FinTech and Credit Union Partnerships: A New Era of Collaboration
The financial landscape is undergoing a significant transformation as FinTech companies and credit unions (CUs) increasingly find common ground. Onc perceived as competitors, these entities are now forging partnerships to deliver innovative digital banking solutions to consumers.Understanding this evolving dynamic is crucial for both credit union executives and FinTech entrepreneurs.
The Shifting Sands of Competition
For the past four years, the proportion of FinTechs offering consumer-facing and back-end digital banking technologies to CUs has remained relatively stable. Though, recent data indicates notable shifts in engagement, competitive perceptions, and the ease of collaboration. More than half of all FinTechs actively serve the CU sector, primarily through vendor-client relationships. This underscores the growing value proposition that CUs represent for the FinTech market.
The competitive atmosphere that once characterized the relationship between these industries has diminished, paving the way for partnerships that can provide CU members with the digital-first technologies they increasingly expect.
Key Findings: “Navigating the Evolving Landscape”
These insights are drawn from “Navigating the Evolving Landscape: FinTech and Credit Union Partnerships,” a collaborative report by PYMNTS Intelligence and Velera. The report examines how FinTechs are innovating to meet the financial needs of consumers at CUs. It includes insights into how those firms are working with banks, large and small. The findings are based on a survey of 100 executives at FinTechs that provide services to CUs, commercial banks, community banks and individual consumers. The survey, conducted between Oct. 24, 2024, and Nov. 19, 2024, investigated how fintechs partner with CUs to provide innovative banking solutions.
Key Areas Explored in the Report:
- Redefining Roles: Discover how FinTechs are shifting from competitors to strategic technology partners within the CU ecosystem.
- Evolving Challenges: Explore the challenges and opportunities that shape how FinTechs approach product development and go-to-market strategies for CUs.
- Onboarding and scalability: Learn about the factors influencing which FinTechs succeed in forging lasting CU partnerships.
- Collaborative Growth: Gain insight into how a more collaborative landscape reshapes FinTech and CU partnerships for long-term growth.
The Customer is always Right
FinTechs are increasingly viewing CUs as customers rather than competitors. This shift in perspective is fostering collaboration, enabling them to deliver the products and services that today’s digital-first members demand. The report features seven charts of data that explore the challenges and opportunities FinTechs encounter when selling to CUs.It highlights how both are innovating digital banking and payment solutions to drive future growth.
The report provides seven charts of insightful data that explore the challenges and opportunities FinTechs face when selling to CUs. Download the report to learn about how both are innovating digital banking and payment solutions to drive future growth.
