by
Catalyst Corporate | Jun 06, 2023
From chatbots to generative artificial intelligence (AI), credit unions of all sizes can apply these new technologies to harness data and machine learning for a competitive advantage.
“Artificial intelligence has the potential to make the future more human, by allowing
credit union employees to spend more time on member interactions,” said renowned global futurist Jack Uldrich, a featured speaker at Catalyst Corporate’s upcoming 2023 Economic & Payments Forum.
In a recent interview, Uldrich explained that AI can help credit unions make more informed decisions, automate processes considered “grunt work” and benefit the whole credit lifecycle.
AI for service enhancement
Credit unions look to gain as much insight into their members as possible. Using AI, Uldrich said, gives you the power to weigh in on what’s currently happening and to see “the next best move.” It means offering your members the right products at the right levels to minimize risk and maximize growth. AI supplies opportunities to better understand your organization, he said, so you can serve your members with more consistent, personalized experiences.
AI, the assistant
“Sixty to seventy percent of the loan process can, in fact, be done by artificial intelligence,” said Uldrich when asked about the pros and cons of AI. With the efficiency AI provides, credit unions can reduce cost and friction for members. AI is an intelligent and virtual resource, he said, that deploys data to replace and improve business functions previously completed by human capital. This allows credit union employees to spend more time on member relations.
“It is important to look at AI not as a competitor to the task, but as a personal assistant,” Uldrich said.
AI can benefit the whole credit lifecycle
Credit unions and their members have something big in common – neither likes a financial surprise. AI can act as a forecasting tool for consumer delinquencies by using data to provide early warning signals that a payment may be missed or deficient. This can help credit union employees offer assistance and options for the member to avoid collections. Because of its ability to work well with real-time data, AI can help guide collections strategies – confirming member addresses and contact information and identifying the best and quickest ways to reach out.
Leveraging, rather than fearing, AI to benefit all
While some credit unions are wary of AI, a look at the competitive landscape should give them a greater sense of urgency. Credit unions can serve an important role in the community, using AI to better assess borrower risks and predict member financial health to benefit members and the credit union.
“The world is changing so fast on so many fronts, it’s natural to be concerned or even fearful of the future, but there is also a world of opportunity. I really want people to be optimistic about the future,” Uldrich concluded. “Leverage these emerging technologies to better serve your members and the community and make it a win-win situation for everyone involved.”
AI technology is one of the many hot payments and technology trends Uldrich will cover during Catalyst Corporate’s Economic & Payments Forum September 18-20.
Join us for Forum 2023 onsite or online! For more information, or to register, visit Learning Center/Conferences on Catalyst Corporate’s website.