April 10, 2024
3 Big Benefits of AI for Credit Union Members
Artificial intelligence (AI) is all the buzz these days, even for financial institutions! While you may be wary about this technology as it’s still somewhat in its infancy, there are certainly reasons to consider AI for credit unions.
As you discover the benefits of AI for credit unions, be sure to stay abreast of the potential risks. Here are 3 big benefits of AI for credit union members:
1. Improve Member Communication
With more members and often fewer employees, efficient communication isn’t always possible—at least not in the traditional manner. Credit unions are known for their “family feel,” welcoming environment, and personable nature. While you may think AI will diminish that, it can help your CU uphold its reputation.
Improved Member Support
With an AI-powered chatbot, simple questions can be answered promptly without taking time away from a staff member. Therefore, members with more complicated inquiries won’t have to wait on hold for a member service representative.
AI can also help break down language and communication barriers, providing a more inclusive experience for your CU. When dealing with a diverse member makeup, your team may be unable to support those members who are not native English speakers. “…Cultural misunderstandings cost American businesses over $2 billion per year…” and can also negatively impact the experience your members have. Enter the interpretative abilities of AI. Member questions and concerns can be translated, and answers can be provided in their first language. Additionally, your credit union can substantially save by harnessing AI for this service instead of hiring costly translation services (that may not be as timely or responsive as AI would be!).
Personalized Member Advice
Generative AI can also help improve communications by generating personalized advice for members based on an individual’s historic member data (such as their loan or payment history). Relationship building is a key differentiator of credit unions, and personalized advice, particularly involving financial wellness, can help strengthen relationships between the member and CU.
Enhanced Engagement & Content
It is imperative to engage with your members consistently. Still, your credit union may not have the time or manpower to craft relevant, timely content to include in newsletters, e-blasts, and even push notifications. By leveraging AI, compelling messages can be automatically generated. Marketers will save time and energy and help boost member communication and heighten member relations.
2. Resolve Member Issues
The last thing a frustrated member wants to do is walk you through their account history; with AI, they won’t have to! Using AI, member service representatives can access member information more quickly and easily. For example, a snapshot of a member’s financial accounts can be accessed before the member even explains the issue.
This is a benefit not only for members but also for your contact center. Those answering calls will now have a built-in “virtual assistant” to provide better and faster service. Less stress = a happier team and improved employee retention.
Some credit unions, including one in Harrisburg, PA, are using AI to determine the feedback sentiment of their members. Using AI, credit unions can analyze all the feedback that comes into their contact center, examine it, determine the types of sentiment being expressed, and easily categorize the types of feedback being received.
3. Provide Member Control
Today’s credit union members, especially millennials and Gen Zers, like to figure things out independently whenever possible. AI can provide the tools necessary to make this possible. By incorporating AI into digital banking applications, members gain access to more helpful information right at their fingertips.
For example, AI gives financial institutions the ability to discover and record member information more quickly, making it easier for members to apply and qualify for accounts or loans from the comfort of their homes.
Avoid Potential Risks
Since AI is still somewhat new and constantly evolving, it’s essential to be aware of the risks and to be particular about what AI technology you use. When considering the addition of AI to your credit union operations, there are three primary aspects to keep in mind before implementation:
1. Data Protection
Your members’ privacy and security must always be your top priority. Make sure the AI of interest adheres to ethical and regulatory standards.
2. Transparency
Ensure AI algorithms are easy to understand and unbiased.
3. Member Compliance
Before implementing any new technology, it’s essential to inform your members so they can understand the benefits and limitations.
AI may appear to be just trickling into the credit union industry, but that’s only for now. Based on predictions, it’ll be in full force sooner than we expect, so now is the time to begin learning about Artificial Intelligence and how it may improve your operations and member relations.