Fintech: What’s hype and what’s not?

Financial technology companies can lead credit unions forward—but just how far?

No matter the industry, businesses and consumers alike look to technology to simplify their lives. Of course, that’s also the case at credit unions, particularly when it comes to fintechs, aka financial technology companies.

As consumers evolve in their expectations—especially so over the last life-changing year—they expect services to meet their needs more effectively all the time. This can range from how they apply for a loan to how they make person-to-person payments after a virtual game of cards. When credit unions look for solutions to meet members’ latest demands, fintechs often have the answers.

By helping credit unions deliver innovative technology, they help credit unions stay competitive. That’s one of the many ways that fintechs are creating value for and with credit unions right now.

“Fintech companies are increasingly focused on competing with legacy technology vendors to better serve credit unions,” says Alex Johnson, director of fintech research at CUES Supplier member and strategic partner Cornerstone Advisors, based in Scottsdale, Arizona. “This is giving credit unions more choices when it comes to modernizing key technology areas like core banking and digital account opening. This trend is also creating a bigger pipeline of potential acquisition targets for the big legacy tech vendors, which will eventually trickle down as innovative new features for their credit union clients.”

 

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