Credit Unions and Fintech: 3 Tips for Success
Fintech is a word you probably hear a lot about today, but what does it really mean and how does it impact your organization? Broadly speaking, fintech combines finance and technology, meaning financial services that are provided to the consumer through nontraditional means such as tech startups.
Fintech can cover a multitude of different types of services ranging from mobile to cybersecurity, insurance tech, and cryptocurrency. While not all of these services will apply to the credit union marketplace and your specific credit union, many will impact your members and the financial industry as a whole.
Today, credit unions are beginning to realize the advantages of partnering with fintech organizations like strategic partner Capstone because many have already built robust solutions that credit union members are using today. Fintech services benefit your members, your brand, and your path forward.
“Capstone offers credit unions information and multiple services to support their external growth. These services include valuation, brand integration, research, and strategic consulting to expand their business and discover new opportunities,” said Jason Smith, VP of Strategic Resources for NWCUA.
With that in mind, Capstone offers three tips for credit unions that are seeking fintech partners.
- How to get the process started. Start by thinking about where your credit union is going. Then determine how fintech can provide an efficient route to help bring something new to the marketplace, or by providing a service for members. Generate three ideas to move the organization forward and identify companies who might help meet those needs.
- How to vet partners. Determine if you can work well with the potential vendor. You’ll be spending a lot of time with them, so personality and culture are important to consider. It may not be the best partnership if leaders at the credit union and the fintech don’t get along well.
- Understand fads vs. trends. Fads come and go quickly but trends are long term and meaningful over time. Don’t get wrapped up in the short-term solutions. For example, today the quest for user interface trumps everything, but the longer-term trend focuses on how people will interact with technology over time, which is always evolving. Don’t make the mistake of being overly focused on selecting one solution that solves all problems. Technology changes rapidly, and there are many innovators. When it comes to voice assistance, Apple, Google, Amazon, and even Microsoft will likely all have a seat at the table so there may be several available solutions. The ability to anticipate trends will help position your organization for success.
Editor’s note: To learn more about your Association’s Strategic Partnership with Capstone, contact Jason Smith, VP of Strategic Resources, at [email protected]