Lizeth GeorgeBy Jeff Rendel, Certified Speaking Professional and President of Rising Above Enterprises
In strategic planning discussions over the past several years, the topic of artificial intelligence (AI) has moved from “Interesting to Know” to “What Do We Do?” Directors and executives have considered the range of options with AI: disruption, insights, automation, opportunity, and more. Dealing with AI has moved from a position of defense (What do we do?) to offense (What can we do?).
Credit unions can leverage artificial intelligence (AI) in numerous ways to improve their operations, expand member experiences, and make data-driven decisions. Here are five ways credit unions can utilize AI:
Fraud Detection and Prevention: AI can be utilized to detect and prevent fraudulent activities by analyzing vast amounts of member data in real-time. Machine-learning algorithms can distinguish patterns, anomalies, and suspicious transactions, helping credit unions proactively mitigate fraud risks and protect their members’ accounts. In an era where trust drives decisions, members value innovative ways you look after their best interests.
Personalized Member Experiences: AI-powered systems can analyze member data and behavior to provide tailored recommendations and offers. By understanding individual preferences, spending habits, and financial goals, credit unions can deliver personalized services, such as individualized loan options, investment advice, or savings plans, nurturing stronger member engagement and satisfaction. With AI, you can provide a personal dashboard toward financial success – one member at a time.
Chatbots and Virtual Assistants: AI-driven chatbots and virtual assistants can augment member support by providing instant responses to frequently asked questions, assisting with routine transactions, and guiding members through many financial processes. These AI-powered tools can operate 24/7, improving response times and reducing the burden on credit union staff. AI allows members to self-serve for regular transactions, allowing your member-facing leaders to focus their attention, and professional development, toward meaningful and consultative conversations with members.
Risk Assessment and Underwriting: AI algorithms can automate and streamline the risk assessment and underwriting processes for credit unions. By analyzing applicant data, financial histories, and credit scores, AI can assess creditworthiness, predict default risks, and expedite loan approval processes, making it more efficient for credit unions to offer loans and other financial products. AI also allows your lending function to consider non-traditional data points and make more loans with higher, risk-adjusted returns. AI and cutting-edge analytics can score members for loans by analyzing points of data that justify an extension of credit. With AI, one credit union discovered it missed 9,000 opportunities for loans that would produce $7 million of annual interest revenue. How much more could your credit union serve members with new, risk-priced loans it might have missed?
Data Analytics and Insights: AI-powered analytics platforms can help credit unions make sense of their substantial data repositories. By leveraging machine-learning algorithms, credit unions can uncover meaningful insights, identify trends, and generate predictive models. This can inform strategic decision-making, improve marketing campaigns, optimize resource allocation, and identify potential growth opportunities. AI makes your operations more efficient, improving the bottom line. As a result, your capacity to grow and reinvest in members increases.
It’s important to note that implementing AI solutions requires careful consideration of data privacy and security, along with ethical considerations. Credit unions should ensure they have robust governance frameworks in place to protect member data and maintain transparency in AI-driven processes. It’s clear that AI has an important place in financial services and the member experience. As you hold strategic discussions about the next phase of growth and success for your credit union, move AI to the forefront of the agenda and determine the most practical ways to generate action items around AI.
