Technological advancements in the financial services industry have revolutionized the very way in which credit unions assist and interact with their members. From ATMs to mobile banking, credit unions have been adopting innovative solutions that provide members with the best service experiences possible.
Most recently, financial institutions have begun integrating artificial intelligence and automation in a variety of capacities throughout their organizations. Whether protecting data privacy or implementing virtual customer service assistants, credit unions have made significant strides at employing artificial intelligence and automation to solve critical issues and better serve their members.
So, how exactly will artificial intelligence and automation help credit unions in 2019?
Every day, credit unions face relentless attacks from cybercriminals attempting to infiltrate their security systems. While hackers only have to focus their resources on one cyberattack, credit unions must deal with a constant barrage of cyberattack attempts all at the same time.
Financial institutions are attempting to even the playing field by integrating artificial intelligence and automation into their cybersecurity strategies. For example, automation is being used to highlight problems and channel them to security experts. Artificial intelligence is currently being examined to allow a customer to withdraw cash from an ATM without a card, using facial recognition and a PIN.
Nonetheless, even with these advancements, credit unions should remain aware that these same technologies also can be used against them by cybercriminals.
As both technologies continue to permeate, fewer employees will be needed to do repetitive tasks. For example, the Bureau of Labor Statistics estimates that, from 2016 to 2026, the number of bank teller jobs will decline by 8 percent, or about 42,000 jobs. Furthermore, a McKinsey report forecasts that automation and artificial intelligence “will do up to 10 to 25 percent of work across bank functions.”
The financial industry is not alone. In fact, McKinsey estimates that “about half of the activities that people are paid almost $15 trillion to do in the global economy have the potential to be automated by adapting currently demonstrated technology.”
With declining operating costs, credit unions have increased opportunities and resources to expand the capabilities of their services and employees. Through tactical strategies, credit unions will have the ability to invest in technology that satisfies members’ needs as well as promotes efficiencies with the institution.
By continuing to integrate artificial intelligence and automation, credit unions will create a framework that better protects members’ data and identities, promotes financial stability within the institution, and allows for continued technological growth and sustainability.