Wolters Kluwer, a global leader in professional information, software solutions and services, announced today results of an industry survey of credit union executives that takes the pulse of the current environment for the adoption rate of digital transformation of back-office documents and workflow automation.
The online survey took place during the first week of May, and was presented to more than 3,000 credit union (CU) executives across the U.S. The majority of CU executives (36%) said they are currently leveraging digital strategies and tools for digital lending experiences for members and align with internal digitized workflows. Another 32% said they offer basic digital lending (online banking) experiences for members. Even though 82% said it is either “somewhat” or “very” important to create a fully digital experience, less than 10% of respondents (9%) said they currently offer a full suite of digital lending experiences, including banking and loan applications online.
An alarming 72% of executives said they are not confident in their ability to create a fully compliant digital strategy that automates back-office processes with digital tools. When asked of their largest barriers of adoption, the largest number of respondents (31%) said they have been unable to find the right partner, and 28% said lack of tech resources. Budget was only mentioned by 14% of respondents.
Other significant highlights of the survey:
- 82% said they either aren’t or are unsure if their CU is processing data from their digital solutions to enable automation for their business functions.
- The largest number of respondents (27%) said “funding loans” represents the most important business area to automate using data; yet only 5% said they are already doing this.
- Another 26% said “reconciliation” represents the most important business area to automate using data; yet only 5% said they are also already doing this.
- 24% said they need to create a more seamless transaction experience for members to create a fully digital finance journey for members; 21% said enable greater compliance and adherence to federal regulations; 18% said offer securitization and asset monetization.
Of those CU executives who are leveraging digital tools, 35% said it has created more efficiency through the process, 27% cited a reduction in errors, and 19% said it has reduced risks of compliance violations.
When asking about secondary markets, a staggering 83% said they either do not currently operate in securitized markets, or they would like to operate more of their portfolio in securitized markets. Of those CUs that currently do not operate in secondary markets, 27% said they don’t have the tools to operate in the space, and 18% said they don’t have the knowledge of operating in the space.
"In today's rapidly evolving financial landscape, it is crucial for credit unions to identify and collaborate with the right strategic partner to integrate advanced digital tools and automation in their back-office operations,” said Tim Yalich, Head of Motor Vehicle Strategy for Wolters Kluwer. “By doing so, they not only streamline their internal processes but also significantly enhance their ability to attract and retain members and expand business opportunities in secondary markets. The integration of cutting-edge technology allows them to offer a seamless and personalized experience, meeting the increasing expectations of members. Moreover, as they bolster their operational efficiency, they position themselves more competitively against larger financial institutions in the broader lending environment. Embracing digital transformation is no longer an option but a necessity for credit unions committed to growth and excellence in member service."