How speed makes today’s CUSO marketplace
If you are a credit union just now thinking about a digital banking CUSO for your cooperative, you’re already playing from behind.
The biggest financial institutions in the United States are investing in financial technology, or fintech, that unfortunately aren’t on the radars of a lot of smaller institutions or credit unions. Recently, a leading investment bank announced it has increased its annual technology budget to $12 billion. That is 26 percent more than that particular institution spent in 2020. Obviously, credit unions have a fraction of the budgets at that scale while running the risk of losing potential members and consumers to financial institutions with more advanced digital offerings.
That said, there are a multitude of credit union service organizations (CUSOs) and fintech companies with plenty of innovative capabilities and functions to compete with the big baddies to level the competitive field. As opposed to the big institutions that spend tens of millions of dollars and months to years on developmental research, testing, and implementation, the cooperatives that partner with ready-made, third-party CUSOs give themselves a fantastic budgetary advantage to save capital while onboarding the platform into their cores with much greater efficiency, ease, and time.
Credit unions should endeavor for a digital banking solution that’s built to support today’s contemporary, evolving market; a platform with an API-first design that features an ease-of-integration that ensures a smooth and timely member experience. In today’s marketplace, however, the products that “take time” to deliver don’t usually last.
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