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People - Surround yourself with the right people, online and offline. Qualman encouraged endorsing people and focusing on relationships.

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In summary, Qualman provided an entertaining and empowering vision for organizations to embrace AI. By automating routine work, enabling innovation, and focusing on people, companies can drive growth and compete at new levels. The future is bright when we harness technology's potential while keeping human values central.

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As we look toward the future, attracting younger generations becomes imperative for the growth and sustainability of credit unions. In my final session for the day, the speaker delved into the strategies credit unions can employ to resonate with Millennials and Gen Z. It's a fitting conclusion to a day focused on the future, technology, and the human element that ties it all together.

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The Speaker, @ShawnMelamed, CEO and Co-Founder of #Spiral gave an engaging presentation full of data and meaningful content in a topic that I feel is missed a lot by credit unions.

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Captivating the Next Generation: Attracting and Retaining Millennials and Gen Z in Credit Unions

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Credit unions face a major generational divide. While older generations make up most of their membership and deposits, younger generations prefer large national banks. With over 50% of the population now Millennial or younger, credit unions must update strategies to attract these tech-savvy generations. The $73 trillion generational wealth transfer provides a huge opportunity for credit unions to grow by better meeting the needs of Millennials and Gen Z.

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Key Characteristics of Younger Generations:

Millennials and Gen Z share many attributes that differentiate them from older generations. Both groups are highly tech-savvy and convenience-driven. They seek personalized digital experiences, are open to new financial tools, and desire brands that align with their social values. While Gen Z grew up fully immersed in digital technology, Millennials came of age along with the internet and social media. With different life stages, Millennials focus more on stability while Gen Z has an entrepreneurial spirit.

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What Younger Generations Want from Financial Institutions:

Research shows younger generations have different priorities than their elders when banking. Top needs include finding jobs, saving money, repaying debt, achieving financial stability, and purchasing major assets like homes and cars. Their desired banking activities lean heavily digital, like viewing balances, transferring funds, and paying bills online. Peer-to-peer payments, chatbots, credit score checks, and budgeting tools appeal more to Millennials and Gen Z compared to older generations.

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Strategies for Credit Unions:

To attract younger members, credit unions must tailor offerings to match their preferences. Providing digital account opening, feature-rich mobile apps, on-demand customer support, and hyper-personalized experiences is now essential. Social media outreach and cause-based marketing can cost-effectively target younger generations. Credit unions should highlight community impact initiatives on channels like #TikTok and #Instagram. Partnering with #fintechs can accelerate innovation in areas like micro-investing, alternative lending, and "Buy Now, Pay Later".

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The key is resonating emotionally with younger generations. Solutions that simplify their financial lives, speak to their values, and create meaningful impact will inspire loyalty and bring long-term growth. Credit unions that embrace this transformation will thrive amidst the coming generational wealth transfer.

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By focusing on convenience, personalization, digital channels, and social values, credit unions can overcome generational divides. Millennials and Gen Z represent the future, so credit unions must adapt quickly to attract them as members. With the right strategies, credit unions can leverage their community orientation and tap into abundant growth opportunities.

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One of the questions I continue to have is when and whether changes to accommodate the younger generations is coming to our digital banking experiences.? I have yet to see a fully fledged differentiator yet, but I hope that it's coming.

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Day 3 of CUNATech 2023 was a whirlwind of insights, innovations, and invaluable discussions that spanned the gamut from the transformative power of AI to the essence of human-centric design and the urgency of attracting younger generations to credit unions. The day served as a microcosm of the broader challenges and opportunities that credit unions face in this rapidly evolving digital landscape.

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As I wrap up the day and the last of my sessions, the question that lingers is not whether credit unions should adapt to these emerging trends and technologies, but how quickly they can do so effectively. The roadmap has been laid out and now it's up to each credit union to navigate this terrain thoughtfully and decisively. The future is not just about adopting new technologies, it's about integrating them in a way that aligns with organizational values and member needs. Those who manage this intricate balance will not only survive but thrive in this new age.

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#CUNATech2023 #FutureReady #AI #HumanCentricDesign #Millennials #GenZ #DigitalTransformation