‘Changing Landscapes’ was the theme for this year’s Spring CUMA conference and it brought about lots of food for thought in the ever-evolving financial sector. With over 16 years’ experience as a trusted technology partner to Credit Unions from all over Ireland, we were particularly interested to hear what Digital Transformation trends Credit Unions needed to embrace and where the sector was headed in terms of digitalisation. David Haran, Lecturer in Digital Financial Services at the Institute of Banking, took to the stage to give us a breakdown. Here are some of our key takeaways from his talk,“Impact of Digitalisation – What does the future hold?”.
The Importance of Data in Combatting Fraud
“There’s huge growth in the area of analytics at the moment and what data is doing. We’re talking about the combination of artificial intelligence, machine learning, and ultimately deep learning. The issue is that fraud is ever changing. Whether it be digital or counterfeiting. For those involved in fraudulent activity, unfortunately, the rewards are so great, that they’re able to go the extra yard and always have the best technology and always have whatever it takes to complete the fraud. So, machine learning is the trick whereby we start to get the machines to understand what the fraud is, and to adapt and to stop the fraud.”
The importance of embracing Digital Transformation & Becoming Digitally Native
“A digitally native company is one that is already at the forefront of what’s happening today. With cloud computing, distributed computing, mobile, internet, etc, we were already moving to cashless transactions before Covid. The fintech’s are already digitally native. They already have the data analytics; they already have the capability to issue new products. They already have an omni-channel approach. Financial institutions are somewhere to the left of that. However, you can’t make the jump from one to three straightaway. Because you can’t shut down your organization for six months, put it in new systems until your members will be back in October. It doesn’t work like that. So, you must bite it off in bite sized chunks.” Digital Transformation is a continuous process that begins with just one step. We have helped multiple Credit Unions on their Digital Transformation journeys. Check out some of out Digital Transformation Services, here.
Fintechs and Collaboration
“Last year, $24 billion was invested in digital lenders. That’s a big change over the previous years. Digital lending is the new paradigm for fintechs. What’s happening in 2022 convergence, we’re all coming together. What’s happening what’s happening with that convergence? Well, we’re getting this huge technology change, because the infrastructure is coming down in price. If any of you look at the price of cloud computing, you can now do everything you want to do. It’s a different world we live in. We’re going to see collaboration between fintechs and banks, and we’re going to see new trends coming about but old, why? Because of data utilisation.”
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