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The Digital Revolution: Delivering Financial Services in the Future

The digital transformation the world is currently undergoing will dramatically reshape how members and customers select and assess financial institutions.

Executive Summary

This report examines the implications of new information and communication technologies that many believe will dramatically reshape how members and customers select and access financial institutions. The purpose is to provide strategic insights that credit union executives and boards of directors can consider when developing and refining electronic delivery systems. 

What is this research about?

The primary focus on changes in computer capabilities and their use, how these changes affect the way credit unions connect with their members, and how the changes affect the volume of information that credit unions can amass about each of their member's financial needs. The researchers also address the effects of these changes in technology on credit unions' current competitors and on new types of competitors that are developing as a result of technological advances.

What are the credit union implications?

The digital revolution has a variety of implications for credit unions, including: competition will become more intense and the most serious competitive threat may be from companies they seldom consider today; technology will shift the balance of power from the provider to the buyer of financial services as members will no longer be restricted to the financial institutions in their local market; and the shift to electronic service delivery will be one of the major challenges facing credit union management over the next ten years. The challenge to credit union leaders will be maintaining current systems and serving current members while moving into the future.