No doubt you’re hearing messages left and right, enticing your decision makers (and your budget) to invest in the latest and greatest digital technology.
The digital age has pushed an intense transformation in the financial industry. A clear trend emerges: Credit unions and banks that are hesitant towards new technology will be left behind.
With so many competing offers and voices, how’s a decision maker to know which innovative technologies are worth the investment and will actually move the needle?
We’d like to answer that, but first a reminder:
An Innovative Mindset is Key to Lasting Change and Transformation
Think of your FI’s technology as the electricity of a house. It’s hardwired into the structure, and it keeps things in working order, empowering daily functions.
If technology is like electricity, innovation is the thermostat, setting the atmosphere for the entire dwelling. You need electricity (or technology) to run the thermostat (an innovative mindset). Technology is the “what” and innovation is the “how”.
Innovation requires a culture that embraces the desire and ability to change. To keep pace with today's rapidly evolving financial landscape, the role of innovation and adaptive leadership has never been more crucial.
(It’s worth noting that your financial institution may already practice an innovative mindset but lacks the resources to implement the changes. If this describes your FI, keep reading.)
Now, to answer your original question:
What Innovative Solutions are Worth the Investment in 2025?
There’s more than one way to invest in innovation. In fact, here are our top five picks with the results to back them up.1 These needle-moving solutions are primed to help financial institutions of all sizes thrive amidst the current market challenges.
- Claims processing: Refunds of unused portions of vehicle protection products (like that of GAP) continue to be an area of particular focus - both for lenders and for regulators. To avoid audit scrutiny, potential compliance breaches, and lost dollars that can be applied to deficiency balances, a comprehensive, end-to-end automation is needed. Streamline the cancellation process of aftermarket products with the first-to-market solution, RefundPlus. Calculating and remitting these refunds can yield around ~$500 per vehicle refund.
- AI credit decisioning: Is your lending department still approving loans manually? Or maybe using outdated lending perimeters and data? If so, it may be time to plug AI-powered loan approvals into your LOS. The data pool is refreshed every 3 months (compared to annually) for real-time updates on borrower credentials.
Artificial intelligence fuels instant loan approvals that result in up to 40% more credit approvals. - Leadership and emerging leadership coaching: All levels of employees need ongoing development for skill enhancement and career advancement. To cultivate a culture of continuous learning employees should be given opportunities and tools to acquire new skills for personal development and career advancement. There is a profound interconnection between employee development and retention. (One credit union lowered employee turnover by 11% with culture training.)
Ongoing training and coaching help employees feel empowered and excited to do their jobs. Engaged and motivated employees are more likely to deliver exceptional member experiences. So, investing in your team's well-being and development is an investment in your accountholders too. - Data analytics: Finally, big data is tailored to financial institutions. Analytics that provide deeper insights into consumer behaviors, market trends, and risk assessment are powerful. Data-driven choices will empower you to mitigate risks more effectively, identify untapped growth opportunities, and allocate resources with precision.
Leverage a $2.7 trillion data pool for the most accurate data modeling and actionable intelligence. These analytics take the guesswork out of strategic planning, despite a turbulent economy. - Video creation and distribution: What if your sales, HR, and marketing teams had the ability to create corporate branded, short-form video within minutes for a fraction of the cost? With in-house video production these teams can do just that. Bringing video production in house reduces costs and decreases video content creation by 75%. Accountholder-facing video promotion can bump digital tool adoption up 29% too! Unleash the power of video creation by adding a simplified production and distribution platform to your toolkit for 2025.
It’s Time to Invest in Innovation
Investing in these solutions today sets your institution on a path to sustainable, scalable growth, facing challenges of digital transformation, loan growth, employee retention, and competitive edge head on.
If you are unsure of where to begin embracing this innovation-forward mindset and selecting the solutions for your unique business challenges it may be time to contact one of our growth experts.
With innovation as your north star, you’re one step closer to ensuring your FI’s ability to thrive amidst economic upheaval.
1 All results are derived and driven from Allied Solutions. 2024.