Amit Gandhi, CEO of NovelVox, an AI-enabled contact center solution provider, helps organizations deliver impeccable customer experience.
Financial institutions seem to be keeping pace with AI adoption. Studies say 72% of financial institutions are increasing their expenditure on AI. With this, the AI market in banking is speculated to grow to $64.03 million by 2030. Even credit unions are adopting AI to automate their loan approvals and streamline other processes like fraud detection and member support.
As the founder of a company that builds intelligent contact center solutions, I have seen how AI can significantly transform credit union member service. Overall, adopting AI can help reduce costs, free up staff time and bring many more scalable solutions.
How AI Is Redefining Member Experience
AI-driven tools allow credit unions to compete with big financial institutions efficiently while maintaining the personal touch. Let’s see how it is transforming credit union contact centers.
Improved Internal Efficiency And Customer Support
AI-driven chatbots and virtual assistants can help credit unions provide immediate, round-the-clock customer support. With this 24/7 support, these institutions can help their members provide proper account information, address their routine inquiries and better guide them through various processes.
For example, UnitedFCU implemented Finn’s AI chatbot in its credit union’s online banking and mobile app. The bot helps the organization handle 80% of customer call drivers that they found are “basic service requests,” making it so that many customers who interacted with the bot didn’t need to talk to a live agent.
Valuable Insights From Collected Member Data
Like any bank, credit unions collect vast amounts of data about their members’ transactions, past preferences and behavior history. AI can help analyze this data and turn it into meaningful action.
For example, by implementing AI into its operations, Central Willamette Credit Union achieved a 600% boost in its product offer response rate, proving how AI’s massive capabilities can help credit unions enhance their patterns and earn more revenue.
Better Protection Against Data Breaches And Financial Threats
When AI analyzes this data, it can also help credit unions identify any issues with transactions or potential signs of fraudulent activity. Hence, this helps members protect their financial assets while safeguarding the institution’s reputation.
AI can analyze many transactions per second, flagging financial irregularities. This can help institutions detect potential security breaches and identify suspicious online behavior. In fact, AI-driven fraud detection systems can help credit unions “identify up to 95% of suspicious financial activities in real time.”
Automated Underwriting
Extending the benefits already seen in customer service and fraud detection, some credit unions are now applying AI to automate underwriting, enabling faster loan decisions and greater volume.
As earlier noted, these systems can audit application packets, verify calculations and flag inconsistencies, helping streamline lending and improve accuracy. For one credit union, this led to a 70% increase in loan processing volume.
Strategic Priorities And Emerging Developments
Three member-centric AI strategies to focus on when employing AI tools are faster support resolution, personalized financial insights and smarter self-service. Establishing strong data governance practices is also important to ensure accurate decisions based on artificial intelligence data.
Looking ahead, some of the most promising developments in AI—like predictive member engagement—will allow credit unions to anticipate needs before they’re voiced, enabling timely, personalized offers and advice. In parallel, advancements in natural language processing (NLP) are making voice and chat channels more intuitive and human-like. Forward-thinking credit unions should begin preparing now to strengthen these digital touchpoints and build the infrastructure that supports a more proactive, seamless member experience.
The Challenges For Credit Unions In AI Integration
Credit unions face challenges when adopting AI technology, specifically because they have limited resources compared to large financial institutions. An earlier survey from Talkdesk shows that 73% of financial organizations struggle to optimize guided conversations or chatbots using AI.
I find that the main reasons behind this struggle are shortage of skilled workers, resistance to change and concerns about quality data hindering AI integration.
A few practical steps can help credit unions address these problems.
• Focus first on AI-powered fraud detection or automated member support through chatbots. These tools have clear ROI and faster deployment timelines that can deliver immediate results.
• Work with partners who have experience working with small financial institutions or credit unions. Look for vendors who can support implementation, training and ongoing maintenance.
• Prioritize organizing, cleaning and centralizing your data. Your AI depends on good data.
After AI-powered fraud detection and risk management , credit unions with limited budgets can also focus on conversational AI, such as chatbots and virtual assistants.
Competing With Large Banks
Smaller credit unions can compete with larger institutions by starting with targeted projects to deliver faster returns. Instead of hiring new staff, look to train existing staff to expertly utilize your AI tools.
Overall, implementing AI-based virtual assistants and chatbots can help streamline operations and improve decision-making. When embraced by credit unions, I believe AI-driven solutions can help ensure superior member experiences and optimized operations.
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