The 2024 credit union landscape is marked by both challenges and opportunities, as highlighted by our Chief Operating Officer, Mike Rouleau, during our “Cognitive Credit Union” roundtable at Dreamforce 2024.
Mike was joined by Jim Collins, Managing Director and Financial Services Industry Advisor at Salesforce, to host a panel of credit union leaders: Joe Thomas, Former Executive Vice President and Chief Information Officer at PenFed Credit Union; Ira Williams, Chief Retail Officer at BayPort Credit Union; and Mirella Reznic, Chief Strategy Officer at Valley Strong Credit Union. Also joining the panel was Tom Gersic, SVP of AI and Digital Business at Altimetrik.
The panel, each at different stages in their Salesforce journey, offered diverse perspectives on leveraging Salesforce for growth. They discussed how credit unions can thrive in 2024 and beyond by embracing the ‘cognitive credit union’—fully adopting digital transformation, data, and AI, while unlocking data’s potential and managing its risks.
If you’re looking to future-proof your credit union, these insights will help guide your next steps.
Missed the Dreamforce 2024 announcements? We’ve got you covered in our latest blog: Dreamforce 2024 Announcements: Financial Services Edition.
The Current Credit Union Landscape
With decades of experience in financial services, our COO, Mike, emphasized the critical importance of maintaining a strong, member-centric focus. Credit unions are uniquely positioned to leverage their “people helping people” message to achieve this. This ethos remains a key differentiator in retaining and growing member loyalty, particularly in an era where social and digital channels are becoming increasingly important.
Today, credit unions face the dual challenge of appealing to both baby boomers, who still make up 39% of their member base, and the emerging Gen Z population. Mike pointed out that while digital account opening for Gen Z has declined over the years, big banks have gained ground due to their superior digital capabilities. Credit unions must not only enhance these digital offerings but also focus on personalization to truly connect with members. Whether through tailored advice, reward programs, or real-time offers, personalization can turn engagement into loyalty. Finally, the integration of AI into core platforms will be crucial, not only for growth but also for managing risks such as member attrition.
With that in mind, we kicked off the panel by posing a key question to the credit union leaders:
What Does it Take to Succeed in Today’s Environment?
Get your Data Right
The panel emphasized the critical importance of getting your data right. Reliable, relevant data is the foundation for success. Mirella Reznic emphasized the point perfectly: “garbage in, garbage out.” Without strong data, credit unions can’t effectively focus on what truly drives member engagement and hyper-personalization.
The key to the industry’s future lies in driving hyper-personalization—creating meaningful, predictive interactions with members. And it all starts with data. Credit unions must ask themselves, ‘What data are we missing? What’s valuable? What needs improvement?’ Without the right data, the path to a personalized and predictive member experience remains out of reach.
Focus on Agility
Ira Williams emphasized the critical need for credit unions to remain agile. Adaptability is key to navigating rapid changes in technology and consumer expectations. He emphasized the value of fostering a continuous learning mindset, ensuring credit unions are not only staying ahead of trends but also implementing them effectively. Dreamforce, he noted, is a great place for cultivating this mindset, offering insights into emerging industry strategies.
Ira also highlighted the role of strategic partnerships in driving agility. By leveraging implementation partners, credit unions can respond swiftly to market demands and operational challenges. Also adding in learning from the success and strategies of other institutions, like Valley Strong is a key part of shaping future decisions and strategies.
Embrace AI and Compliance
Tom Gersic emphasized the importance of embracing AI, noting that while large data projects can often intimidate companies, AI offers a solution by allowing credit unions to harness unstructured data for faster, more effective decision-making and personalization. Instead of spending years organizing data, AI enables real-time financial product recommendations and marketing campaigns, with some institutions seeing a 40% improvement in insights.
At the same time, Tom highlighted the need to balance speed with security and compliance, especially in the highly regulated financial sector. Ensuring secure, reliable member interactions—whether through digital channels or in-branch—is critical. Additionally, investing in talent development and employee retention is essential to fully unlock AI’s potential and improve both member and employee experiences.
How can Credit Unions Drive Change in this Digital, Data, and AI-first Era?
The panel highlighted four key areas that credit unions should focus on to drive change in digital, data, and AI.
1. Just Get Started
As Mirella put it: “It’s a tough question to answer because I don’t think every organization is ready for it… but you need to do it. If you don’t start, you’ll never get there.” That sentiment was echoed across the panel—if you don’t start, you’ll fall behind.
Credit unions need to assess their readiness for transformation, but more importantly, they must be willing to take the leap, even if they don’t feel fully prepared. Leadership should be transparent about both the challenges and rewards of digital transformation. The key message from the panel: just start.
2. Align Your Stakeholders
Synchronizing stakeholders from different departments—data, AI, digital, and member experience—is crucial. Without alignment, efforts can be undermined by competing priorities. Ira emphasized the importance of getting teams aligned: “You need to have everyone on the same page, including your IT team. We’ve faced some challenges with old mindsets versus new ones, but it’s crucial to bring everyone along and demonstrate the value these changes can deliver.”
Joe Thomas, with 25 years of industry experience, stressed how critical it is to have tough conversations across the organization to get everyone aligned.
3. Set Clear Strategic Goals
Having defined goals, like improving member experience and driving growth, keeps the organization focused and aligned during digital transformation efforts. Ira emphasized: “We always keep our North Star in mind. Some call it a strategic plan, but for us at BayPort, it came down to three things: improving member experience, enhancing operational efficiency, and driving growth.”
Credit unions have always been about helping people, improving member experience, and unlocking new ways to engage with their communities. To drive meaningful change in 2024, credit unions must align their strategic plans and incorporate technology.
4. Choose the Right Implementation Partner
Partner with experts who can guide your credit union through the technical and strategic challenges of adopting new technologies like Salesforce and AI. As Mirella emphasized, ‘Selecting the right SI partner is critical, especially if you don’t have that expertise from the start.’ The choice of partner will have a significant impact on how well your credit union is set up for long-term success.
“Every project hits bumps in the road, but when you’re working with your SI as a team, you accomplish so much more. The Zennify team has been amazing, and their alignment helps us overcome challenges to achieve the best outcomes for the end user. At the end of the day, we never lose sight of why we’re implementing these tools — to enhance both the team and member experience.”
– Mirella Reznic, Chief Strategy Officer, Valley Strong Credit Union
How Can Data Be Leveraged to Balance Both Risk and Reward?
Finally, to round out the panel, the pressing question was how to manage the risks associated with data. While it’s clear that credit unions need to embrace data, the challenge is doing so while mitigating risks. Tom provided practical tips for credit unions to take:
Tip 1: Leverage Data to Identify and Reward Top Members
- Repurpose threat detection tools to analyze member behavior and identify top-performing members.
- Use insights to create personalized offers and rewards, deepening member engagement.
Tip 2: Strengthen Data Governance for Ethical AI Use
- Establish clear policies for ethical data and AI use, building trust through transparency.
- Train staff to follow governance policies and ensure responsible use of member data.
Tip 3: Prepare for Economic Shifts with Scalable Technology
- Invest in scalable platforms like Salesforce to quickly adapt to changing economic conditions.
- Use data to optimize operations, streamline processes, and stay agile in fluctuating markets.
Enter: The Cognitive Credit Union
According to Jim Collins, “credit unions are the fastest growing financial services vertical”. The truth is, credit unions are leveling up to stay ahead in 2024. It’s no secret that banks are investing immensely in technology, and credit unions need to do the same–and embrace ‘the cognitive credit union.’
Being a Cognitive Credit Union means not just adapting to change, but leading it. It’s about harnessing the power of digital, data, and AI to create hyper-personalized, predictive member experiences. By building a strong data foundation and using AI-driven insights, credit unions can anticipate member needs, optimize engagement, and foster deeper loyalty.
“When I think about the cognitive credit union, it’s all about being hyper-personalized and predictive—anticipating member needs before they even know them.”
– Joe Thomas, Former Executive Vice President and Chief Information Officer, PenFed Credit Union
Are you ready to embrace the cognitive credit union? We’ll help you get there. LEARN MORE
