We recently sat down with three credit union leaders to get their take on their credit union’s journey to a digital-first approach. All were at different stages of their transformation and shared advice for others looking to take that leap.
While digital banking is now an expectation, many credit unions must balance modernization with their traditional, relationship-driven service model. 48% of the credit unions surveyed felt that their institutions were on the right track to being digital-first, which is a good sign. But the key to success lies in leveraging digital tools to enhance—not replace—the personal connections that define credit unions.
The digital shift & member expectations
For many credit unions, the shift to digital-first operations is not just about technology—it’s about strategy. Leia Ragland, AVP, Marketing and Business Development at Legacy Credit Union emphasized how they reassessed their growth trends, noting that online applications outpaced in-branch activity. As a result, Legacy transitioned to a "digital branch" model, investing in user-friendly online experiences and targeted digital marketing.
However, not all credit unions can or should take the same approach. Alison Cooke, CEO, ACIPCO Federal Credit Union, primarily serves a local plant workforce, recognized that while younger employees expect digital capabilities, many of their members still prefer in-person interactions. Their focus is on integrating digital tools to enhance efficiency while maintaining their traditional service model.
AI & automation: The future of credit union operations
While AI is often discussed as a futuristic concept, many credit unions are already benefiting from automation. Cooke shared how ACIPCO enabled auto-decisioning and remote deposit capture to significantly improve efficiency, and reduce staff workload while enhancing member experience. This highlights an important distinction: AI isn’t just about chatbots and predictive analytics; it can also optimize operations behind the scenes. In an online survey, 71% of credit unions reported they do not have an AI strategy.
Nadine Hohnke, AVP Member Experience & Product Development from Public Service Credit Union stressed that while they have an AI strategy, they are still in the early stages of exploring its full potential. Their focus has been on AI-driven insights to personalize member interactions, such as using predictive analytics to offer real-time financial guidance. She noted defining what AI means for each credit union and taking a phased approach to implementation is critical.
Data-driven personalization: The heart of member engagement
Credit unions have a wealth of member data, but effectively utilizing it requires a structured strategy. Notably, 66% of those polled shared they are leveraging data for member engagement. Hohnke highlighted how Public Service Credit Union centralized its data to power hyper-personalized marketing and onboarding experiences. By using AI-driven insights, they moved beyond transactional relationships to a more contextual banking model.
One small change—moving a financial wellness widget to the main digital banking dashboard—resulted in a 600% increase in engagement. This underscores the power of simple, data-driven design choices in enhancing member experience.
Challenges & practical advice for credit unions
While the benefits of digital transformation are clear, the journey is not without challenges. Ragland pointed out that transitioning from a transactional to an engagement-focused model requires a mindset shift. It’s no longer just about providing good member service—it’s about delivering seamless, intuitive experiences across all touchpoints.
For those just beginning their digital shift, they all agreed on these tips:
- Start small and be selective about which digital initiatives to implement.
- Leverage existing vendors and technology to introduce automation.
- Use data to drive decisions and personalize member interactions.
- Be prepared to pivot as member expectations and technology evolve.
- Don’t be shy about embracing digital but focus on the member experience first to do what is best for your credit union
The panelists agreed that credit unions should not feel pressured to adopt every new digital trend at once. Instead, they should focus on incremental improvements, ensuring that technology aligns with their core mission of member service. They also highlighted that it was important to focus on interactions, not transactions while identifying at least one area in the business where better data could improve the overall member experience could be a game changer.
By strategically integrating AI, automation, and data-driven personalization, credit unions can enhance operational efficiency, improve member engagement, and maintain the trust and loyalty that set them apart from traditional banks. The key takeaway? Start somewhere, but stay adaptable—because digital transformation is an ongoing journey, not a destination.
VisiFI is a digital-first developer and integrator for community financial institutions. We provide flexible, open, and modular banking solutions built to accelerate customer growth and personalized services. From digital banking, all-in-one core, account opening, digital lending, and everything in between, we create connected and secure experiences protected by industry best practices in data and systems security. If you are on the path to digital transformation and are considering a new digital banking or core offering, we would welcome the opportunity to discuss how we can help. Interested in learning more on this topic, visit: Watch the webinar.
