Technology never stands still and 2023 was no exception, underlined by explosive growth in areas like generative artificial intelligence (gen AI). As we roll into 2024, credit unions must stay on top of those and other developments – and stand ready to refine existing tools and deploy new capabilities.
You don’t need to go it alone. Your core processor should be well-versed in the technology that can surround its ‘core,’ as well as what companies have the right offerings for your credit union. And they should be willing to help guide you toward you credit union of tomorrow.
Here are four trending areas we are watching and working on for you in 2024:
- ChatGPT and Generative AI
Credit unions have been using AI and machine learning for several years now, most notably in chat-based member support. But the rollout and subsequent explosive adoption of ChatGPT and its competitors stand to exponentially expand the use of gen AI – which can produce text, images, audio, and much more through simple to complex queries.
Use cases we’ve seen so far range from creating job descriptions and other documents to project management, vendor research, and complex loan decisioning. As far as the core platform itself, gen AI can add unprecedented speed and flexibility to such tasks as developing software codes and queries and integrating back-office functions to unprecedented levels.
The challenge will be harnessing the power of this technology while ensuring security and compliance. “AI hallucinations” – incorrect query replies – have quickly become a thing, too, and regulators have taken notice, and now are under a presidential order to create standards for AI use. We’ll keep an eye on these developments and help our credit union partners take advantage of these amazing new developments within the emerging guardrails.
- Blockchain Moves Beyond Crypto
Bitcoin and other cryptocurrencies quickly became a very large, very volatile business and even some credit unions have dabbled in supporting the blockchain-based new currencies. But the real promise we see in blockchain lies elsewhere: in the use of its foundational distributed ledger.
That tamper-proof ledger also ready has proven its value in reducing friction and helping to secure cross-border payments and trading, and in 2024 we expect to see work continue in establishing common standards and infrastructure, promising increased transparency, speed, and access across the financial ecosystem.
Prodigy is actively involved, working with BankSocial to provide fair and equitable access to financial tools through open banking solutions, including the proposed launch of the first digital native, self-custody credit union powered by distributed ledger technology. We’ll use what we learn to further refine the cloud-based platform we provide to our client credit unions.
- Strengthening the Cloud
Cloud computing is no longer an emerging trend. The power, efficiency, and security of hosting most or all core processing functions offsite makes it mandatory for nearly all credit unions. So is securing the cloud.
The high-profile attacks in 2023 mean that in 2024, credit unions and their partners must reinforce cloud securitythrough greater segmentation, zero-trust models, and otherwise restricting access to sensitive data.
While much of the work needs to be done at home – in the form of educating staff to protect passwords and be alert to ransomware, phishing and the like – you can’t do it alone. Ensure your technology providers – especially the host of your cloud-based core system – have the expertise to keep up with current and emerging attacks.
- Integrating products, services and member-facing channels
The long-predicted demise of physical branches is no longer being so widely predicted. Even the most digital-savvy members still rely on physical outposts for some transactions and advice, and even those not so up on their bits and bytes expect seamless service across products, services and delivery channels.
In 2024 and beyond, core processors need to work with their partner credit unions to deploy interactive interfaces, advanced automation, and tools for ever-more personalized in-person experiences. Gen AI and other machine-learning tools are advancing credit unions’ ability to swiftly, efficiently support such omni-channel functionality, but it still comes down to people.
Team Prodigy will be working on your core platform’s ability to more efficiently do your jobs in-house, while refining and expanding seamless integration of new banking and financial wellness products and services your members expect and need.
Keeping Up with Constant Change
By keeping pace with the latest advances and use cases, credit unions and core processing partners like Prodigy can continuously improve how we collectively serve credit union members. We look forward to another great year of improving how we support your commitment to delivering the best in financial services to the people you’re chartered to serve.