Process automation, database improvements, and advances in machine learning are possibilities for credit unions. In addition, there are chatbots and cloud infrastructure

Topics such as the metaverse and autonomous robots are on the lips of many organizations. However, innovation in cooperatives largely depends on a greater capacity for organization. It also depends on the improvement of internal processes. Therefore, process automation and database improvements are matters much closer to reality. The same is true for small advances in machine learning, chatbots, and cloud infrastructure.

In addition, experts see credit unions as fairly traditional environments, much like family businesses. As a result, innovation happens in a more controlled, gradual, and slow way. It is a more restricted environment than startups or technology companies. In those companies, innovation is part of the DNA and constant process improvement is the norm.

In practice, despite this, the need for digital transformation has grown. As a result, many of these institutions seek more effective results through innovation. Moreover, this was combined with an attempt to build a culture of innovation. In this environment, that culture is directly related to the creation of specific programs.

These initiatives are well regarded and help credit unions find solutions. After all, they open space for mistakes and experimentation. Previously seen as negative, this is something many leaders now encourage. As a result, these programs help train managers and foster new ideas. Moreover, they provide a flow for their analysis and development.

Furthermore, the success of cooperativism directly impacts Brazil’s economy. The country has 4,880 cooperatives and 18.8 million members, almost 10% of the population. In addition, they employ nearly 500 thousand people, according to OCB data.

In search of more promising results

Likewise, a survey conducted in 2021 by the OCB System (Organization of Brazilian Cooperatives) looked at the topic. It showed that the cooperative movement is eager to innovate. Nearly 500 institutions took part in the study. Of those, 84% said they consider innovation “important for the growth and development of the sector.”

As a result, in a traditional environment, this perspective of transformation is welcomed. Moreover, it is consolidating because it delivers results. For example, 88% of cooperatives recorded positive performance after implementing innovative projects. These include improving internal processes, creating new products and services, and increasing revenue.

Meanwhile, cooperatives are pursuing innovation in different areas. For example, customer service (64%) and marketing and communication (60%) stand out. Technology (53%) and sales (45%) follow.

Despite the interest in improving, cooperatives in general still suffer from creativity gaps. For example, 42% of them report a lack of ideas and projects. Moreover, only 29% allocate resources to innovation. This demonstrates the importance of innovation programs in this environment. In addition, such programs bring together people from diverse profiles and areas. Therefore, they can understand problems, discuss them, and seek solutions.

The importance of IT for credit unions

In short, the moment credit unions are living through is similar to that of many companies. This is especially true after the difficulties faced during the pandemic. The need for home office forced many of them to seek solutions in different areas. As a result, they started understanding the Information Technology department as a strategic element for their business.

After all, IT must focus on high-value activities to achieve this. Such activities can directly affect business performance, as we discussed in this article. For example, some technologies and their applications are being used in credit unions and other segments:

The technologies driving the transformation

In addition, artificial intelligence – It aims to ensure that repetitive processes (tax-related, for example) can be automated. As a result, it brings more agility and speed to many tasks. Moreover, in those tasks human assets waste a lot of time and make many mistakes. It is a great support in the so-called HR 4.0, in filling out invoices, among other matters.

In practice, machine learning – These are solutions developed so the machine can learn concepts and patterns. Moreover, it finds answers through analysis, testing, and observation. Within the financial system, ML makes risk analysis, credit modeling, and fraud prevention easier. Therefore, it optimizes the operations of credit unions and increases business security.

Chatbots/virtual assistants – Increasingly, customers are seeking service through the most diverse channels: social media, WhatsApp, phone, customer service, website… The possibilities are countless and serving multiple users simultaneously is a challenge for any business.

Therefore, chatbots/virtual assistants have emerged as a solution. They guarantee answers 24 hours a day, every day of the week. In addition, they optimize the handling of simple questions and direct complex situations to people.

Data and cloud as foundations

Likewise, analytics/big data – Based on the business’s own data, it is possible to identify improvement opportunities. Moreover, decision-making relies on accurate data. When comparing with other companies in the sector, the technology can be applied as benchmarking to optimize performance.

As a result, its application is varied. In the financial segment, for example, it helps identify behavior patterns. In HR, it helps find the ideal profile for a position. Moreover, in agribusiness, it makes result projections tied to reality under the most varied conditions.

Meanwhile, cloud infrastructure – It enables remote work by separating storage and processing locations. In addition, it increases security (and compliance of members’ data), efficiency, and resource savings in the medium and long term.

A new moment for cooperatives

For many years, cooperatives were seen as a closed environment, with no room for mistakes and restricted innovation. However, the need for digital transformation and competitiveness has changed that reality. These organizations range from farming to financial institutions. As a result, they evolve in processes and investments to continue expanding.

In short, we have a team focused exclusively on credit union accounts. Moreover, it brings expertise and technological intelligence to the success of your cooperative’s digital transformation. Talk to a specialist.