Running any kind of financial institution in the modern era can be a challenge. In addition to worrying about standard issues (like regulatory compliance), credit unions also have to consider digital age issues like cyber fraud and providing the online services that customers want and need. Fortunately, digital solutions often arise from digital problems. Using new technology powered by artificial intelligence (AI) can be one way for credit unions to solve complex issues and improve organizational efficiency.
AI software can increase cybersecurity, reduce fraud, and optimize customer experiences. It also gives credit unions data-driven insights to help them make smarter business decisions. These tools are already streamlining operations to save time, reduce errors, and keep customers satisfied for credit unions across the country.
Inclind works with credit unions nationwide to help them build smart, effective websites. We can connect AI tools to your website using custom integrations so that you can take full advantage of all of the benefits of AI. Reach out to our award-winning website design and development team today to learn how we can help your credit union implement AI software into your operations.
How Credit Unions Can Use AI Effectively
Artificial intelligence (AI) is a hot topic. Much of the discourse around AI has focused on how AI is used in ways that we may not like, such as students using ChatGPT for assignments or bad actors making “deep fake” AI images or videos to cause chaos. However, the power of AI can also be harnessed for good, particularly in the banking and finance world.
Credit unions can use AI-powered tools to make their organizations more efficient and profitable. Below, we examine some of the best ways credit unions can use AI to achieve their goals.
Automated Loan Processing
AI software can automate processes and make loan processing much faster and more accurate. This can lead to faster loan approvals and lower costs for a credit union.
An AI system can automatically extract data from application forms, identification documents, and bank statements. This uses optical character recognition (OCR) and natural language processing (NLP). Automated data validation can then ensure that the information extracted from the documents is accurate.
These systems can also be used to perform risk assessment when underwriting loans. Machine learning models can predict borrower behavior, analyze credit risk, and identify any other potential concerns. AI software can also detect abnormalities in a loan application to spot fraud. Finally, it can automatically approve loans based on predefined criteria set by a credit union, which can mean that customers get their loans approved much faster.
Popular AI Loan Processing Providers
Fraud Detection and Cybersecurity
One of the biggest problems facing financial institutions today is scams. Cybercriminals have grown increasingly sophisticated in their attempts to steal money and defraud financial institutions. This includes using AI to make phishing emails appear more legitimate or to imitate customer voices.
Credit unions can use AI to defend against cyberattacks, and financial institutions can use AI systems to detect cybersecurity threats in real time. This software can analyze incredible amounts of data to identify patterns and suspicious activity. It offers a more proactive approach to security that can allow credit unions to detect threats before they materialize.
For example, AI tools can monitor customer transactions and flag anything unusual. If a customer makes transactions far away from where they usually make purchases, for instance, AI tools can alert the credit union to potential fraud.
Popular AI Transaction Monitoring Tools
Streamlined Operations
Some of the work performed by credit union employees is repetitive, such as balancing internal ledgers, entering data, and compiling data for compliance reporting. AI software can streamline operations and make a credit union much more efficient.
This can happen in several ways. Automated loan processing and underwriting can reduce human errors and allow for faster loan approvals. Automated reconciliation tools can also reduce the time (and potential for error) involved in manually balancing bank ledgers. AI tools can also aggregate data for financial reporting.
Popular AI Reconciliation Tools
Enhanced Customer Service
Chatbots have long been a staple across many industries, including banking and financial services. Artificial intelligence has opened up new possibilities when it comes to better customer service.
In the past, chatbots could only respond with canned scripts to frequently asked questions. Today, a custom knowledge base can be used to train an AI chatbot. The chatbot can then use NLP and machine learning to provide much more helpful real-time assistance to customers. This can not only reduce the load on customer service agents but also ensure that customers don’t have to wait for an available agent to get an answer to a question.
Popular AI Chatbot Tools
Customized Member Experiences
Credit unions can use AI software to provide a better, more personalized experience for customers. AI can analyze data to predict future behavior (known as predictive analytics). This can allow a credit union to anticipate customers' needs, opening up the possibility of offering services and products they may not have even considered.
For example, if a credit union customer frequently travels internationally, AI can detect this based on their transactions. The software can then customize recommendations for the customer, such as fraud prevention tips and no-fee foreign transactions.
Similarly, AI can be used to offer customers tips on financial wellness based on their spending habits. This can make customers feel more “seen” by their credit unions because they will be getting useful advice based on their actual needs, leading to increased trust and loyalty.
Popular AI Member Engagement Tools
Data-Driven Insights
Artificial intelligence and machine learning can be used to analyze vast amounts of financial data to develop actionable insights. AI software can analyze three types of data:
- Transactional data includes all activities related to a customer’s financial transactions. This data can give credit unions insight into customers' spending habits, allowing them to offer services and products designed to meet their needs.
- Behavioral data is information about how and when a customer interacts with the credit union (such as using the mobile app or online bill pay). This can determine what services and products are most helpful to customers, helping to shape decisions about where to invest.
- Demographic data includes customers’ age, location, income level, occupation, and gender. This can help banks understand the unique customer needs of different groups. Financial institutions can leverage this to gain insights into the specific needs of various customer segments.
Using this data, AI analytics tools can help credit unions get a more comprehensive look at customer behaviors and preferences, which can guide them in their decision-making processes. For example, suppose AI software determines that a segment of credit union customers has a high level of disposable income but low savings levels. In that case, the credit union might decide to offer high-yield savings accounts to these customers or to develop a financial management application.
Popular AI Analytics Tools
Build AI Automation Into Your Credit Union Website
Artificial intelligence doesn’t have to be a scary, unknown thing. While the science behind AI is complex, these tools can be used straightforwardly to improve your credit union’s operations. From fraud detection to more personalized customer experiences, AI automation can be a boon to your business.
At Inclind, we know just how incredible the right AI tools can be for streamlining operations and boosting revenue. We work with credit unions to help them understand their options when it comes to AI automation. We can help you choose the tools that will help your credit union grow and integrate this software into your website and other software systems.
We're happy to chat if you’d like to learn more about our website design and development services for credit unions, including AI integration. Fill out our online contact form or give us a call at 800-604-8139 to talk to one of our experts about your website.