by Libby Calderone, President of Envisant

One third of credit unions see fintech firms as their primary market competitor. Indeed, the innovative, digital nature of fintechs has helped them keep pace with changing consumer demands and provide convenient financial services people want. By partnering with fintechs, credit unions can overcome this competitive challenge and turn it into an opportunity to strengthen their position within a changing marketplace through several key areas of service and business operations.

Enhanced member banking experience

Fintech partnerships can help credit unions overcome limited resources to more effectively access new, innovative banking technology for an enhanced member experience. The variety and rapid development of fintechs continues to bring a wealth of options for empowering credit union success in meeting member service goals. From streamlining the loan application process to creating a tailored mobile app with real-time transfer and budget management capabilities, credit unions can find a fintech service that matches their member services goals.

Financial well-being and serving the underserved

Supporting financially healthy members and communities while reaching out to the unbanked and underserved is an important part of the credit union difference. Fintechs can provide a variety of solutions that help effectively achieve these goals. When it comes to financial health, Gen Z in particular is anxious for assistance in building their financial strength with 39% of this generation listing automated money management guidance as the banking service most important to them. Fintechs can help credit unions provide these types of important tools. Fintechs can also empower credit unions to better serve the underbanked with more flexible loan options or quick emergency cash so these members don’t have to turn to high-interest alternatives.

Better member insight and communication

Fintechs enable credit unions to gain clearer insights into member needs and communicate more effectively. For example, an app that helps manage credit card debt can enable credit unions to pinpoint members who may benefit from other debt management offerings like consolidation loans. Automated AI voice and chatbots can offer personalized communication while extending help to members after hours.

Greater data protection

For many consumers, data and identity protection are top concerns. Fintech companies can help credit unions implement cutting-edge fraud technology, such as AI, to better protect member data and strengthen trust and loyalty. Half or more of Gen Z sees protecting this type of information as the most important consideration in a banking service provider, so partnering with fintechs can help credit unions stand out to this rising market and attract new potential members.

Cost-effective efficiency

Fintechs not only help enhance the member experience, but they can also simplify and automate back-office operations, saving time and money. AI voicebots, for example can do the routine calling work so that staff can accomplish more in less time and devote greater attention to serving member needs. Using fintech to handle these routine tasks frees up staff time to focus on developing solid member relationships.

Investment opportunity

Fintech partnerships offer an exciting opportunity for credit unions to be at the forefront of innovation. By becoming a fintech investor, credit unions can take this collaboration to the next level and have a seat at the table for future developments. Credit unions can become owners within an ecosystem of shared ideas and knowledge, enabling them to more easily leverage new technology while potentially earning a return on their investment.

Considering all the benefits offered by fintechs, collaboration with these industry disruptors, whether through investment or partnership, is a key part your credit union’s future success. It’s a way to meet innovation head on and empower your credit union and members to thrive.

As an award-winning CUSO focused on supporting credit union success, Envisant has partnered with Curql Collective to provide credit unions with assets between $100 million to $1 billion the opportunity to invest in new fintech development and better leverage these innovative services. Click here to visit our website and learn more.

Originally Published on CUInsight.