Technology on the Fringe

Elizabeth D. Thompson
March 18, 2008 | COMMENTS

Technology on the fringe is innovation that has reached public attention but has yet to gain widespread acceptance and use. The highly desirable gizmos that fascinated our grandparents like tractors, refrigerators, planes, and plastics have been replaced in our hearts and imaginations with web-enabled mobile phones, biometric scanners, and sophisticated devices and software that enable us to do more simply and quickly.

While much hidden anxiety exists in society about fringe technology impinging on our privacy and stealing our souls, credit unions are adopting revolutionary tools that promise to liberate members more, empower them with knowledge, and give them a higher degree of protection. These include remote deposit capture for individuals and businesses, multi-functional mobile banking, and online financial budgeting and management tools with improved search, alert, and reporting capabilities.

The introduction to this paper explores how technology on the fringe relates to certain segments of the population—who has access to it, who doesn't, and the impact of age and income. To get insights into technological innovation in the next few years, we interviewed Scott Burwell, senior solutions manager of the strategic initiatives group for Jack Henry & Associates Inc. and his associate, Carl Barlow, director of software architecture at Symitar, a subsidiary of Jack Henry. Burwell and Barlow provide insights into a variety of technology issues, including:

• Integration and IT architecture promises
• What is hot is not necessarily new
• Biometrics
• Tracking and fraud protection
• Remote deposit capture
• Online funding
• Automated pricing software
• More sophisticated MCIF and true CRM
• Wireless data applications and mobile banking
• Virtualization technology
• Virtual education

The merits of these various “fringe” technologies are then discussed using real-life examples from credit unions, including the role of technology-focused CUSOs, which can provide a wide range of tailored solutions for credit unions and help lower prices by providing greater competition to technology vendors.

It's imperative that technology serve the vision of the credit union and be based on member need. Generation Y is a prime consumer of new technology and expects its financial institutions to have it. Those in their later years, who are burdened with busy schedules and life tasks, appreciate the convenience it brings and the added protection for their accounts/assets.

It's also essential for credit unions to step back and evaluate whether there is member demand for a certain technology before heavily investing in it. It is all too easy for a credit union to get swallowed up by the media's or a technology vendor's pitch and risk herd behavior. With some types of technology such as mobile banking, it is possible to try it out and gauge member reaction via a subscription to a vendor partner.

Once a credit union has made an investment in a new technology, it needs to try it out on a small group of staff/board members to smooth out kinks before an official rollout. It's critical that employees feel comfortable and embrace the new technology so that members will pick up on that attitude and do the same. This is particularly true with enrollment for biometric services and other types of hands-on technology in the lobby. Staff will need to guide members through the process so it becomes natural and preferable to use it. Alongside of that, it's helpful for credit unions to consider producing web tutorials or videos to assist members in getting the most out of technology on the fringe.

This summary is from a CUNA Technology Council white paper by Elizabeth D. Thompson entitled “Technology on the Fringe.” Read the complete paper in the "White Papers" section of the CUNA Technology Council website.