Performance Measures for Digital Services

Guest author Naveen Jain is the founder and president of CULytics. He's a credit union leader experienced in actionable strategic planning, data analytics, marketing and innovation that deliver immediate ROI at multi-billion dollar institutions. He can be reached at naveen@culytics.com.

Credit unions exist to serve members. However, when it comes to the digital experience, credit unions continuously strive to find the sweet spot where technology and personal service intersect. Statistics show that Credit Unions are on a slow-moving digital journey in comparison to their traditional banking counterparts.


To gain a better understanding of the maturity of the digital services initiatives and better understand how good performance measurement can improve the results, a session was conducted by CULytics in which, Bob Little, Advisor at CULytics, and I hosted a discussion on measures that must align with the strategies of the organization.


The agenda of the session was to discuss the maturity of digital services in credit unions, practical examples of digital services performance indicators, and best practices for implementing digital services metrics programs. Here are some key points that are worth reading.


The Impact of Digital Services

Traditionally, the member has to go to the branch to meet the representative for his/her work and take follow-ups for approvals and receiving funds. In the digital era, it has become very easy to apply online through mobile devices and receive approval and fund instantly. As a credit union, providing a digital experience to members is great from the strategic point of view.


The Modern Member Experience

With the advancement of technology, new member onboarding has become smooth as things happen digitally – be it for paperwork, deposit details, or feedback among others. Serving members has become tremendously easier as they can opt for self-servicing using chat-bots, online portals and mobile. Options for assisted servicing are call center, relationship manager, and grievance redress.


Digital Banking Maturity Model

There is a difference in what happens at the front office, mid and back office. When it comes to measuring maturity, it is important to analyze where you were, where you are and where you have to go. Nobody can move manual to digital in a moment; there are stages that require a proper strategy to reach there. The model comprises this thesis:

  • Front Office: Here much of the work is done at an advanced level as compared to the middle and back office. The front office member experience should be as digital as possible.

  • Middle Office: Much of the work is done at the basic level here.

  • Back Office: Medium level of the maturity model is used at the back office.

With a more sophisticated approach to data and analytics, organizations can adapt to change before it happens. Plus, working on descriptive, diagnostic, predictive, and prescriptive analytics will help in the optimization of the work.


Unconscious Technology Bias

Believing that the technology is mysterious and a “wonder” and it is better than current options. Also, sometimes, leaders may favor a new technology even if it is unproven. Such beliefs about new technology can lead to poor decisions. This bias needs to be avoided.


How to Avoid New Technology Biases

These biases can be avoided by:

  • Focusing on a new technology’s functions, actual performance, and practical relevance

  • Knowing the actual needs of the organization