Tech Time: Crypto holds the key to credit unions’ future
In today’s rapidly transforming financial services landscape, cryptocurrency offerings will help CUs remain a relevant, credible choice for younger members.
The world of finance is undergoing a seismic shift, driven in no small part by the emergence of crypto assets as an investment class. Against this backdrop, credit unions, typically considered amongst the most trusted traditional financial institutions and once the backbone of American towns across the country, have reached a critical point.
In the past, credit unions and regional banks (we’ll call them TradFi) could rely on their members’ or customers’ children to bank with them by default. Today this no longer rings true, as less than half of Gen Z and millennials used the same financial institutions as their parents in 2021. For many people in this group, crypto trading tops the list of digital financial capabilities they want, with 64% of millennials having invested in cryptocurrency.
For credit unions to successfully onboard young and crypto-savvy members, they must use effective design and guarantee that app integration is seamless but adheres to strict regulation. All of this must be delivered, of course, while ensuring trust and safety.
Trust and Safety Are Paramount
News of high volatility, hacks, scams and lack of regulation in the DeFi (decentralized finance) sector can make potential investors wary, so players within the cryptosphere have had to adapt quickly to gain and retain the trust of customers.
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