Digital transformation is something every business has to shift toward. Some are farther along the journey than others. Credit unions have struggled to varying degrees, but $873 million University Credit Union is well on its way. CEO David Tuyo has led his team beyond a digital-first mentality and culture to AI-, or artificial intelligence, first.

David said digital transformation means meeting members where they are, and AI allows credit unions to reach even more members where they are. University CU had to set its strategy in this direction even before many were kicked in the rear by COVID to meet and serve its members that weren’t reliant on branches. However, after COVID, the University CU team sped up its digital transformation plan from three years to just over three months! 

Fortune favors the prepared. Because University CU was already moving along the journey toward digital transformation, it was much better prepared to serve members remotely. Despite the quick implementation of automation and initial trepidation from employees, the overall response from University CU’s team has been positive, plus they’ve been given access for additional personal and professional development through UCLA, on which the credit union spends about $10,000 per employee. While bots handle the simple, everyday questions, those serving the members are able to answer the more complex problems, like financial counseling for members going through major life events.

“Now our member engagement levels are tremendously deeper,” David explained, “Our ratings are going up. We’re seeing a lot more 5-star ratings.” He emphasized that engaging employees also helps them engage members. “We have their back. We continually ask them if they feel we have their back, and they say ‘yes.’”

David gave a shout out to University CU’s partners Members Development Company, Institute for the Future, Interface AI and ClaySys (a partner through MDC) for everything from setting strategy to the successful bot implementation, as well as crediting the human culture evolution that had already been established.

Don't screw up the human side of digital!

According to David, University CU is knocking digital transformation out of the park with the three As:

1. Team has the right acumen.

2. Allocate resources effectively for strategy.

3. Take action.

University CU takes care to understand its members and employees. If there’s one thing the credit union wants more, it’s feedback from the people who use their website and other digital tools. Members can communicate directly with David through www.UCU.org, which helps the credit union differentiate itself as well as demonstrate the member-owner relationship for its members.

After all, as David points out, the top 5 banks all over $2 trillion in assets; the entire credit union market isn’t even $2 trillion. That’s why differentiation and the 3 As are so important, and right now University CU in focusing particularly on allocation. Which A is your credit union on?