Systems of Engagement: A New Way of Thinking

Part of the challenge for banks and credit unions looking to convert to digitally focused institutions is that it requires a new way of thinking.

Traditionally, when you think about information technology and solutions inside of a bank or credit union you think about heavy, enterprise grade, core types of systems of record. That could be the core processing system, it could be traditional payment systems, it could be CRM, etc. And the challenge with what has happened in many cases is that banks and credit unions have started with those enterprise legacy systems and tried to define digital solutions for their customers within the constraints of the legacy systems of record, confining the solution to what is feasible.

The problem is that there’s a lot of inflexibility with those systems of record. It creates silos, it creates constraints in what the technical capabilities are, and ultimately doesn’t allow a full breadth of products to be offered to the end customer.

The new way of thinking is to approach the problem from the opposite direction and rather than start from what you have in terms of legacy systems, you start with what the user journey should be–what is possible vs. what is feasible–and think about things in terms of systems of engagement. Those systems of engagement should protect the end user from all the complexities that you have in terms of your systems of record, not the other way around. This is both the challenge and the opportunity for banks and credit unions as they look to become digital organizations.

For a more in-depth discussion on how credit unions can accelerate their digital adoption and transformation, check out this recent interview I did with CUbroadcast.