The purpose of this blog is to outline the questions that your credit union needs to be asking now. Not tomorrow. Not next quarter. In fact, if your leadership team hasn’t already discussed at least one of these topics, you’re already behind.
Warning! We’re going to talk about a lot of buzzwords in finance here. But it’s for good reason:
These buzzwords will shape the future of credit unions, fintechs, banks, and other financial institutions for the next decade.
So, what are the questions?
Note: Join the Brainstorm Event on July 14th for current thought leadership on these topics.
1. Which tools and skills will tomorrow’s leaders need?
Digital transformation accelerated by a global pandemic. The advent of big data, AI, and blockchain technology. Remote work.
The fact is, tomorrow’s CEO is inheriting a different world than yesterday’s. What technology will they need? Which skills should they develop? And who will help them?
2. When (and how) will you use AI?
Many financial institutions already use AI. Many more are getting ready to. The question isn’t if your credit union will use AI… it’s when.
How will you approach it? Which problems do you want to solve first? Which use cases are the most compelling or most attainable for your credit union?
3. Which vendors are best positioned to serve you?
Though the largest providers may have the most bells and whistles… or the best advertising… they may not be suited for your credit union. Smaller credit unions often feel they aren’t a priority to established vendors.
How will you vet smaller or newer vendors? Are CUSOs better able to meet credit union needs? Which vendors understand the industry’s unique regulatory requirements?
4. How will you attract and retain younger members?
Credit unions have a visibility problem with Millennials and Gen Z. Many don’t know what credit unions are—and don’t realize they can get savings accounts, loans, financial education, and more.
How will you reach younger generations? How will you communicate your value and appeal? What do you offer besides good service—especially when fintechs often offer digital-first convenience?
5. What is your credit union’s stance on blockchain and cryptocurrency?
There’s no such thing as unhackable, but there is always such thing as more secure. Blockchain, crypto, and DeFi could either empower or destabilize traditional financial institutions.
Will you attempt to leverage these secure, decentralized technologies? Will you keep your distance until you know more—or until it’s too late? Or will you work against it?
6. What are your goals with analytics?
At this point, most credit unions do or will work with data analytics. Those that don’t are either very niche or very small. But data sources and analytics platforms are incredibly accessible, affordable, and easy to set up.
Whether your credit union has been using data analytics for years or is still planning its start, you’ll need to answer some questions:
What are your goals? What do you hope to accomplish? How will you ensure you’re using the best data? And what kinds of insights can you extract?
Next Steps for Credit Unions
The CU 2.0 Fintech Mastermind group includes several dozen fintech and credit union executives. Each month, they meet in small groups to discuss questions like these.
As a group, they consider the questions above to be the most impactful and challenging topics for the future of the financial industry.
Members from the group will share their expertise in our Brainstorm Event on July 14th. Credit union executives are encouraged to join. Space is limited, so reserve your tickets ASAP!
Brainstorm topic: Digital CEO: The Tools Tomorrow’s CEO Needs Today, sponsored by OM Financial Group.
Speakers: Kirk Kordeleski (OM Financial Group), David Wexler (ModusBox).
Brainstorm topic: AI in Finance: Examples, Use Cases, and Challenges, sponsored by Scienaptic.
Speakers: Darryl Hicks (FlexPay), Ryan Canin (DocFox), Jim Kasch (Scienaptic), Jake Tyler (Finn AI).
Brainstorm topic: The Rise of CUSOs in the Industry, sponsored by Messick Lauer & Smith P.C.
Speakers: Brian Lauer (Messick Lauer & Smith P.C.), Joel Schwarz (DoubleCheck), Barb Lowman (CUNA Strategic Services), Frank Wasson (former CU President/CEO).
Brainstorm topic: Marketing to Millennials and Gen Z, sponsored by LiveSurvey.
Speakers: James Robert Lay (Digital Growth Institute), Amy Herbig (The BA Group), Karen Sweeney (Bethpage FCU), John Lanza (SniggleZoo).
Brainstorm topic: Blockchain: How Disruptive Are DeFi and Crypto?
Speakers: John Best (Best Innovation Group), Paul Fiore (ePallet), John Ainsworth (Bonifii).
Brainstorm topic: Analytics! sponsored by Arkatechture
Speakers: Jamie Jackson (Arkatechture), Anne Legg (Thrive Strategic Services), Jeboah Joerg (HomePace), Tim Tibbals (Aux)