Many fads deserve to be forgotten: Fidget spinners. Eating tide pods. Super baggy jeans.
But not all trends are bad. Some trends hint at better ways of doing things. Without trends, we wouldn’t have text messaging, online video tutorials, or ridesharing.
Credit unions can learn a lot from the fintechs they partner with. And it isn’t all about moving fast and breaking things. Rather, this is all about how to learn quickly, adapt faster, and build a culture that rewards curiosity.
1. Push the Pace
Amazon once bragged about deploying software updates every 11 seconds. That number probably hasn’t slowed. Meanwhile, many credit unions still schedule system updates quarterly.
Speed matters. So does flexibility. In the years since COVID, members have come to expect instant everything—from account openings to same-day payments. They’re not comparing you to other credit unions; they’re comparing you to the apps they use every day.
That doesn’t mean chasing every new tool. But it does mean building processes that can handle change without panic. Agile projects, shorter vendor contracts, and open APIs help. If your teams can roll out a small experiment in weeks instead of months, you’re already moving faster than most.
The point: Try new things. You don’t have to update software every 11 seconds, but you should put some effort into pilots every year.
2. Understand Trends (and People)
Trends matter because they show how people behave. Pop-up stores, hybrid work, social commerce, even the boom in “buy now, pay later” all started as experiments in meeting people where they are.
The same logic applies to credit unions. Understanding trends means understanding your members. How do they want to interact? What tools make their financial lives easier?
Listening and learning have always been credit unions’ strengths. The difference now is that technology gives you new ways to do both. Data analytics, social listening, and AI-assisted service can surface needs long before a survey ever would.
Years ago South Bay Credit Union hopped on the “pop up” establishment trend. They set up a branch for $2,300, and they used it to reach new members, while providing another location for existing members. $2,300 for a “branch” is incredible no matter which way you slice it.
The point: Not all trends are fads. In fact, some are existential necessities. If you think AI is a trend, you’re wrong. It’s here to stay, and early adopters will be rewarded.
3. Think Like a Fintech
Not every startup survives—but the ones that do share a few habits worth stealing:
They iterate. They ask for feedback early. They fix what doesn’t work. They ship again.
Fintechs thrive because they build, test, and learn in short loops. Credit unions can take the same approach. You don’t have to build your own app to think this way. Partner with fintechs. Run small pilots. Test new workflows internally.
Thinking like a fintech isn’t about trying to be one. It’s about keeping the mindset that every problem has a solvable experiment behind it.
Here are some ways that credit unions can still serve as incubators of innovative ideas:
- Meet with startups and fintechs
- Roll out live betas
- Listen to new ideas
- Communicate with partners
- Look outside typical networks
The point: Thinking like a fintech doesn’t mean trying to be one. Rather, it’s understanding that every problem can be solved with enough curiosity and experimentation.
4. Create a Culture of Innovation
People want to work for organizations that try things. They want to know their ideas count. That’s the heart of innovation.
Create room for small failures. Budget for a few experiments that might not pay off. Celebrate lessons learned, not just perfect outcomes. The fastest-growing credit unions we talk to all have one thing in common: they treat innovation as a daily habit, not a quarterly project.
The formula is simple: try, test, learn, repeat. Don’t worry about failing. Worry about being too risk-averse to try anything new while the world changes around you.
Plus, if your CU doesn’t try new things (or encourage your employees to experiment), you’ll lose your most innovative staff as they leave for more exciting opportunities.
The point: Don’t just create space for innovation; create a mandate for it. Let people find solutions for problems, and give them space to solve them, knowing that not all solutions will work.
Tips for Failing Forward, Fast
So, we’ve probably hammered the point home enough. You must be comfortable with some level of failure. The key is not to dwell on that failure (or let it prevent you from trying something else).
Here are a few suggestions about how your credit union can speed up:
- Budget for unknown opportunities and failures
- Create trust with the board
- Report progress
- Keep contracts short or cancelable
- Think of vendors as partners
- Don’t be afraid to pull the plug
Learn from your failures. And the ultimate question is this: are you putting yourself out there? The answer should be “yes.”
Not everything is going to work out. Sometimes, it might seem like nothing will. However, surprisingly often, pushing for innovation will help you to discover or create something really cool.
You’d be surprised by how often you solve big problems just by taking a swing, though. And in so doing, you’ll rise above a sea of complacency.
You might even have fun doing it.
What’s the First Step?
Innovation doesn’t mean chasing shiny objects or burning through budgets. It means staying curious, asking better questions, and trying ideas that could improve how you serve members.
Right now, if you’re not experimenting with what AI can do, you’re already getting behind. Even if you’re just starting to poke at the edges of what ChatGPT, Gemini, and Claude can do, that’s progress.
Of course, it’s not all about generative AI. Fintechs are entering the credit union market faster than anyone can keep track.
But we try to keep track anyway. And if you want a back-pocket tech scout on your side, get in touch!
Learn about a handful of relevant fintechs every quarter with a 30-minute call.
