Credit unions are experiencing pressure from a multitude of sources and can no longer rely solely on traditional methods and technology. From an ever-changing regulatory environment to meeting the digital demands of members to keeping bad actors away, credit unions are fighting to keep pace with the rapid changes brought on by the Fourth Industrial Revolution.
When it comes to relationship building, credit unions are known as leaders in the financial services industry; however, many members are frustrated with antiquated methods to confirm their identity. Whether it’s a personal identification number (PIN) or a series of personal questions, the financial services industry has long taken cumbersome and time-consuming measures to verify identity.
Topics: Digital Experience
When executives in the financial services industry enter into a discussion about blockchain technology the first question generally asked is: “Why should I use blockchain technology?” This question is quickly followed by, “Why should I trust blockchain technology?”
Executives and businesses succeed when they ask better questions.
Perhaps, the better question is “What can the industry use this technology for, now that blockchain is becoming a ‘common’ technology?”. Currently the most effective use of blockchain relates to areas where a group needs to be able to trust something – but can’t agree on a centralized place they can all trust.
In general, the credit union industry has an interesting relationship with blockchain. A year ago, industry leaders in distributed ledger technology were answering “is this bitcoin?” questions. Now, there is a much broader general understanding of blockchain technology. In particular, certain innovative chief technology officers (CTOs) and CIOs who do “get it” no longer mention “blockchain” early in our discussions. Rather, and more interestingly, they are talking about a digital banking strategy that may include blockchain technology. At this point, a CTO looking for blockchain technology is like a hammer looking for a nail.