MAY 24, 2017, Mississauga, ON – According to PwC, innovation will be the single most important factor driving sustainable top- and bottom-line growth in banking over the next five years.1 However, the financial industry’s tendency to exercise caution in order to adhere to regulatory requirements can often limit the pace of innovation.
Cummins Allison, the leading innovator and provider of coin, currency and cheque processing technology, explains how leveraging partnerships with third-party vendors can help credit unions address this challenge and achieve their innovation goals.
The Value of Vendor Partnerships
While technology may hold the key to overcoming business challenges, some credit unions may not be in a state of readiness to achieve their technology objectives on their own. By working closely with vendors that place a high value on research and development (R&D) and maintain strong patent portfolios, credit unions can put themselves in a position to reap the rewards of their vendor’s innovation and accomplish their own goals more quickly.
Individual credit unions may not have the staff or resources to fulfill all of their own technology goals; however, industry vendors that place an emphasis on innovation feature large teams of engineers that are continually looking to develop the next big breakthrough – while also enhancing current products to offer more features or make them more durable and efficient.
Fostering Member-Centric Innovation
Member feedback is a key tool in any credit union’s toolbox, as that data can be used to tailor products, improve member experience and spot trends earlier. Likewise, it’s critical that credit unions share this feedback with their vendor partners to influence the development, design and engineering of new products. By doing so, credit unions can help these institutions stay ahead of the market and ensure that the solutions that are being developed are in line with the issues being faced by their branches.
Technology to Build Stronger Branches
Just as technology is making it easier than ever for members to compare rates and features of different credit unions and simplify the process of transferring accounts, new or refined technology can go a long way toward helping branches remain relevant in the eyes of members – and increase loyalty.
As credit unions rethink their branch strategy, technology investment should be a critical part of the decision-making process. That includes working with vendors to identify processes that can be simplified or automated – such as branch or teller image capture and coin processing – to ultimately increase efficiency and member satisfaction.
Navigating Vendor Options
With so many vendor choices available, how can credit union executives be sure that the companies they’re working with truly foster innovation and that they’re not purchasing outdated technology? The biggest indicator can be how much each vendor invests in R&D. By comparing these investments, examining patent ownership, and looking at industry recognitions for innovation and product efficiency, credit unions can find trusted partners that can help position them for long-term success.
To remain relevant, credit unions must not only focus on today’s members, but those of the future. That means going beyond making incremental improvements and focusing on holistic changes that will transform how services are delivered across every channel – including the branch. To learn more about how vendor partnerships can drive innovation, visit: http://www.cumminsallison.ca/us/en/about-us/cummins-allison-innovation.
1 PwC, “Retail Banking 2020: The Future of the Retail Banking Industry” http://www.pwc.com/gx/en/industries/financial-services/banking-capital-markets/banking-2020.html
About Cummins Allison
Cummins Allison is the leading innovator and provider of cheque, currency and coin handling solutions. Our world-class sales and service network includes hundreds of local representatives in more than 50 offices in North America, 6 wholly-owned subsidiaries and is represented in more than 70 countries around the world. For more information about our award-winning solutions, visit www.cumminsallison.ca.