Enhance member experience | Accelerate the digitalization of credit cooperatives, creating a future for Generation Z

Elevating memberexperience |Acceleratingdigitization in credit unions Executive Summary Credit unions continue to demonstrate resilience and purpose, growing their assets under management whileserving member segments often overlooked by traditional banks. They play a critical role in promoting financial However, changing expectations, especially among Gen Z, are reshaping the competitive landscape, withdigital convenience now a decisive factor in member choice. Fortunately, advances in disruptive technologiesare creating practical opportunities for credit unions to modernize, digitize their businesses, and elevate their This white paper explores how Temenos and Myridius have partnered toaddress these challenges, offering a streamlined approach that makesdigital transformation more viable and achievable for credit unions.Together, we outline how the right combination of technology Despite their impact on US banking, credit unions faceincreasing pressure to adapt to a fiercely competitive andtech-focused landscape Credit unions service over $2.3T in assets today, with 434 credit unions in the $1-10B asset range and 286 creditunions in the $500M- $1B range, together contributing almost 40% of the assets. Credit unions’ charter allowsthem to stand differentiated by offering a personalized, well-curated, almost white-glove member experiencecompared to traditional banks. Over the past few years, they have retained their market share, but their share With the pace of digitization, both regional and large banks are gaining ground in offering a far improved omni-channel experience to their customers today. They are also able to invest more rapidly in technology to be able However, the advent of AI can be a great leveler and improve competitiveness of Credit unions as it promises toserve a dual purpose- derive cost efficiencies, while also improving member engagement and retention. Credit unions must effectively tailor their offerings to attractand serve diverse demographic segments Top 5 preferences across generational segments Industry analysts point to Credit unions losing out on enrolling younger generation due to less-than-optimal Larger banks are today spending 100 times the amount spent by a typical $1B AUM credit union. And sincebudgets and skill availability are limited for a credit union, it is imperative for them to be smart about it. •Pick a leaf out of digital banks’ playbook and go after specific sub-segments with a high touchapproach. This needs tailored customer journeys to offer bespoke community/member experience •Decide what to build and where to tap into the power of ecosystems and generate quicker ROI throughFintechs •Quick success with specific business cases on user experience, reduced churn and higher enrollment toenable core system transformation which can be a costly multi-year program Digital account opening and onboarding present anaccelerated transformative opportunity The digital account opening and onboarding use case represents an accelerated transformative opportunity forcredit unions under $10B in assets to enhance competitiveness, drive growth, and better serve their members. A digitally enabled credit union can offer the following use cases (and more) to the Gen Z members- •Personalized digital banking experience•Financial wellness and Financial health monitoring•Instant payments and P2P transfers•Automated Savings and Investment Tools Beyond these use cases, digitization also opens the door to unlocking the power of Agentic AI. Even among younger generations, credit union members are less inclined than bank customers to openaccounts digitally. This reluctance often stems from the shortcomings of existing digital infrastructure, Agentic AI infusion can significantly enhance and streamlinethe digital account opening and onboarding process forcredit unions Furthermore, with Digital account opening and onboardingin place, downstream IT processes will be more efficient Contact center operationsVolume reduction + AI chatbots/virtual assistants + Omnichannel integration Collections and loan servicingFaster loan processing + Automated notifications + Member 360 profiles Back-office & complianceAutomated KYC/AML checks + Unified data systems without duplication and errors Product cross sell and marketingData driven targeting + Programmatic marketing Critical considerations for a Digital account opening andonboarding program •Rapid time to market benefitsPlatform to enable building digital customer acquisition initiatives in months, not years, reducing IT burden and providing the agility for continuous improvements. This also includes ready integrations •Outstanding customer experience promiseAble to deliver seamless omnichannel experiences that reduce abandonment rates and shorten onboarding cycles. The architecture needs to support both digital-first and hybrid experiences, allowing •Integration and scalabilityWorks as a core-independent architecture with