Change is inevitable
Increasingly, banks and credit unions experience challenges related to cost pressures, new regulations, increased customer expectations and digital disruption. As a result of these industry challenges, banking executives must expect to ramp-up and evolve their change management processes, teams and methods. Especially for smaller financial institutions like credit unions and community banks, maintaining the rigors imposed by shareholders, members, customers, media, regulatory agencies, legal/risk/compliance teams and, of course, those disruptive fintech players requires prioritization, focus, execution, agility and support.
According to a recent survey facilitated by Accenture:
- Banks are investing more in change programs to address cost challenges, member experience, digital innovation and regulatory requirements.
- The leaders of change demonstrate well-defined digital strategy, clear vision of need and greater leadership commitment.
- Change leaders have sharper focus on human factors and role of supportive culture when executing change.
- Enabling these professional change capabilities allows financial institutions to execute change with greater pace and agility without sacrificing discipline and quality.
Are change programs growing at credit unions? We agree with the survey results that financial institutions, including credit unions, are challenged by cost pressures, changing regulations, member expectations and digital disruptions. Without a doubt, credit unions are addressing their ability and capacity to effectively, efficiently and urgently manage change. How the credit unions and community banks go about growing their change programs will depend on their culture, size, budget and willingness to embrace agility and evolution across their organizations.
Are these programs warranted? Absolutely, credit unions, like their larger and for-profit brethren, must provide value to members, improve performance, deliver efficiently and manage costs. Often, the smaller financial institutions need help to introduce and establish the methods and tools of a modern change management organization. However, they likely have trepidations engaging with the larger consulting firms. The top focus areas for change include:
- better efficiency and control
- new technologies and channels
- relevant, responsive and personal experience and service
- adherence to risk, regulatory, legal and compliance requirements
- competitive (and open) with fintech disruptors
- enhance product and service innovations
Why is change so important now? Change is inevitable. The speed of innovation and impact of external disruptive forces has dramatically altered expectations. Banks and credit unions are now expected to evolve and innovate at a more rapid pace. It’s imperative that the approach to change management evolves in a way to enable the mission of the financial institution, particularly with the non-top-10 financial institutions that can’t simply muscle their way through change.
Hayden Technology brings experienced consulting talent to credit unions and community banks lacking big bank budgets.