Why credit unions will succeed despite the ‘disruptors’

The branch remains surprisingly resilient in terms of consumer preference.

March 16, 2017 by Steve Shaw, CU Magazine

In 2017, a wide array of organizations solicit credit union members with alternative access to financial services, from social networks to technology start-ups and retailers.

It seems like everyone is jumping on the “fintech revolution” with disruptive technology. Some observers have even predicted the demise of traditional providers as new players enter the space for payments, lending, and deposit accounts.

While these predictions may appear bleak for credit unions and other financial institutions, consumer behavior actually reveals a far more positive climate.

Recently released research from Fiserv, “Expectations & Experiences: Channels and New Entrants,” shows that most consumers trust and prefer financial institutions like credit unions as their primary financial institution (PFI). The survey of more than 3,000 U.S. banking consumers was conducted online by Harris Poll in 2016.