Digital Life Bank and Credit Unions Team up for Digital Transformation and Payments Modernization on Digital Life Bank Public Cloud

The future of financial services is digital. At this point in 2022, the concept of “digital transformation” has become a common term since the coronavirus accelerated the adoption of digital banking products and services in early 2020. At its centre, digital transformation is used to describe an organisation that takes advantage of digital technologies to offer new forms of efficiencies and value that can only be accomplished digitally.

Digital transformation can influence every department of an organisation — from IT systems to transactional processes to its people.

Digital life banks and various Credit Unions have collaborated and agreed to digitally transform and modernise credit union payment services. Presently, people now prefer digital payments over cash and governing bodies are continually updating regulations to keep pace with those demands. This new Payments-as-a-Service platform will be built, developed and managed by Digital Life Bank Services and hosted in a dedicated, private cloud environment on Digital Life Bank public cloud.

To stay competitive, it has become essential that credit unions explore contemporary and forward-thinking ways to exploit financial technology to achieve those same organisational goals while expending less energy, time, and effort. Many small and medium-sized credit unions, for example, are not delivering a digital experience that meets members’ expectations and have not consolidated their data, rendering it useless for increasing efficiency or personalising service.

In a world in which 59% of banking executives believe that the traditional, branch-based banking model will be obsolete by 2025, credit unions risk losing revenue, relevance, and relationships if they cannot bring their digital service offerings up to par.

During the CUNA, Credit Union Awareness Initiative, a credit union bank manager claimed that “potential members were sceptical about credit unions’ ability to compete with big banks in technology innovation.

He additionally stated that, with this partnership, it is time to show members and the rest of the country the true power of the credit union movement.

The Credit Union National Association President and CEO Jim Nussle announced an inspiring initiative called the Credit Union Digitization Working Group. This initiative is created for Credit unions to adopt the latest digital trends in the financial services sector while exploring ways credit unions can leverage technology to drive member satisfaction and the partnership with Digital Life Bank for digital transformation and payments modernization on digital life bank public cloud happens to be the first step.

The various Credit Unions will support the platform to drive innovation and new product offerings, making sure they are competitive within the industry and providing their members with access to the most efficient, cost-effective modernisedpayments processing infrastructure. This platform will also help maintain the readiness of credit unions to comply with evolving regulatory requirements at a much lower investment.

The modernised payment delivered by Digital Life bank as a service platform is installed in a private cloud that is hosted on Digital Life Bank cloud. The high-availability solution is designed to meet strict regulatory requirements for financial data transmission, security and privacy, including a cognitive, real-time fraud detection capability.

The platform will also enable the integration of key third party fintech partners to help the credit unions drive rapid innovation for their members. CEO of Digital Life Bank stated that “By hosting its payments platform in the cloud, we will ultimately enable onboarded credit unions the flexibility to rapidly innovate new digital member experiences for businesses and members across all payment types in a more efficient, safe and resilient manner.”

The CEO of one of the Credit Unions during a meeting stated that ” Changes are happening across the payments industry, such as open banking, and companies outside the financial sector entering the market with new credit cards and cryptocurrencies. All these changes promise a new era of transparency but also increased privacy and security challenges. To keep pace, the need for payment modernization for credit unions has never been greater. We are happy to be working with Digital Life Bank on this initiative.”

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