To keep pace with rapidly evolving member demand for digital financial services, credit unions are working with more third-party providers than ever before. Falling under the large and somewhat nebulous umbrella of “fintech,” these partners are essential allies in the battle for engagement and lifelong loyalty. That said, not all fintechs are equal. Far from it. In fact, the fintech marketplace is about as divergent as they come, with high-value startup unicorns on one end of the spectrum and digitally transformed legacy firms on the other.
Navigating the unfamiliar terrain of the fintech landscape may not be simple, but it’s not an insurmountable task. Willing board volunteers can play active roles in helping their credit unions find and implement the right technology to support growth and member satisfaction goals. Here are a few things to keep in mind.
Fintechs Friends and Fintech Foes
Credit union board members can think of fintech firms as falling into one of two general categories—friend or foe. Friendly fintechs are those that have a stated goal of strengthening traditional financial institutions’ value proposition. These are the technology innovators with a business model that makes partnering with credit unions, banks and other established financial institutions essential for their ultimate success.
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