Member Driven Technologies (MDT), a CUSO that hosts the Symitar core processing system from Jack Henry™ to provide a private cloud alternative for core processing and IT needs, today shared commentary on the financial services landscape this year as well as predictions for what’s to come in 2023.
More focus will be placed on ROI drivers. As an uncertain economic outlook remains top of mind, credit unions will reprioritize where they spend their technology dollars and effort next year. Expect to see a narrower focus on investing in technology that directly helps optimize costs and boost efficiencies.
To be clear, innovation and digitization will remain a key priority; such initiatives are critical to credit unions’ success. But, instead of investing time and money into exploring new areas (such as the metaverse and BNPL), innovation efforts will be dedicated to areas that impact member service, such as digital account opening, online and mobile banking, online loan applications, etc.
Credit unions will reflect on lessons learned in 2022. There were many hard lessons learned this year that credit unions will consider moving forward. Take real time payments, for instance. Many credit unions quickly implemented faster payments in response to member demand but faced an influx of fraud as a result. Next year, institutions will implement more steps to properly evaluate the risk versus reward of new solutions and products. Security will remain a top priority.
Smaller credit unions will look to technology to help keep their doors open. Talent shortages and thinning margins are challenging credit unions across the board, but smaller institutions are especially feeling the impact. These smaller credit unions are struggling to stay on top of barriers that come with successfully running an institution, such as succession planning and rising operating costs. As a result, many are being forced to look to merge or even close their doors entirely.
Leaning on technology and strategic partners to optimize margins and bridge talent gaps has become a major lifeline to those challenged to remain independent. Incorporating more automation helps meet needs when positions are difficult to fill (for example, back-office positions have become nearly impossible to replace) and empower employees to do more with the resources available to them. Expect to see reliance on technology like the cloud and AI/RPA increase next year.
“Times of economic anxiety are often when members need their credit unions the most. I have no doubt credit unions will rise to the challenge next year, continuing to provide their members with the personal, robust support they need to weather any storm,” said Larry Nichols, CEO and president of MDT. “However, to do so effectively and sustain operations, credit unions will increasingly look to technology and partners that can deliver efficiencies and member service enhancements. MDT is proud to work hand in hand with credit unions across the country in these efforts.”
About Member Driven Technologies
Member Driven Technologies (MDT) provides a private cloud alternative for core processing and IT needs. The CUSO hosts the Symitar core processing system from Jack Henry™, as well as dozens of seamlessly integrated solutions and supporting services to help run the entire institution, such as digital banking, payments, lending, cybersecurity and imaging. Rounding out its comprehensive suite, MDT also offers business continuity, disaster recovery and regulatory solutions as well as consulting, data analytics, email hosting and hardware purchasing services. By partnering with MDT, credit unions across the country are boosting efficiencies, enhancing security and reducing costs while maintaining a high level of control. Visit mdtmi.com or follow @memberdriven for more information.