Although the economic landscape is in turmoil right now, analysts still agree that credit unions are being presented with the opportunity to expand in to areas that make it easier for their members to do business. However, expansion does not necessarily mean building a new location. Credit unions must leverage new technology, such as image teller platforms, Web 2.0 applications and online account opening and funding solutions, to grow both organically and through additional market share.

The rush to implement solutions that provide members with the convenience of at-home banking is a double-edge sword because it pushes members away from the branch and potential cross-selling opportunities, but the danger of passing on those solutions is even greater. Credit unions can use the solutions to expand their reach, use data mining technology and help capture the growing number of Generation Y’ers and Millenials who are searching for a financial institution.

Each year credit unions are faced with the challenges of creating greater value for members while remaining competitive and all of this has to be balanced with developing and maintaining new compliance standards. The latest upcoming deadline of the Fair and Accurate Credit Transaction Act of 2003 Section 114 (FACTA) can be met with online account opening and funding technology. Automating the process will not only ensure that identity fraud detection and prevention is consistent, but it is not as labor intensive and fully auditable.

A few years ago, online account opening and funding technology was a novelty and perceived as being too expensive or too leading edge for an average bank’s investment. Today advancements in technology have made this technology affordable and profitable for any financial institution. Online account opening and funding is another way to raise core deposits and better position institutions to weather the economic storm.

Rich Internet applications (RIAs) create a more enhanced and engaging Web environment, and their capabilities are expanding. While the top 25 banks have made incremental improvements using RIA technologies over the last 15 months, mid-sized banks, who have the most to gain, are expected to catch up quickly.

Banks are leveraging predictive analytics to understand customers’ behaviors and properly respond to their needs with products and services. The data has always been available, but bankers need to know how to apply it to their advantage in order to increase cross sells and strengthen customer retention.

While many financial institutions are experiencing a decrease in savings rates, credit unions are beginning to see deposit growth pick up. Deposits were difficult to grow before and are even more difficult in today’s environment, but credit unions have an opportunity to win members by acting in their best interest.

While the usage of smart cards has become prevalent in every other market in the world, efforts in the United States to replace magnetic stripes has failed over the years. Dinesh Sheth, CEO of uMonitor, believes the United States will skip using smart cards and go directly to mobile banking.