Tech Offers Solutions to Challenges Faced by CIOs
The age of digital transformation is well underway. The numbers are in, and people prefer to do their banking online rather than in a branch. As a result, CIOs for credit unions are faced with a tall task in spearheading the vital transition, which brings about a number of challenges. At the forefront are two main issues:
● Data Competency
While many credit unions have been happy to outsource their data to 3rd party analysts, implementing internal data processes is becoming increasingly vital. CIOs have found great benefits in pushing data science and analytics within credit unions to optimize business performance.
● Security and Fraud
With much of the pressure around compliance and security mounted squarely on the CIOs’ shoulders, an understanding of cybersecurity is important. New technology can help increase the timeliness of information exchanged between the credit union and an auditor and help CIOs improve compliance execution and handling of member data.
Asset management technology offers solutions to these issues and more. With increasing importance being placed on CIOs to leverage data science, there are tools that exist to expedite the transformation:
Predictive Technology & Automation
In the world of business intelligence, predictive technology, based on artificial intelligence and machine learning is becoming essential to survival. This is especially true for credit unions that are in direct competition with big banks. Automation is essential for speeding up processes, batching tasks, and is a fundamental piece of digital transformation.
Blockchain
Blockchain’s ability to store data in a decentralized manner and enable growth within asset management companies is unparalleled. It is useful in ensuring regulatory compliance and is becoming crucial to privacy and maintaining secure records.
Record keeping has always been a large part of banking and a massive investment of time and resources, with blockchain, the process is streamlined. A blockchain can be leveraged by credit unions in a number of ways – here are just a few:
- Facilitate person to person payments
- Record changes in asset ownership
- Identify customers securely
- Enable large scale transactions between financial institutions
Blockchain provides incredibly secure facilitation of data competency. For example, in 2016, the CULedger initiative was started to develop a framework for a shared ledger platform that was systemwide, permissioned, and distributed by credit unions. It has since gained the participation of Best Innovation Group, PSCU, and more.
Staff Augmentation
Competing for tech talent can be a real issue for CIOs. Staff augmentation is one way to help support businesses facing these issues. Staff augmentation allows teams to access a larger talent pool. Through outsourcing short-term jobs and positions from within the company, credit unions can take advantage of the ability to scale and descale at will.
Rather than compete with an entire industry for a small pool of talent, credit unions are able to access cutting-edge tech resources that are in such high demand, without going over budget.
With all of the innovations brought along by new technology, fintech is blazing ahead at a rapid pace. CPQi is here to help you grow with the latest financial technology innovations.
