From the rise of open banking to shifts in how consumers interact with financial institutions, new partnerships for credit unions and more, technology is rapidly changing how CUs do business. Throughout the month of August, Credit Union Journal has featured stories highlighting the various ways credit unions and the fintech sector are intersecting. Read on for a sampling of that coverage.
Open banking may be a relatively new concept, but that's not stopping credit unions from forging ahead.
As open banking becomes more widespread throughout the United States, credit unions who are early adopters will find greater returns for growth strategies, experts said.
“I think open banking is a major catalyst for rapid change for banks and credit unions at the level of what the internet was in the late ‘90s,” said Chris Catliff, CEO and president of BlueShore Financial Credit Union based in North Vancouver in Canada.
Credit unions don't generally view the fintech sector with the same apprehension they did a few years ago, but that doesn't mean the risk factor has decreased. CUs today are actively searching for partners with whom they can engage to grow their business and expand their reach. But vendor due diligence is as important as it ever was, and the wrong partner could be worse than no partner.
What do credit unions really want in terms of fintech? During the CU Leadership Conference in Las Vegas, Credit Union Journal queried leaders from across the industry about their financial technology wish list. From onboarding tools to ITMs, disaster recovery, data security and more, here's a look at what many in the movement are prioritizing.
The financial services landscape today bears little resemblance to what it was even just a decade ago, both as a result of consolidation and massive technological shifts. But according to Wes Garner, president of TDECU Wealth Advisors, those changes have also positioned credit unions to be even more competitive. The right mindset combined with strategic investments could help the industry thrive at a time when the pace of change continues to accelerate.
Legislative gridlock could spur technology firms to help financial institutions overcome the regulatory burden.
With Congress stalled and next year's election already on the horizon, some have suggested advances in in the regtech arena could help credit unions better navigate an evolving compliance landscape. But plenty of concerns remain, including costs and worries that the field is not yet ready for prime time.
Credit unions today serve more members than ever and the industry has arguably never had a higher profile. At the same time, unemployment is at a historic low and competition for tech talent is fierce. So how can credit unions compete with fintech startups and major corporations to recruit the best candidates? It takes a lot more than just salary, sources said, and there are ways the industry can win over new employees even if they can't offer the same pay as others.
Want to recognize the best employers in the financial technology space? Now's your chance.
Registration for the 2020 edition of the Best Fintechs to Work For program is open now and will run through Sept. 27. Similar to CU Journal's Best Credit Unions to Work For, Best Companies Group, an independent research firm, helps to compile the list. Employers complete a questionnaire about their benefits and policies, and employees take part in a company-wide survey. Best Companies Group then analyzes the data to develop the ranking.
Origin Bank is rolling out software to let customers curb or shut down account-data sharing with third-party apps. In the process, it hopes to learn a lot about client behavior and preferences that it could use in its own products.
Loan officers surveyed by the central bank said the subpar creditworthiness of some applicants and the ability of others to find credit elsewhere are among reasons the middle-market rescue facility has fizzled.
Various trade organizations sent letters to a House Financial Services Committee task force saying lawmakers should "actively discharge their oversight prerogatives" as the national bank regulator considers giving licenses to companies that do not accept deposits.