Peer-graded Assignment: Case Discussion: U of I Credit Union

Question # 1
What are the factors that have made money so easy to digitize?
Answer:
The factors that have made money so easy to digitize are discussed as below;
• Technological Advancements:
The advancements in digital technology like the internet, mobile devices and secure encryption have
permitted the formation of digital currencies and digital payment systems.

• Convenience:
The convenience that is offered by digital money includes the facility of doing online transactions and
abolishes the necessity of physical cash or checks.

• Globalization:
The interlinked global economy requires faster and more efficient trans-border transactions, which digital
money provides.

• Financial Inclusion:
Digital money can reach individuals who previously had slight approach to traditional banking services,
advancing financial inclusion.

• Cost Savings:
It is often economical to manage and transfer digital money, decreasing the expenses associated with
printing, storing, and transporting physical cash.

• Security:
Digital transactions can embrace vigorous protection measures, such as encryption and authentication,
making them less endanger to theft and fraud.

• Traceability:
Digital transactions are easier to pursue and observe, helping in anti-money laundering efforts and tax
collection.

• Innovation:
The innovation has been propelled by FinTech companies and start-ups in digital finance, producing new
products and services that make it easier to digitize money.

• Consumer Demand:
The facility of digital transactions is frequently preferred by consumers, which has further hastened the
digitization of money.

• Government Initiatives:
To lessen the shadow economy, the numerous governments are earnestly encouraging digital payment
adoption to amplify transparency, and improve financial stability.

These are the factors that have conjointly made money easier to digitize, transfiguring the way we conduct
financial transactions and manage our finances.
Question # 2
What new digital innovations could a financial institution such as the UICCU develop in order to enhance its
business?
Answer
A financial institution like the UICCU could traverse several digital innovations to intensify its business:
• Block chain and Crypto currency Integration:
Offering crypto asset services or employing block chain technology for reliable and translucent transactions.

• AI-Powered Customer Support:

Implementing AI Chabot’s or effective assistants for 24/7 customer support and customised financial advice
.
• Robo-Advisors:
Developing robo-advisory manifestos that use analytical to provide motorised investment advice and
portfolio management.

• Digital Identity Verification:

Enhancing security through biometric authentication and digital identity verification solutions.

• Open Banking APIs:

Providing open APIs to stimulate collaboration with Fintech start-ups and permit coherent data sharing with
customers.

• Mobile Banking Enhancements:

Creating feature-packed mobile apps with augmented reality (AR) for property or investment resolution.

• Data Analytics:
Utilizing big data and machine learning to analyse customer data for customized product exhortations and
fraud detection.

• Peer-to-Peer Lending Platform:

Establishing a P2P lending platform to link borrowers and investors directly.

• Ecosystem Partnerships:
Partnering with non-financial institutions (e.g., e-commerce platforms) to offer unified financial services.

• Digital Wallets and NFC Payments:

Evolving secure digital wallets and assisting NFC payments for contactless transactions.

• Green Banking Initiatives:

Advancing justifiable finance through green speculation options and carbon footprint pursuing.

• Cybersecurity Innovations:
Investing in proceeded cyber security measures to secure customer data and transactions.

• Quantum Computing Research:

Exploring the prospective of quantum enumerating for proceeded risk evaluation and encryption.

• Financial Education Apps:

The formation of applications or platforms that proffer financial proficiency and education assets to
customers.
 • Voice Banking:
Authorizing customers to execute banking tasks through voice-activated auxiliaries like Amazon Alexa or
Google Assistant.

• Tokenisation of Assets:
Traversing the tokenisation of traditional assets like real estate, making them more accessible to investors.

• Digital Mortgage Solutions:

Streamlining the mortgage implementation process with programmed tools and cybernated document
verification.

• E-KYC (Know Your Customer):

Simplifying customer apprenticing through electronic KYC processes.

• Behavioural Finance Tools:

Executing tools that grasp behavioural science to help customers make better financial decisions.

• AI-Powered Credit Scoring:

Using AI to filter credit scoring models and enlarge lending to disproportionate populations.

The implementation of these innovations would need meticulous planning, regulatory conformity, and a
focus on customer experience to ensure their successful unification into the UICCU's business strategy.

Question # 3
What did you learn from this case about Digital Dominance?
Answer
I have learnt several key points from the U of I Credit Union about digital dominance. These key points are
discussed below
• Digitization is Pervasive
Money and financial transactions have been swiftly digitized in the recent years, commencing from direct
deposits in the 1970s to more recent innovations like mobile payments and crypto-assets like Bit coin.

• Efficiency Gains
Digitization has crucially upgraded the capability of financial institutions, decreasing the requirement for
physical paperwork, and streamlining processes. This capability expands to administrative and security
measures.

• Consumer Adoption
Consumers have become progressively convenient with automated financial tools like online banking and
mobile payments. This has been eased by innovations in cloud technology and increased trust in automated
platforms.

• Fintech Disruption
The traditional financial institutions face competition from Fintech companies that grasp automated
technology to provide financial services. These anarchists often focus on mobile solutions and can swiftly
adapt to changing consumer preferences.

• Instant Issuing
The case spotlights the significance of instant issuance of credit and debit cards, serving to consumer
partialities for physical cards while acknowledging the shift towards automated wallets.
 • Cloud and Redundancy
The usage of the cloud has lessened the dependence on physical framework and increased prolixity,
warranting progression in case of disruptions.

• Levelling the Playing Field

Digital innovations have authorized smaller financial institutions like credit unions to compete with larger
banks by swiftly embracing new technologies and offering same valuable facilities to customers.

• Consumer Benefits
Eventually, digitization has brought facilitation and accessibility to consumers that make it convenient for
them to access financial services, manage their accounts, and conduct transactions.

In summary, the case defines that how the financial industry has encountered significant modification due to
digitization, influencing operations, consumer behaviour, and competition among financial institutions.
Digital dominance in this context refers to the ability to adapt to these automated changes and provide
innovative services while remaining competitive in the market.