Credit Unions Partner With FinTechs to Compete Like One
22 Feb 2022
The digital transformation has made the financial landscape more crowded and competitive than ever before. Credit unions (CUs) face the dual challenge of finding ways to offer the latest digital banking tools to their members while still bringing something extra that differentiates them from neobanks and even larger, traditional financial institutions (FIs) with whom they now have to compete. FinTech partnerships provide the potential to help CUs in offering the latest in online and mobile banking experiences while enabling CUs to focus on delivering the personalized service and community connection that defines them.
For traditional FIs, FinTechs may be perceived primarily as competitors and disruptors. Some CUs may be hesitant to team up with those who are turning the banking industry on its head. On the other hand, FinTech partnerships allow even competitors to collaborate in mutually beneficial ways. Such partnerships can save time and money that would have to be invested in developing new digital banking products while permitting CUs to pick the best results from a field of innovators who have taken on the risks involved with developing new products.
In the latest Credit Union Tracker®, PYMNTS examines how FinTech partnerships can help CUs beat the competition and keep their members satisfied.